What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in North Dakota

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

Key Insurance Requirements

• Workers' Compensation Insurance: North Dakota law requires most employers with one or more employees to carry workers' compensation insurance. This coverage provides benefits for employees who suffer work-related injuries or illnesses. It also helps protect the business from potential lawsuits related to workplace injuries.
• Unemployment Insurance: Employers must register with the North Dakota Job Service to pay unemployment insurance taxes. This insurance supports employees who lose their jobs through no fault of their own.
• Employer Liability Insurance: Often included with workers' compensation policies, employer liability insurance covers legal costs if an employee sues over a workplace injury not covered by workers' compensation.

Additional Operational Considerations

• General Liability Insurance: While not legally required, this insurance protects your business from claims of bodily injury or property damage on your premises, which can be important when hiring staff.
• Recordkeeping and Reporting: Maintain accurate records of all insurance policies and employee coverage. North Dakota requires timely reporting and compliance documentation for workers' compensation and unemployment insurance.
• Employee Classification: Properly classify workers as employees or independent contractors to ensure correct insurance coverage and tax treatment.
• Payroll Setup: Integrate insurance premiums and tax withholdings into your payroll system to automate compliance and reduce errors.

As of 2026, confirm your insurance coverage meets North Dakota requirements before onboarding employees to ensure smooth hiring and compliance with state regulations.