Best Small Business Insurance in New Hampshire

New Hampshire Insurance Requirements

The State of New Hampshire currently requires businesses with part- or full-time employees to carry workers' compensation insurance. The state also requires all vehicles used for business purposes to be covered by commercial auto insurance.

Commercial Auto Insurance

Section 259:61 of the New Hampshire state statute explains some of the requirements for auto insurance coverage, including exceptions to the rule.

259:61 Motor Vehicle Liability Policy

"Motor vehicle liability policy" shall mean a policy of liability insurance which provides: I. Indemnity for or protection to the insured and any person responsible to the insured for the operation of the insured's motor vehicle, trailer, or semi-trailer who has obtained possession or control thereof with the insured's express or implied consent, against loss by reason of the liability to pay damages to others for damage to property, except property of others in charge of the insured or his or her employees, or bodily injuries, including death at any time resulting therefrom, accidentally sustained during the term of said policy by any person other than the insured, or employees of the insured actually operating the motor vehicle or such other persons who are entitled to payments or benefits under the provisions of any workers' compensation act arising out of the ownership, operation, maintenance, control, or use within the limits of the United States of America, its territories or possessions, and the Dominion of Canada of such motor vehicle, trailer, or semi-trailer, to the amount or limit of at least $25,000 on account of injury to or death of any one person, and subject to such limit as respects injury or death of one person, of at least $50,000 on account of any one accident resulting in injury to or death of more than one person, and at least $25,000 for damage to property of others, as herein provided, or a binder pending the issuance of such a policy or an existing policy, as defined in RSA 264:14, RSA 264:18, and RSA 264:19.

Workers’ Compensation Insurance

New Hampshire requires most businesses with employees to carry workers’ compensation insurance. The following section of New Hampshire’s labor statute provides some detail about who is and is not considered an employee when it comes to workers’ compensation insurance:

281-A:2

VI. (a) "Employee", with respect to private employment, means any person in the service of an employer subject to the provisions of this chapter under any express or implied, oral or written contract of hire except a railroad employee engaged in interstate commerce whose rights are governed by the Federal Employers' Liability Act. If they elect to be personally covered by this chapter, "employee" includes persons who regularly operate businesses or practice their trades, professions, or occupations, whether individually, or in partnership, or association with other persons, whether or not they hire others as employees.

(b)(1) Subject to the preceding subparagraph, any person, other than a direct seller or qualified real estate broker or agent or real estate appraiser, or person providing services as part of a residential placement for individuals with developmental, acquired, or emotional disabilities, who performs services for pay for an employer, is presumed to be an employee. This presumption may be rebutted by proof that an individual meets all of the following criteria:

(A) The person possesses or has applied for a federal employer identification number or social security number, or in the alternative, has agreed in writing to carry out the responsibilities imposed on employers under this chapter.

(B) The person has control and discretion over the means and manner of performance of the work, in that the result of the work, rather than the means or manner by which the work is performed, is the primary element bargained for by the employer.

(C) The person has control over the time when the work is performed, and the time of performance is not dictated by the employer. However, this shall not prohibit the employer from reaching an agreement with the person as to completion schedule, range of work hours, and maximum number of work hours to be provided by the person, and in the case of entertainment, the time such entertainment is to be presented.

(D) The person hires and pays the person's assistants, if any, and to the extent such assistants are employees, supervises the details of the assistants' work.

(E) The person holds himself or herself out to be in business for himself or herself or is registered with the state as a business and the person has continuing or recurring business liabilities or obligations.

(F) The person is responsible for satisfactory completion of work and may be held contractually responsible for failure to complete the work.

(G) The person is not required to work exclusively for the employer.

Data Breach Insurance

New Hampshire’s data breach notification legislation requires businesses to notify any individual whose personal information has been compromised. The obligation to send notice of data breach raises the possibility that the affected individuals will seek redress in the civil courts. To prepare for such a risk, New Hampshire businesses should take out data breach insurance. 

359-C:20: Notification of Security Breach Required

Any person doing business in this state who owns or licenses computerized data that includes personal information shall, when it becomes aware of a security breach, promptly determine the likelihood that the information has been or will be misused. If the determination is that misuse of the information has occurred or is reasonably likely to occur, or if a determination cannot be made, the person shall notify the affected individuals as soon as possible.

New Hampshire Insurance Resources

New Hampshire Insurance Department
New Hampshire Insurance Department Automobile Insurance Consumer FAQs
New Hampshire Department of Labor Workers’ Compensation Division

General Liability Insurance

The vast majority of New Hampshire companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries. 

General liability insurance is one of the most important types of business insurance your company can purchase.

Business Owner’s Policy

A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.

Commercial Auto Insurance

You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.

Workers’ Compensation Insurance

New Hampshire requires businesses with at least one employee to carry workers’ compensation insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.

Employee Health/Life/Disability Insurance

Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate New Hampshire insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.

Professional Liability Insurance

Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes. 

Professional liability insurance includes errors and omissions (E&O) insurance.

Data Breach Insurance

If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases. 

Cyber Liability Insurance

Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.

Commercial Crime Insurance

Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.

Fiduciary Liability Insurance

Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly. 

Third parties like out-of-company consultants and benefit plan administrators are usually not protected.

Directors and Officers Insurance

Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.

Executive Risk Coverage

Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.