Updated · Apr 2026 · 3 min read
What actually changes when you hire your first W-2?
Solo to one-employee is the single biggest jump in commercial insurance complexity. Six new coverage decisions, two state filings, and a workers comp policy that's mandatory in both KS and MO above threshold. Tick what applies and we'll point you at what moves first.
Your score
0/8
Nothing checked yet.
Tick what applies, we'll tell you which side of the line you're on.
Tick what applies
The triggers.
Check what applies, we'll tell you which side of the line you're on.
If you cross.
Workers comp becomes mandatory
Kansas requires workers comp for any business with employees (with narrow exceptions). Missouri requires it at 5+ but most reputable carriers and contracts demand it from employee one. Penalties for going bare are punitive — daily fines plus full claim exposure.
EPLI exposure starts immediately
Wrongful termination, discrimination, and harassment claims don't require multiple employees to trigger. EPLI ($5k–$15k/yr) is cheap insurance the day you hire your first.
Auto liability extends to non-owned vehicles
If your employee drives their own car for work, your commercial auto needs Hired & Non-Owned Auto. A $20–$50/yr endorsement that's missed on most solo policies.
Premium audits become annual
Workers comp and GL premium are based on payroll. Year-end audits true up the deposit premium against actual payroll — surprises here are entirely avoidable with quarterly check-ins.
Or you're not here if ,
- Sole proprietor — owner only, no W-2 hires planned in the next 12 months
- All workers are properly classified 1099 contractors with their own coverage
- You're a household employer (nanny, housekeeper) — different policy structure
Three doors.
Workers Compensation
the product page
How workers comp premium is calculated, what KS and MO require, and how the audit process works. Includes the cheapest path to bind a small first-hire policy.
See the product
Quote the full first-hire stack
30-min call · we'll quote workers comp + EPLI + auto endorsement
We'll quote workers comp, add EPLI, update auto for hired & non-owned, and review your GL for the new exposure. Bound the same week you make the offer.
Book the call
Coverage Hub
the full commercial menu
Still solo? The coverage hub explains the lines that matter while you're a sole proprietor — GL, property, professional, cyber — and circle back when you're ready to hire.
Coverage hub