What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Ohio

When hiring employees in Ohio, businesses must secure specific types of insurance to comply with state requirements and protect their operations.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Ohio employers with one or more employees. This insurance covers medical expenses and lost wages for employees injured on the job. Ensure you:

• Obtain coverage through the Ohio Bureau of Workers' Compensation (BWC) or an authorized private carrier.
• Report payroll and pay premiums based on your industry classification and payroll amounts.
• Maintain accurate employee classification and payroll records for premium calculation and audits.

Unemployment Insurance

Ohio requires employers to participate in the unemployment insurance program. This is administered by the Ohio Department of Job and Family Services (ODJFS). Key operational points include:

• Register for an unemployment insurance account when hiring your first employee.
• File quarterly wage reports and pay unemployment taxes based on taxable wages.
• Keep precise payroll and employee records to support reporting and compliance.

Additional Insurance Considerations

While not always required by law, these types of insurance support operational risk management:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover claims related to hiring, discrimination, or wrongful termination.
• Health insurance if your business meets federal requirements under the Affordable Care Act (typically 50 or more full-time employees).

Operational Tips

• Set up your insurance policies before onboarding employees to avoid compliance gaps.
• Automate payroll and reporting systems to streamline tax and insurance premium filings.
• Review your insurance coverage annually to adjust for changes in employee count or business operations.