What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Louisiana

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

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in Louisiana who have 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.

• Required for all private employers with one or more employees.
• Coverage must be obtained before the first employee starts work.
• Helps manage workplace injury risks and supports compliance with state labor laws.

Unemployment Insurance

Employers must register with the Louisiana Workforce Commission to contribute to the unemployment insurance program. While this is not traditional insurance purchased from a private carrier, it is a mandatory state program funded through employer payroll taxes.

• Register before hiring employees to ensure proper payroll tax withholding and reporting.
• Supports employees who lose jobs through no fault of their own.

Other Recommended Insurance

Although not required by law before hiring, consider these insurance types to support business operations and employee safety:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance to cover claims related to workplace discrimination or wrongful termination.
• Health insurance if offering employee benefits, complying with federal regulations.

Operational Considerations

Ensure proper recordkeeping of insurance policies and compliance documentation. Integrate insurance requirements into your hiring process and payroll setup to streamline ongoing compliance.

As of 2026, always verify insurance requirements with the Louisiana Workforce Commission and the Office of Workers’ Compensation Administration to stay current with any regulatory changes.