As a small business owner, you have a responsibility to care for your employees. On top of offering them an appropriate salary, you’ll have to consider various types of insurance. When it comes to providing coverage for your workers, where do you start?

The kind of insurance you legally have to offer varies from state to state. You may even want to provide non-required coverage as an added benefit. Here’s a list of different types of insurance you can and may have to consider.

Unemployment Insurance

Unemployment insurance doesn’t work like most other forms of coverage, but the law requires it, so it’s worth the mention. The Federal Unemployment Tax Act (FUTA) requires you to pay unemployment taxes based on what your employees earn. Depending on your state, this rate will vary.

Instead of buying through a vendor, you’ll fund unemployment insurance through taxes. If you just started hiring employees, though, you should be aware that you’ll have to start this process.

Health Insurance

When you think of employee benefits, you probably consider health insurance. You may have to provide coverage, depending on your state and the kind of business you run. Even if you’re not required to, though, offering health insurance is a good idea.

Under the Affordable Care Act (ACA), you may qualify for tax credits for providing healthcare. Going above and beyond the requirements, like offering dental insurance, can also improve morale.

Life Insurance

The law doesn’t require you to offer life insurance, but your employees will appreciate it. Providing it will give your workers, especially those with families, some peace of mind about the future. You have a lot of options, too.

Life insurance types vary by factors like coverage and length, as well as cost and payout type. Look at the options in your area and think of your employees’ needs to find the best fit.

Workers’ Compensation

The requirements for workers’ comp vary quite a bit from state to state. You may have to provide it no matter what, or you may only need to if you have enough employees. Check with your state laws to see what you need to do.

In most states, you can get this coverage from private insurers, but a few require you to go through the government.

Disability Insurance

Disability insurance serves as a kind of extension to workers’ comp. It provides payment to employees if they’re unable to work because of a job-related injury or illness. Depending on your location, you may or may not have to provide disability insurance.

Disability insurance comes in two forms — long-term and short-term. While some states require that you offer short-term coverage, nowhere requires long-term disability insurance, though it’s popular. Providing this kind of coverage can improve employee morale, especially if you work in a risky industry.

Balancing Legality, Benefits and Budget

You have a lot of options when it comes to offering insurance to your employees. Consider your legal requirements, what’s available, your budget and how you want to help employees. If you can afford it, going above the legal obligations can be an excellent decision for your business.

Providing competitive insurance benefits improves morale, attracts new workers and inspires loyalty. If nothing else, think of how you’re helping your employees. With all these options, you should have no trouble finding a solution that fits your needs and budget.