What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Utah

When hiring employees in Utah, businesses must secure specific types of insurance to remain compliant and protect both the company and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Utah employers with one or more employees. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Ensure coverage begins before employees start work.
• Maintain accurate records of all claims and injuries.
• Renew policies annually and review coverage limits.

Unemployment Insurance

Utah employers are required to pay into the state’s unemployment insurance program. While this is not a direct insurance purchase, it is an operational obligation that funds unemployment benefits for eligible former employees.

• Register with the Utah Department of Workforce Services after hiring.
• Submit quarterly wage reports and pay unemployment taxes timely.

Additional Insurance Considerations

While not legally required, consider these insurance types to support operational stability and employee well-being:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover claims related to hiring, firing, and workplace discrimination.
• Health insurance if offering group health benefits under the Affordable Care Act (ACA).

Operational Tips

• Verify employee classification to ensure proper insurance coverage and tax reporting.
• Integrate insurance premium payments into payroll and bookkeeping systems for accuracy.
• Use automation tools to track insurance renewals, claims, and compliance deadlines.
• Maintain clear documentation of all insurance policies and employee notifications.

As of 2026, regularly check updates from the Utah Labor Commission and the Department of Workforce Services to stay aligned with any changes in insurance requirements or reporting procedures.