What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Oklahoma

When hiring employees in Oklahoma, businesses must secure specific insurance coverage to comply with state regulations and protect their operations.

Workers' Compensation Insurance

Oklahoma law requires most employers with one or more employees to carry workers' compensation insurance. This coverage provides benefits to employees who suffer work-related injuries or illnesses. It helps cover medical expenses, lost wages, and rehabilitation costs.

• Who must have it: Most businesses with employees, including full-time, part-time, and seasonal workers.
• Exemptions: Sole proprietors and partners without employees may be exempt but should verify based on their specific business structure.
• Operational tip: Obtain coverage through the Oklahoma Workers' Compensation Commission or a private insurer authorized in the state.

Unemployment Insurance

Employers in Oklahoma are required to pay into the state unemployment insurance program. While not an insurance policy you purchase directly, this tax funds unemployment benefits for eligible former employees.

• Registration: Register with the Oklahoma Employment Security Commission to report wages and pay unemployment taxes.
• Payroll integration: Ensure your payroll system accounts for unemployment insurance tax withholding and reporting.

Additional Insurance Considerations

While not legally required, consider the following to manage risk and support compliance:

• General liability insurance: Protects against third-party claims related to your business operations.
• Employment practices liability insurance (EPLI): Covers claims related to workplace discrimination or wrongful termination.
• Health insurance: If you have 50 or more full-time employees, comply with federal Affordable Care Act requirements.

Operational Recommendations

• Maintain accurate records: Keep detailed documentation of insurance policies, employee classifications, and payroll taxes.
• Review annually: Insurance requirements and rates may change; review your coverage yearly to stay compliant.
• Consult your insurance provider: Work with licensed agents familiar with Oklahoma regulations to tailor coverage to your business size and industry.