What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Wisconsin

When hiring employees in Wisconsin, 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 employers in Wisconsin. It provides coverage for medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Applies to businesses with one or more employees.
• Must be obtained before employees begin work.
• Helps manage workplace injury risks and compliance requirements.

Unemployment Insurance

Employers in Wisconsin are required to pay into the Unemployment Insurance (UI) program. While this is not a direct insurance policy to purchase, it involves payroll tax contributions that fund unemployment benefits for eligible former employees.

• Register with the Wisconsin Department of Workforce Development (DWD) to report wages and pay UI taxes.
• Ensure proper payroll systems are in place for accurate reporting and tax payment.

Additional Insurance Considerations

Though not legally required, consider the following to support operational stability and employee well-being:

• General Liability Insurance: Protects against third-party claims related to business operations.
• Health Insurance: For businesses with 50 or more full-time employees, the Affordable Care Act mandates offering health coverage.
• Disability Insurance: While not mandatory in Wisconsin, some employers opt to provide short-term or long-term disability benefits.

Operational Tips

• Set up proper bookkeeping and payroll systems to manage insurance premiums and tax filings efficiently.
• Maintain thorough recordkeeping of employee classifications and insurance coverage to ensure compliance during audits.
• Utilize automation tools to track insurance renewal dates and reporting deadlines.

As of 2026, stay updated with the Wisconsin Department of Workforce Development and the Department of Insurance for any changes to insurance requirements related to hiring employees.