What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Ohio

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

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Ohio 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.

• Ensure timely registration with the Ohio Bureau of Workers' Compensation (BWC).
• Maintain accurate payroll records to determine premium calculations.
• Renew coverage annually and report any changes in employee count or payroll.

Unemployment Insurance

Ohio requires employers to pay unemployment insurance taxes to fund benefits for employees who lose their jobs through no fault of their own.

• Register with the Ohio Department of Job and Family Services (ODJFS) for unemployment tax purposes.
• Submit quarterly wage reports and tax payments based on taxable payroll.
• Maintain proper employee classification to avoid penalties.

Additional Insurance Considerations

While not legally required, consider the following to support operational risk management:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover claims related to hiring, discrimination, or wrongful termination.
• Health insurance compliance under federal laws if your business meets applicable size thresholds.

Operational Tips

• Automate insurance premium payments and reporting to ensure compliance.
• Keep detailed records of all insurance policies and employee classifications.
• Review insurance coverage annually to adjust for workforce changes and regulatory updates.