Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.

Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).

In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).

An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.

In New Hampshire, workers' compensation insurance is mandatory for all employers, with very few exceptions. This insurance provides benefits to employees who are injured on the job or suffer from work-related illnesses, covering medical expenses, a portion of lost wages, and death benefits for dependents in the case of a work-related fatality. New Hampshire's workers' compensation system operates under the 'exclusive remedy' provision, meaning that for employers who carry the required insurance, employees are generally barred from suing the employer for work-related injuries or illnesses. Instead, they must seek compensation through the workers' compensation system. Employers who fail to provide workers' compensation insurance may face penalties and are considered 'nonsubscribers,' leaving them open to personal injury lawsuits from employees who are injured on the job. These regulations are outlined in the New Hampshire Revised Statutes Annotated (RSA) under RSA 281-A.