What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Oregon

When hiring employees in Oregon, 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 Oregon. This insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses.

• Required for employers with one or more employees, including part-time workers.
• Must be obtained before employees begin work.
• Helps manage workplace injury risk and supports compliance with state safety standards.

Unemployment Insurance

Oregon employers must also register for unemployment insurance through the Oregon Employment Department.

• Funds unemployment benefits for eligible former employees.
• Requires regular payroll reporting and payment of unemployment taxes.
• Essential for proper payroll setup and employee classification.

Additional Insurance Considerations

• Disability Insurance: Oregon does not require private short-term disability insurance, but employers should be aware of voluntary programs.
• Liability Insurance: While not legally required for hiring, general liability insurance protects businesses against claims related to employee actions or accidents.

Operational Tips

• Confirm insurance coverage before onboarding employees to avoid compliance issues.
• Maintain accurate recordkeeping of insurance policies and employee incidents.
• Integrate insurance compliance with payroll and hiring processes for streamlined operations.

As of 2026, always verify current Oregon Department of Consumer and Business Services (DCBS) requirements to ensure proper insurance coverage when hiring employees.