What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Kansas

Before hiring employees in Kansas, businesses must secure specific types of insurance to comply with state regulations and protect both the company and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Kansas employers with one or more employees. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Obtain coverage before the first employee starts working.
• Ensure the policy complies with Kansas Department of Labor requirements.
• Keep records of claims and communicate promptly with the insurer.

Unemployment Insurance

Kansas employers must register with the Kansas Department of Labor to pay unemployment insurance taxes. While this is not an insurance policy you purchase directly, it is a required payroll tax to fund unemployment benefits for eligible former employees.

• Register your business for unemployment tax accounts before hiring.
• Report employee wages regularly and remit taxes on time.

Additional Insurance Considerations

While not legally required before hiring, consider these insurance policies to manage operational risks:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover claims related to hiring, discrimination, or wrongful termination.
• Health insurance if you meet the criteria under the Affordable Care Act for offering employee health benefits.

Operational Tips

• Consult with an insurance broker familiar with Kansas employment laws to ensure full compliance.
• Integrate insurance premium payments and reporting into your payroll and bookkeeping systems for accuracy.
• Maintain clear records of all insurance policies and employee coverage statuses for audits and compliance reviews.