What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Virginia

Before hiring employees in Virginia, it is essential for businesses to secure specific insurance coverage to comply with state regulations and protect both the business and its workforce.

Workers' Compensation Insurance

Virginia law requires most employers with three or more employees to carry workers' compensation insurance. This coverage provides benefits to employees who suffer work-related injuries or illnesses. It is mandatory before hiring to ensure compliance and protect your business from potential claims.

Unemployment Insurance

Employers in Virginia must register with the Virginia Employment Commission for unemployment insurance. This coverage supports employees who lose their jobs through no fault of their own. Setting up unemployment insurance is a critical step before onboarding staff and managing payroll taxes.

Additional Considerations

• General Liability Insurance: While not always legally required, it is advisable to protect your business against third-party claims.
• Disability Insurance: Virginia does not mandate disability insurance, but consider it as part of your employee benefits package.
• Recordkeeping and Reporting: Maintain accurate insurance documentation and report employee information as required by state agencies.

As of 2026, ensure your business registration and insurance policies are up to date before hiring to avoid penalties and streamline payroll and compliance processes.