What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Oregon

When hiring employees in Oregon, businesses must secure specific insurance coverage to comply with state regulations and protect both the company and its workforce.

Workers' Compensation Insurance

Oregon law requires all employers with one or more employees to carry workers' compensation insurance. This insurance covers medical costs and lost wages for employees who suffer work-related injuries or illnesses. It also protects employers from potential lawsuits related to workplace injuries.

• Obtain coverage through the Oregon Workers' Compensation Division or a private insurer authorized in Oregon.
• Ensure timely reporting of workplace injuries to maintain compliance and proper claims processing.
• Keep accurate records of workplace injuries and insurance claims as part of your operational recordkeeping.

Unemployment Insurance

Employers must register with the Oregon Employment Department to pay unemployment insurance taxes. This insurance provides temporary benefits to employees who lose their jobs through no fault of their own.

• Set up payroll systems to withhold and remit unemployment insurance taxes accurately.
• Maintain detailed payroll records to support tax reporting and compliance.

Additional Considerations

• Employer Liability Insurance: While not mandatory, consider obtaining employer liability insurance to cover legal costs related to employee injury claims that exceed workers' compensation coverage.
• Health Insurance: If your business has 50 or more full-time employees, federal regulations require offering health insurance under the Affordable Care Act. Oregon also has state-specific health coverage programs to explore.
• Employee Classification: Correctly classify workers as employees or independent contractors to ensure proper insurance coverage and tax compliance.

As of 2026, regularly review your insurance policies and payroll systems to stay compliant with any updates in Oregon’s employment insurance requirements.