New Hampshire construction firms may exclude up to three executives from their workers compensation policies, provided the executives do not actively work on construction sites, under a recent change in statute.
The new exemption from the state’s compulsory workers’ compensation law went into effect on Sept. 14.
The language of the new provision (HB 471) reads in part:
“Any corporation or limited liability company may elect to exclude up to three executive officers or members from the compulsive coverage requirements…. provided that such exclusion shall not apply to any individual, regardless of status or title within a corporation or limited liability company, who is actively engaged in onsite work on any construction site within the state of New Hampshire.”
The New Hampshire Insurance Department is providing information to assist residual market carriers with interpretation of the new law until rules are promulgated by the Department of Labor.
The National Council on Compensation Insurance (NCCI) has established procedures for verifying compliance with the law in cases where the exclusion is sought on policies insured throught the residual market.
For insurance policies beginning or renewing on or after Sept. 14, 2007, the officer/member exclusion is “not available to any person who is actively engaged in onsite work to advance the goal of any construction project at a construction site New Hampshire.” For these purposes, “construction site” means the place where work is done involving the construction classification codes of NCCI.
Sources: New Hampshire Insurance Department
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