What insurance is required before hiring employees?

Required Insurance Before Hiring Employees in Wyoming

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

Workers' Compensation Insurance

Wyoming law mandates that most employers carry workers' compensation insurance. This coverage provides medical benefits and wage replacement to employees injured on the job.

• Who must have it: Employers with one or more employees, including part-time workers, generally must obtain workers' compensation coverage.
• Operational tip: Obtain coverage through a private insurer or the Wyoming Workers’ Compensation Division. Ensure timely registration and premium payments to avoid penalties.

Unemployment Insurance

Employers in Wyoming must register for unemployment insurance with the Wyoming Department of Workforce Services.

• Purpose: This insurance funds unemployment benefits for eligible former employees.
• Action step: Register your business and report payroll regularly to calculate accurate unemployment insurance taxes.

Other Recommended Insurance

While not legally required before hiring, consider the following to manage operational risks effectively:

• General Liability Insurance: Protects against third-party claims of bodily injury or property damage.
• Employment Practices Liability Insurance (EPLI): Covers claims related to wrongful termination, discrimination, or harassment.
• Commercial Auto Insurance: Required if employees will drive company vehicles.

Additional Operational Considerations

• Employee Classification: Correctly classify workers as employees or independent contractors to ensure proper insurance coverage and tax compliance.
• Recordkeeping: Maintain thorough records of insurance policies, employee coverage status, and payroll for reporting and audits.
• Payroll Integration: Use payroll systems that integrate insurance tax calculations and reporting to streamline compliance.

As of 2026, always verify insurance requirements with the Wyoming Department of Workforce Services and consult with insurance providers to ensure your business meets all operational obligations before hiring employees.