Do businesses need workers compensation insurance before hiring?

Workers Compensation Insurance Requirements Before Hiring in Ohio

In Ohio, businesses generally need to secure workers compensation insurance before hiring employees. This insurance is crucial for covering medical expenses and lost wages if an employee is injured on the job.

When Workers Compensation Insurance Is Required

• Number of Employees: Ohio requires most employers with one or more employees to carry workers compensation insurance.
• Type of Business: Certain industries may have specific rules, but generally, all employers must comply.
• Exceptions: Sole proprietors, partners, and certain family members may be exempt, but it’s important to verify based on your business structure.

Operational Steps Before Hiring

• Obtain Coverage: Contact the Ohio Bureau of Workers’ Compensation (BWC) or an authorized agent to purchase a policy.
• Verify Compliance: Ensure your policy is active before onboarding employees to avoid penalties.
• Recordkeeping: Maintain accurate records of your workers compensation policy and employee details for reporting and audits.

Related Operational Considerations

• Payroll Setup: Incorporate workers compensation premiums into your payroll expenses.
• Employee Classification: Correctly classify employees to ensure accurate premium calculations.
• Reporting Requirements: Submit necessary reports to BWC regarding your workforce and payroll changes.

As of 2026, securing workers compensation insurance before hiring is a mandatory operational step for Ohio businesses to ensure compliance and protect both employees and the company.