New Hampshire may have flexible business laws, but small business insurance is still essential. Whether you run a restaurant in Manchester or a tech startup in Portsmouth, understanding New Hampshire’s commercial insurance requirements is critical to staying legal and protected.
WHO NEEDS COVERAGE IN NEW HAMPSHIRE?
If you hire anyone—even part-time—you’re likely required to carry insurance.
State law requires:
Workers’ Compensation Insurance: Required for any employer with one or more employees. Corporations and LLCs with three or fewer executive officers/members and no other employees may be exempt.
New Hampshire is unique among U.S. states in that it does not require auto insurance. However, drivers must prove financial responsibility if involved in an accident, and if you choose to purchase insurance, it must meet minimum requirements. If you do purchase a policy, it must meet these state minimums:
- Liability: $25,000 per person / $50,000 per accident for bodily injury and $20,000 for property damage (25/50/20)
- Uninsured Motorist bodily injury coverage: Must equal your liability limits (minimum $25,000 per person / $50,000 per accident)
- Medical Payments (MedPay): A minimum of $1,000.
Professional Liability Disclosure: Attorneys must notify clients in writing if they do not carry malpractice insurance with minimum limits of $100,000 per occurrence and $300,000 in the aggregate.
While general liability isn’t state-mandated, most landlords, vendors, and client contracts will require it.
ESSENTIAL COVERAGE OPTIONS TO CONSIDER
General Liability Insurance: Pays for customer injury claims, property damage, and legal costs. With New Hampshire’s winter weather, this is crucial for covering slip-and-fall incidents.
Business Owner’s Policy (BOP): Combines general liability with property coverage for buildings, equipment, and inventory at a cost-effective rate.
Workers’ Compensation Insurance: Covers medical bills and wage replacement for employees injured on the job.
Cyber Liability Insurance: Essential for complying with New Hampshire’s data breach notification law (RSA 359-C:20). It covers costs of customer notification and legal fees.
Professional Liability (E&O): A must for any business that provides advice or services, covering lawsuits tied to negligence or bad recommendations.
REAL-WORLD CLAIMS IN NEW HAMPSHIRE
Slip-and-Fall Injuries: A snow removal company fails to treat a walkway, and a client sues. General liability pays the medical bills and settlement.
Employee Accidents: A cook in Concord is burned by grease. Workers’ compensation pays for treatment and covers missed wages.
Bad Advice: A consultant in Nashua gives poor recommendations that harm a client’s business. E&O coverage pays for legal fees and damages.
Data Breach: A small business’s point-of-sale system is hacked. Cyber liability covers the legally required customer notification services.
Discover cost-saving strategies in our guide: Local Business Insurance Solutions to Save You Money.
COST FOR SMALL BUSINESSES IN NEW HAMPSHIRE
Your insurance cost varies based on factors including:
- Location and business type
- Number of employees and their job classifications
- Business revenue and payroll
- Industry risk level
- Claims history and safety protocols
- Coverage limits selected
Workers’ compensation cost is calculated as a rate per $100 of your payroll, based on each employee’s specific job risk classification. A clean claims history and strong safety protocols will lower your premiums.
CLAIMS PROCESS AND COMPLIANCE RULES
If an incident occurs, timing is critical.
For Workplace Injuries: You must file a First Report of Injury with the state within 5 days.
For Other Claims: Insurers must generally acknowledge your claim within established timeframes.
Penalties for non-compliance are severe:
- Failure to carry required workers’ comp can result in a fine of up to $2,500 plus $100 for each day of non-compliance.
- Causing an accident without auto insurance can lead to license suspension and SR-22 filing requirements.
YOUR NEXT STEPS: DON'T RISK NON-COMPLIANCE
Following New Hampshire’s business insurance laws means understanding both what’s required and what makes smart business sense.
- If you have employees, you need workers’ compensation.
- If you buy auto insurance, ensure it includes Liability, UM, and MedPay.
- If you process customer data, add cyber liability today.
Still unsure about your obligations? Call us today at (855) 718-7552
