What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Nebraska

When hiring employees in Nebraska, it is essential to secure the proper insurance coverage to comply with state regulations and protect your business.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Nebraska employers. This insurance covers medical expenses and lost wages for employees injured on the job. It protects both your employees and your business from potential lawsuits related to workplace injuries.

• Required for employers with one or more employees.
• Coverage must be obtained before employees begin work.
• Policies are typically purchased through private insurance carriers or the Nebraska Workers' Compensation Court.

Unemployment Insurance

Unemployment insurance is required by federal and state law. Nebraska employers must register with the Nebraska Department of Labor to pay unemployment taxes. This insurance provides temporary benefits to employees who lose their jobs through no fault of their own.

Additional Insurance Considerations

• Disability insurance: Nebraska does not require private disability insurance, but you may choose to offer it as a benefit.
• Liability insurance: While not legally required, general liability insurance is recommended to protect your business from third-party claims.

Operational Tips

• Confirm your workers' compensation coverage before onboarding employees to avoid penalties.
• Maintain accurate payroll records to ensure correct unemployment tax reporting.
• Review your insurance policies annually to adjust for changes in employee count or business operations.
• Consider consulting with insurance providers who specialize in Nebraska business requirements to optimize coverage and costs.