What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Wisconsin

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

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in Wisconsin. This coverage provides benefits to employees who suffer work-related injuries or illnesses. It helps cover medical expenses and lost wages, reducing the risk of costly lawsuits.

• Applies to businesses with one or more employees, including part-time workers.
• Must be obtained before employees begin work.
• Employers must post a notice about workers' compensation rights at the workplace.

Unemployment Insurance

Employers in Wisconsin are required to register for and pay unemployment insurance taxes. This insurance funds temporary benefits for workers who lose their jobs through no fault of their own.

• Register with the Wisconsin Department of Workforce Development (DWD) after hiring your first employee.
• File quarterly wage reports and pay unemployment taxes on employee wages.

Additional Insurance Considerations

While not legally required, consider the following insurance types to support your workforce and business operations:

• General liability insurance to protect against third-party claims.
• Disability insurance, which some employers voluntarily provide to supplement workers' compensation.
• Health insurance obligations may apply under federal laws such as the Affordable Care Act, depending on your business size.

Operational Tips

• Work with a licensed insurance agent familiar with Wisconsin requirements to ensure proper coverage.
• Keep detailed records of insurance policies, employee classifications, and payroll to support compliance audits.
• Automate insurance premium payments and reporting where possible to avoid lapses in coverage or penalties.

As of 2026, regularly review insurance requirements and updates from the Wisconsin Department of Workforce Development and the Office of the Commissioner of Insurance to maintain compliance.