What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Oklahoma

Before hiring employees in Oklahoma, it is essential for businesses to secure the appropriate insurance coverage to comply with state regulations and protect the company.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Oklahoma employers with one or more employees. This insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses. Ensuring compliance with workers' compensation requirements helps avoid penalties and supports employee safety management.

Unemployment Insurance

Oklahoma employers must register with the Oklahoma Employment Security Commission to pay unemployment insurance taxes. While not a traditional insurance policy, unemployment insurance is a state-mandated program that provides temporary benefits to eligible unemployed workers. Proper payroll setup and tax reporting are required to maintain compliance.

Employer Liability Insurance

While not always legally required, employer liability insurance often accompanies workers' compensation policies. This coverage protects the business from lawsuits related to workplace injuries or illnesses that workers' compensation does not cover.

Additional Insurance Considerations

• General liability insurance: Protects against third-party claims such as bodily injury or property damage occurring on business premises.
• Commercial auto insurance: Required if employees use company vehicles.
• Health insurance: Applicable for businesses with 50 or more full-time employees under federal regulations, impacting payroll and benefits administration.

Operational Steps Before Hiring

• Obtain workers' compensation insurance from a licensed insurer or through the state fund.
• Register with the Oklahoma Employment Security Commission for unemployment insurance tax withholding.
• Set up proper payroll systems to handle insurance premiums and tax reporting accurately.
• Maintain records of insurance policies and employee classifications for compliance audits.

As of 2026, staying updated on insurance requirements and maintaining proper coverage is critical for smooth hiring operations and regulatory compliance in Oklahoma.