Understanding the Types of Insurance You’ll Need Before Hiring Employees

Insurance is always a good backup plan for when things go wrong. However, there are different types of insurance that do different things. Let us take a very close look at understanding the types of insurance you’ll need before hiring employees.

Unemployment Insurance

To start things off, unemployment is a very common type of insurance. This provides relief for workers who have been laid off for one reason or another. If your company is hiring for more than five months at a time, you’ll need to set up unemployment insurance. Different states have different definitions of unemployment, so check with your district to see what the standard is.

Liability Insurance

Next in line, professional liability insurance is a must. The workplace can be a hazardous environment, and liability insurance protects against injuries and accidents. Depending on your type of business, liability insurance can take different forms. When employees want to take matters to court, you’ll be covered even in the worst-case scenario.

Disability Insurance

In the grand scheme of things, disability insurance should not be overlooked either. Even if your new employees don’t seem to have any disabilities, you never really know. You’ll also be better prepared for the future when disabilities could pop up. Disability insurance can cover hearing loss, blindness, prosthetic limbs, and more.

Workers’ Compensation

Last but not least, workers’ compensation is a fantastic way to protect your employees. As discussed above, injuries are bound to happen sooner or later. You want to make sure your workers aren’t debilitated by these injuries and that they can continue their normal lifestyle. Workers’ compensation is a mutual relationship that benefits both you and your employees.

When all is said and done, these are a couple of ways to understand the types of insurance you’ll need before hiring employees. Insurance should be settled before the employees come onboard. This will smooth out the hiring process and make your workplace more productive.