What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Utah

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

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Utah employers who have 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. Ensuring timely registration and maintaining coverage helps avoid penalties and supports employee safety.

Unemployment Insurance

Utah employers are required to pay into the state's unemployment insurance program. This provides temporary benefits to employees who lose their jobs through no fault of their own. Employers must register with the Utah Department of Workforce Services and submit regular payroll reports for accurate tax calculation.

Additional Insurance Considerations

• Disability Insurance: While not mandatory in Utah, some employers choose to offer short-term or long-term disability insurance as part of employee benefits.
• Liability Insurance: General liability insurance is not required by state law but is recommended to protect the business from claims related to employee actions or workplace incidents.

Operational Tips

• Set up automated payroll systems to accurately calculate and remit workers' compensation and unemployment insurance premiums.
• Maintain thorough recordkeeping of insurance policies, employee classifications, and payroll reports to ensure compliance during audits.
• Review insurance coverage annually to adjust for changes in employee count or job roles.