What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Oklahoma

When hiring employees in Oklahoma, businesses must secure specific types of insurance to comply with state regulations and protect their operations.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Oklahoma employers who have three or more employees. This insurance covers medical expenses and lost wages if an employee is injured on the job. It helps manage workplace injury risks and ensures compliance with state labor laws.

Unemployment Insurance

Employers in Oklahoma are required to pay into the state unemployment insurance program. While this is not a direct insurance policy to purchase, it is a payroll tax that funds unemployment benefits for eligible former employees. Proper payroll setup and reporting are essential to maintain compliance.

Additional Insurance Considerations

• General liability insurance: While not required by law, it is advisable to protect against third-party claims related to business operations.
• Employer liability insurance: Often included with workers' compensation, it covers legal costs if an employee sues over a work-related injury.
• Health insurance: Depending on the size of your business, you may have obligations under federal laws such as the Affordable Care Act.

Operational Tips

• Verify your workers' compensation coverage with the Oklahoma Workers' Compensation Commission.
• Register for unemployment insurance through the Oklahoma Employment Security Commission.
• Integrate insurance premium payments into your payroll system for efficient recordkeeping and compliance.
• Review insurance requirements periodically, as regulations and thresholds can change.