Short answer: Rhode Island requires employers to carry workers' compensation. The state's Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI) programs are funded entirely by employees. Employers withhold the contribution from wages and remit it quarterly, so there's no separate disability policy to buy. Business vehicles need at least 25/50/25 liability, or a $75,000 combined single limit.
This guide is general information for Rhode Island employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
Details: is workers comp required in Rhode Island.
2. TDI/TCI withholding
Per the RI Department of Labor and Training, TDI and TCI are employee-funded. Employers withhold the contribution from covered wages and remit it quarterly to the Employer Tax Unit. The rate and wage base change annually; see the DLT's quick reference.
3. Business vehicles
Under R.I. Gen. Laws §31-32-24, the minimum is $25,000/$50,000 bodily injury and $25,000 property damage, or a $75,000 combined single limit. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage Rhode Island makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, Rhode Island employers are covered as soon as you have any covered employee. The 2026 taxable wage base is $30,800 ($32,300 for the highest tax group) per employee. Experience-rated employers pay 0.69% to 9.19%, and new employers start at a base rate of 1.00% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than Rhode Island law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Rhode Island.
Frequently asked questions
Do Rhode Island employers buy disability insurance?
No separate policy is needed. TDI/TCI is employee-funded through payroll withholding that employers remit.
What's Rhode Island's minimum auto liability?
25/50/25, or a $75,000 combined single limit.
Do Rhode Island employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $30,800 ($32,300 for the highest tax group), and new employers start at 1.00%.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.