Hiring This Season? Here’s What It Means for Your Business Insurance
Congratulations, your business is growing, and you’re ready to bring on your first employee! That’s an exciting milestone. But along with the excitement comes an important question: Is your business insurance keeping up?
Adding employees changes your risk, and a few key coverages should be on your radar before that first hire. Let’s walk through what you need to know.
Workers’ Compensation: Required in Indiana (and Non-Negotiable)
If you’re hiring in Indiana, Workers’ Compensation insurance isn’t optional—it’s required by law. But beyond compliance, it’s one of the most important protections your business can have.
Workers’ compensation has two essential components:
- Injury coverage: This covers medical bills and lost wages if an employee is hurt on the job. In Indiana, this coverage is unlimited, meaning the policy pays out until your employee has fully recovered, with no cap on benefits.
- Liability protection: If an employee, or their family member, files a lawsuit alleging negligence related to a workplace injury, this portion of the policy covers your defense costs and potential damages.
If you have an employee who gets hurt and you’re either uninsured or underinsured, your business is on the hook for those costs, and that can be financially devastating. Get this coverage in place before day one.
Employment Practices Liability (EPLI): Because Accusations Happen
As an employer, you’re responsible for maintaining a safe and respectful workplace. Employment Practices Liability Insurance protects your business against claims related to:
- Discrimination
- Wrongful termination
- Workplace harassment
Here’s the critical thing to understand, you don’t have to actually do anything wrong for a claim to be filed against you. EPLI coverage steps in to cover your legal defense costs, which can be significant even when you’re fully in the right. This is an important endorsement a small business owner can add to their policy. It’s one of those coverages you hope you never need… but you’re glad you have it if you do.
Employee Benefits Liability: Protection from Honest Mistakes
If you’re making any deductions from an employee’s paycheck, think retirement plan contributions, health benefits, child support withholdings, or tax payments, Employee Benefits Liability coverage is worth serious consideration.
If those funds aren’t remitted correctly and on time or something is simply miscalculated, you as the employer can be held responsible for any financial losses your employee experiences as a result. This is an inexpensive endorsement that can protect you from a costly but entirely human error.
Not Sure Where to Start? Let’s Talk.
If you’re about to hire your first employee (or your tenth), now is the best time to make sure your insurance is aligned with your growth. And if you’re not sure where to start—that’s exactly what we’re here for.
Call us at 765-838-2781 or schedule a meeting with Jenna www.calendly.com/jisch
We’ll walk you through exactly what you need (and what you don’t), so you can grow your team with confidence.
Because when your business grows—your protection should grow with it too. We’re here to make insurance easy.