What employee insurance am I required to provide for my employees?
Often, new business owners and small business owners get confused as to what is required when hiring employees.
The only insurance required for employees is workers compensation insurance. While standards vary somewhat, for the purposes of this article and protection of your business, when you hire an employee, it’s important to purchase workers compensation insurance.
Workers compensation insurance will cover medical expenses and at least some partial wages if an employee is injured on the job. This protects the employee from financial disaster from a job related injury.
In return, the employer is protected from being sued by that employee for the injury. Obviously, this is a very generic overview and should be reviewed with a licensed insurance professional regarding your specific business. Some states may require disability insurance as well. Your insurance professional will guide you to the specific requirements of your state.
Other employee insurance programs, or employee benefits, are at the discretion of the business. When a business starts an employee benefit program, medical insurance is usually the cornerstone of the benefits package. The health insurance benefit may include dental insurance and vision insurance as supplements to the health insurance. Group life insurance and group disability coverage may also be offered. Costs may be shared between employees and the business for these benefits.
A growing business may want to consider adding group insurance benefits. While not required, a good benefits package will help in recruiting and retaining good employees for your business. Your licensed insurance professional can work with you in determining the requirements of your state for workers compensation and also developing an employee insurance benefits program.