What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Nebraska

Before hiring employees in Nebraska, it is essential to secure the appropriate insurance coverage to comply with state regulations and protect your business operations.

Key Insurance Requirements

• Workers' Compensation Insurance: Nebraska law requires most employers with one or more employees to carry workers' compensation insurance. This coverage protects employees who suffer work-related injuries or illnesses by covering medical expenses and lost wages. It also shields the business from potential lawsuits related to workplace injuries.
• Unemployment Insurance: Employers must register with the Nebraska Department of Labor to provide unemployment insurance. This is a state-managed program funded by employer payroll taxes, which provides temporary benefits to eligible workers who lose their jobs through no fault of their own.
• Employer Liability Insurance: Often included with workers' compensation policies, this insurance covers legal costs if an employee sues for job-related injuries not covered by workers' compensation.

Additional Insurance Considerations

• General Liability Insurance: While not legally required, general liability insurance is recommended to protect against third-party claims of bodily injury or property damage occurring on business premises.
• Commercial Auto Insurance: If employees will use vehicles for business purposes, ensure your commercial auto insurance covers these activities.
• Health Insurance: As of 2026, businesses with 50 or more full-time employees must comply with federal Affordable Care Act requirements regarding employee health insurance offerings.

Operational Tips

• Register for a Nebraska Employer Account Number with the Department of Labor before hiring employees to manage unemployment insurance reporting and tax payments.
• Maintain accurate payroll records for insurance audits and compliance reporting.
• Review insurance policies annually to ensure coverage matches your current workforce size and business activities.
• Consider automation tools for payroll and insurance premium calculations to streamline compliance and reduce errors.