# Insurance When You Hire Your First Employee
Hiring your first employee is a milestone — and a legal turning point. The moment you have staff, most states require you to carry workers' compensation insurance, and you take on new responsibilities as an employer. Getting this in place before day one keeps you compliant and protects both you and the people who work for you. Here's what changes and how to cover it.
What Changes at This Moment
An employee who is hurt on the job needs medical care and lost wages, and you as the employer are on the hook. Workers' compensation is the coverage that pays those costs and, in exchange, generally protects you from being sued directly for the injury. Most states mandate it once you have employees — thresholds and rules vary by state, so confirm your specific requirement. You may also face new exposure to employment-related claims.
Which Coverages to Review or Add
- Workers' Compensation. Pays medical bills and a portion of lost wages for job-related injuries; required in most states once you hire. See Workers' Compensation Insurance.
- General Liability, if you don't already carry it, for third-party claims. See General Liability Insurance.
- Commercial Auto with hired/non-owned coverage if employees drive for you. See Commercial Auto Insurance.
- Employment Practices Liability (EPLI) for claims like wrongful termination or harassment, as your team grows.
- A Business Owners Policy (BOP) to anchor property and liability. See Business Owners Policy (BOP).
Common Gaps New Employers Miss
- Waiting to buy workers' comp until after someone is hired — coverage should be in force from day one.
- Misclassifying employees as contractors to skip coverage, which can backfire in an audit or claim.
- Forgetting that owners and family members may be includable or excludable depending on state rules.
- No hired/non-owned auto coverage when employees run errands in their own cars.
- Ignoring employment-practices exposure as headcount grows.
How an Independent Agency Helps
Workers' comp pricing and rules vary widely by state, job class, and carrier. Because BNW Services (dba InsureToday24) is independent, we shop your class codes and payroll across multiple markets to find a fair rate, and we make sure your comp, liability, and auto coverage all line up before your new hire clocks in. Read Why Use an Independent Insurance Agent.
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Bringing on your first hire? Call or text (573) 594-5148 — Lucy can start your quote 24/7 — or begin at insuretoday24.com.
References
1. Insurance Information Institute — Workers compensation insurance — https://www.iii.org/article/what-workers-compensation-insurance
2. National Association of Insurance Commissioners — Consumer resources — https://content.naic.org/consumer.htm
3. Investopedia — Workers' Compensation — https://www.investopedia.com/terms/w/workers-compensation.asp
4. USA.gov — Hiring and managing employees — https://www.usa.gov/hire-manage-employees
5. Consumer Financial Protection Bureau — https://www.consumerfinance.gov
Related
- Workers' Compensation Insurance (Missouri)
- General Liability Insurance
- Business Owners Policy (BOP)
- Insurance When You Start a Business
- Why Use an Independent Insurance Agent
Watch
- Workers Comp Explained — by *The Coyle Group - Business Insurance*
- What is Workers' Compensation? — by *The Massachusetts Insurance Channel*