What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Georgia

When hiring employees in Georgia, businesses must secure specific types of insurance to remain compliant and protect both the company and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in Georgia. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to job-related activities.

• Required for employers with three or more employees.
• Applies to full-time, part-time, and temporary workers.
• Must be maintained continuously while employees are on payroll.

Unemployment Insurance

Employers must also register for and contribute to unemployment insurance through the Georgia Department of Labor. This system provides benefits to employees who lose their jobs through no fault of their own.

• Employers report wages and pay quarterly taxes.
• Proper payroll systems and recordkeeping facilitate compliance.

Additional Insurance Considerations

• General liability insurance is not required by law but is recommended to protect against third-party claims.
• Disability insurance is not mandatory in Georgia but may be offered voluntarily.
• Ensure proper classification of employees versus contractors to determine insurance obligations accurately.

Operational Tips

• Set up insurance coverage before the first day of employment.
• Work with a licensed insurance agent familiar with Georgia regulations.
• Integrate insurance tracking with payroll and HR systems for efficient compliance.
• Stay updated on any changes in insurance requirements as of 2026.