What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Nebraska

When hiring employees in Nebraska, 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 employers in Nebraska. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities. It also protects the business from lawsuits related to workplace injuries.

• Required for employers with one or more employees.
• Coverage includes medical treatment, disability benefits, and rehabilitation costs.
• Employers must obtain coverage before employees begin work.

Unemployment Insurance

Unemployment insurance is required for employers who meet certain payroll thresholds. This insurance provides temporary financial assistance to employees who lose their jobs through no fault of their own.

• Employers must register with the Nebraska Department of Labor.
• Contributions are based on payroll and experience rating.
• Timely reporting and payment of unemployment taxes are essential.

Additional Insurance Considerations

While not always legally required, other insurance types support operational risk management when hiring employees:

• General liability insurance: Protects against third-party claims of injury or property damage.
• Employment practices liability insurance (EPLI): Covers claims related to wrongful termination, discrimination, or harassment.
• Health insurance: Required for employers with 50 or more full-time employees under federal law, impacting Nebraska businesses.

Operational Tips

• Verify insurance coverage before onboarding employees to avoid compliance issues.
• Maintain accurate payroll and employee records for insurance reporting and audits.
• Consider automation tools to manage insurance filings and payments efficiently.
• Regularly review insurance policies to ensure adequate coverage as your workforce grows.