Small contractors in New Hampshire are facing a serious increase in their Workers' Compensation insurance premiums, due to a new law that went into effect in September. This new statute requires that anyone working on a constuction site has to be covered by Workers' Compensation insurance (or approved self-insurance). Many small contractors have routinely exempted the principal members of their LLC from coverage, covering only subcontractors. This reduces premium charges by excluding remuneration costs for those principal members from the premium calculations.
But the new law requires that everyone working on the jobsite be covered--and insurance producers are scrambing to let their LLC construction clients know about the change. Somehow the bill flew under the radar screens of many small business groups, so small construction companies impacted by the change are just now voicing their objections, as the financial impact becomes clear.
The law clarifies a grey area that exists in many states, but it is certainly going to cause quite a few financial shocks to small companies in the Granite State as their Workers' Comp audits are done.