What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Kansas

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

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Kansas employers with one or more employees. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Required for all private employers with one or more employees, including part-time workers.
• Must be obtained before or immediately upon hiring employees.
• Ensures compliance with Kansas Department of Labor requirements.

Unemployment Insurance

Employers in Kansas are also required to pay into the state unemployment insurance program. This is not an insurance policy the employer buys but a tax paid to the Kansas Department of Labor to fund unemployment benefits for eligible former employees.

• Applies to employers with one or more employees working in Kansas.
• Requires timely quarterly reporting and tax payments.

Optional but Recommended Insurance

While not legally required, consider these insurance types to manage risks associated with hiring:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover claims related to wrongful termination, discrimination, or harassment.
• Health insurance if offering employee benefits, ensuring compliance with federal regulations.

Operational Considerations

To stay compliant and efficient when hiring employees in Kansas:

• Register with the Kansas Department of Labor for unemployment insurance accounts.
• Secure workers' compensation insurance through a licensed provider or the state fund.
• Maintain accurate payroll and employee records to support insurance reporting and claims.
• Automate insurance premium payments and reporting where possible to reduce administrative burden.

As of 2026, always verify current requirements with the Kansas Department of Labor to ensure full compliance with insurance obligations when hiring.