What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Oregon

Before hiring employees in Oregon, businesses must secure specific insurance coverages to comply with state regulations and protect their operations.

Workers' Compensation Insurance

Oregon law requires most employers with one or more employees to carry workers' compensation insurance. This coverage provides benefits to employees who suffer work-related injuries or illnesses.

• Obligation: Obtain coverage through the Oregon Workers' Compensation Division or an authorized insurance carrier.
• Scope: Applies to full-time, part-time, and seasonal employees.
• Operational Tip: Ensure timely reporting of workplace injuries and maintain proper recordkeeping to comply with claims procedures.

Unemployment Insurance

Employers in Oregon must register for unemployment insurance through the Oregon Employment Department.

• Purpose: Provides temporary benefits to employees who lose their jobs through no fault of their own.
• Action Step: Set up payroll systems to withhold and remit unemployment insurance taxes accurately.
• Compliance: Regular reporting and payment of unemployment taxes are required to avoid penalties.

Additional Considerations

• General Liability Insurance: While not legally required, it is advisable to protect your business against third-party claims.
• Employment Practices Liability Insurance (EPLI): Consider this to cover claims related to employee rights violations.
• Recordkeeping and Reporting: Keep detailed employee records and insurance documentation to ensure ongoing compliance.

As of 2026, verify insurance requirements regularly as regulations may change. Proper insurance setup supports smooth hiring operations and mitigates business risks in Oregon.