What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Missouri

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

Missouri Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Missouri employers with five or more employees. It covers medical expenses and lost wages for employees injured on the job. This insurance helps manage workplace injury risks and ensures compliance with state laws.

Unemployment Insurance

Employers in Missouri are required to pay into the state's unemployment insurance program. While this is not a policy you buy directly, it involves registering with the Missouri Department of Labor and Industrial Relations and reporting payroll to fund unemployment benefits for eligible former employees.

Additional Insurance Considerations

• General liability insurance: While not legally required, it is highly recommended to protect your business from third-party claims.
• Disability insurance: Missouri does not require short-term disability insurance, but offering it can support employee retention.
• Health insurance: Depending on the size of your business, the Affordable Care Act may require you to offer health coverage to employees.

Operational Steps Before Hiring

• Register for workers' compensation coverage through a licensed insurer or the Missouri Workers' Compensation Fund.
• Register with the Missouri Department of Labor for unemployment tax reporting.
• Maintain accurate payroll and employee records to support insurance reporting and compliance.
• Consider consulting with an insurance broker to tailor coverage to your business needs.

As of 2026, ensure your insurance policies are active and updated before onboarding new employees to avoid penalties and operational disruptions.