What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Missouri

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

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Missouri employers with five or more employees. This insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses.

• Businesses must obtain coverage before employees begin work.
• Failure to carry workers' compensation can result in penalties and legal liabilities.
• Coverage requirements may vary for agricultural employers or domestic workers.

Unemployment Insurance

Employers in Missouri are required to register for unemployment insurance through the Missouri Department of Labor. This insurance funds unemployment benefits for eligible former employees.

• Employers must report new hires and pay unemployment taxes regularly.
• Accurate payroll recordkeeping supports proper tax calculation and reporting.

Other Insurance Considerations

While not legally required, some businesses choose to carry additional insurance to support hiring and operational stability:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance to cover claims related to workplace discrimination or wrongful termination.

Operational Tips

• Verify your business classification and employee count to determine insurance obligations.
• Use automated payroll systems to track employee status and ensure timely tax payments.
• Maintain thorough records of insurance policies and employee coverage for compliance audits.
• Consult with licensed insurance providers familiar with Missouri regulations to select appropriate coverage.