Idaho Workers’ Compensation Insurance

All Idaho employers with one or more employees must have workers’ compensation insurance. This requirement applies for full-time, part-time, seasonal and occasional employees.¹

Contractors and subcontractors may also be considered employees according to Idaho workers’ compensation law.

Workers’ comp insurance is important not only for protecting employees, but also for minimizing financial risk for your business. If an employee suffers from a work-related injury or illness, this insurance can help cover the cost of:

• Medical expenses
• Emergency treatment
• Surgery and recovery
• Loss of income

Who is exempt from Workers’ Compensation insurance in Idaho?

According to state laws for workman’s comp, Idaho provides a number of exemptions from the requirement to carry insurance, including:

• Household domestic service
• Family members living in the employer’s household (for sole proprietors only)
• Volunteer ski patrollers
• Athletic officials for grades 7-12
• Real estate brokers and real estate salespersons paid solely by commission
• Casual work which occurs occasionally or at irregular times and which is not related to the type of business conducted by the employer
• Outworkers (a person to whom materials are provided at a location not under the control of the employer)

Workers’ Compensation owner’s coverage

Certain types of business owners and leaders may also be exempt from workers’ compensation coverage, such as:

• Sole proprietors
• Working members of a partnership or limited liability company
• Corporate officers who own at least 10% of the stock

Although the types of business owners listed above do not need workers’ comp for themselves, it’s important to note that they must still have coverage for any employees working for their business.

Don’t assume that just because you’re not required to have coverage as a business owner that it’s not worth getting workers’ comp insurance. This type of coverage can help protect your finances if you were to suffer an injury on the job.

For example, if you’re a personal trainer and you injure your back teaching a class, you might be unable to work with clients for several weeks. If you have workers’ comp coverage, you could get help paying for your medical expenses and be reimbursed for lost wages.

Self-insurance for Idaho Workers’ Compensation

Some large employers may be eligible to self-insure for workers’ compensation. Idaho’s application requirements for self-insurance include:²

• Annual payroll of at least $4 million over the last three years
• Approved documentation demonstrating sound financial condition of the employer
• A history of all workers’ compensation claims filed over the last five years
• A bond in the amount of $150,000 plus 5% of the first $10 million of the employer’s average annual payroll for the last three years

If written approval is obtained from the Industrial Commission, the business is permitted to self-insure, meaning that they assume all financial risk for workers’ comp claims directly rather than covering them through an insurance policy.

How does Workman’s Comp work in Idaho?

Workers’ compensation insurance provides benefits for employees who get injured or become ill at work. It’s required by law in Idaho to ensure basic financial protections for workers.

By having workers’ comp coverage, businesses can make sure their employees get the benefits they need without being directly liable financially.

Idaho workers’ comp helps pay for the costs of work-related injuries to employees and covered business owners, such as:

• Medical bills
• Lost wages
• Rehabilitation services
• Retraining services
• Permanent injury
• Survivor benefits

For example, imagine you own a civil engineering firm. One of your employees falls and breaks an ankle at a work site. Instead of being directly liable for their medical expenses and lost wages, your workers’ comp policy will pay out benefits directly to the employee.

Workers’ Comp income benefits in Idaho

Certain workers’ compensation income benefits may apply when an employee is seriously injured. Types of income benefits in Idaho include:

Temporary partial disability

The worker is able to return to part-time or modified work during recovery, but is receiving less than their typical earnings.

Temporary total disability

The worker is unable to return to work at all until they have recovered sufficiently.

Permanent partial impairment

The result of the worker’s injury is permanent, but they are able to return to the same or some other type of work.

Permanent total disability

The worker’s injury results in total and permanent disability which makes them unable to work.³

If an employee dies as the result of a work-related injury or disease, their surviving spouse may be eligible for benefits for 500 weeks. Children of the deceased typically receive benefits until age 18. Compensation for funeral expenses may be provided if the death occurs within four years of the work-related injury or disease.

Employer responsibilities for Workers’ Compensation insurance

If you’re an employer in Idaho, there are certain responsibilities related to workers’ comp coverage that you must take on. These responsibilities include:

• Post a notice of insurance coverage in a conspicuous place in all of your places of business
• Report any work-related injury or illness to the Idaho Industrial Commission
• Provide a copy of each report to your workers’ comp insurer⁴

Idaho Workers’ Compensation insurance reciprocity

Idaho permits employees to temporarily work from select surrounding states without the need for a separate workers’ compensation policy.⁵ These states include:

• Montana
• Nevada
• North Dakota
• Oregon
• Utah
• Washington
• Wyoming

To maintain coverage while an employee is working out of state, the employer must ask the Idaho Industrial Commission to request an extraterritorial certificate from the agency in that state responsible for administering their workers’ compensation law. These certificates are valid for a maximum of six months, but may be renewed with approval from the reciprocating state.⁶

Similarly, out-of-state employers may request permission for extraterritorial coverage if they wish to have their employees work in Idaho on a temporary or intermittent basis. Idaho’s extraterritorial certificates are initially issued for a six-month period. Some out-of-state employers may qualify for a six-month extension.⁷

Workers’ Compensation laws for telecommuters

In Idaho, workers’ comp is required for telecommuting employees. This includes employees who work for an out-of-state employer. The work-from-home employees in Idaho must be covered by a workers’ compensation insurance policy that is endorsed for Idaho.

Are there penalties for not having Workers’ Comp coverage?

Operating without the required workers’ compensation insurance is considered a misdemeanor, so employers who violate this law may be subject to criminal penalties.

Employers who are found to be operating without workers’ comp insurance may have to pay a penalty of $2 per day per employee or $25 per day, whichever is greater, for the time period in which they have failed to obtain coverage.

The Idaho Industrial Commission may also obtain an injunction to shut down operations while a business is in violation of the workers’ compensation law.

If you are an employer and you do not have workers’ compensation coverage when a worker is injured on the job, you will be personally liable for all benefits provided under Idaho workers’ compensation law, including medical expenses and lost wages.

In addition, you’ll be subject to an additional penalty of 10% of the total benefits as well as any attorney fees for the attorney representing the injured worker.

What are the rates for Workers’ Compensation in Idaho?

The rates for workers’ comp coverage are determined on a case-by-case basis. Your insurance carrier will consider a number of factors in determining the cost of your premiums, including:

• The risk of job-related injuries in your line of work
• The number of employees on your payroll
• Where your business operates
• Your insurance claims history

How NEXT Insurance helps Idaho businesses

At NEXT Insurance, we offer workers’ compensation insurance designed for small businesses and sole proprietors.

We make it easy to do everything online so you can get a quote, review your coverage options, purchase a policy and download your certificate of insurance in just 10 minutes. And if you need any help along the way, our team of licensed insurance advisors is standing by to answer your questions via phone or email.

Start an instant quote online today.

¹ Workers’ Compensation Employers FAQs

² IDAPA 17.01.01: Administrative Rules Under the Workers’ Compensation Law

³ Workers’ Compensation Injured Workers FAQs

⁴ Workers’ Compensation Employer Information

⁵ Extraterritorial Coverage and Reciprocity

⁶ Working Across State Lines: Idaho Reciprocity and Extraterritorial Coverage

⁷ Working Across State Lines: Idaho Reciprocity and Extraterritorial Coverage for Out-of-State Employers