Idaho Workers' Compensation Insurance

Workers’ compensation insurance is required for Idaho businesses with employees, with few exceptions.

Employers with one or more full-time, part-time, seasonal or occasional employees are required to carry a workers’ comp policy. State law calls for steep penalties for non-compliance, which includes employers being personally liable for all benefits, including medical and wage loss as directed under workers' compensation laws.

Family

Family members in the employer’s household of business owners are automatically exempt from coverage, as long as the business is a sole proprietorship or a single member LLC taxed as a sole proprietorship.

Sole Proprietors, Partners and Corporate Officers

Sole proprietors, partners, corporate officers (that own at least 10%) and members of an LLC are all automatically excluded from coverage under Idaho law.

Sole proprietors, partners, members of a limited liability company, certain corporate officers and others may elect to cover themselves. If they’d like coverage, they must submit this in writing to the insurance carrier and their employer.

Unlike other states, waivers to opt-out of coverage are prohibited in Idaho.

Independent Contractors

Independent contractors are not employees, and therefore not required to be covered by the hiring company’s workers’ comp policy. However, worker status in Idaho is determined based on the four main criteria commonly referred to as “the right to control test.”

Employers may wish to speak with a representative from the Industrial Commission Employer Compliance to discuss the specific situation and ensure compliance.

Other Exceptions

Other exceptions to Idaho work comp law include:

• Household domestic service.
• Employees covered under Federal Workers’ Compensation Laws.
• Some agricultural workers.
• Real estate brokers and agents when paid solely by commission.

Additional Idaho Information

Telecommuting or remote work is becoming more common across the U.S. Out-of-state employers must still cover remote workers under their work comp policy, if the employee telecommutes from their home in Idaho. Also in the news is work comp coverage for first responders.

Currently, Idaho law doesn’t cover PTSD for first responders. Recent legislation to provide coverage for psychological injuries under Idaho’s workers’ compensation laws has received bipartisan support.

The Idaho Department of Insurance approved a 4.2 percent decrease in workers’ compensation rates in 2019. The drop was recommended by ratemaking agency NCCI (National Council on Compensation Insurance), and the result of lower claims costs. This will be the third rate reduction since 2017.

Idaho Work Comp Resources

• Workers’ compensation regulation: Idaho Industrial Commission
• Idaho rating bureau & assigned risk pool: NCCI (National Council on Compensation Insurance)
• Idaho state fund: Idaho State Insurance Fund