Insurance Requirements for Employers

Businesses with employees are required by law to pay for certain types of insurance: workers' compensation insurance, unemployment insurance, and, depending on where the business is located, disability insurance.

Workers' Compensation Insurance

Businesses with employees are required to carry Workers' Compensation Insurance coverage through a commercial carrier, on a self-insured basis, or through the state Workers' Compensation Insurance program. Visit your state's Workers' Compensation Office more information on your state's program

Unemployment Insurance Tax

Businesses with employees are required to pay unemployment insurance taxes under certain conditions. If your business is required to pay these taxes, you must register your business with your state's workforce agency. The State Taxes page includes links to your state's agency.

Disability Insurance

Some states require employers to provide partial wage replacement insurance coverage to their eligible employees for non-work related sickness or injury. Currently, if your employees are located in any of the following states, you are required to purchase disability insurance:

• California - Employment Development Department
• Hawaii - Unemployment Insurance Division
• New Jersey - Dept of Labor and Workforce Development
• New York - New York State Workers' Compensation Board
• Puerto Rico - Departamento del Trabajo y Recursos Humanos / Department of Labor and Human Resources
• Rhode Island - Rhode Island Dept of Labor and Training

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