Workers Comp Insurance in Idaho
Idaho requires almost every employer to carry workers compensation, starting with the first employee. The Idaho Industrial Commission says employers with one or more full-time, part-time, seasonal, or occasional employees must have a policy unless specifically exempt, and that it has to be in place before the first employee is hired.
Unlike Washington, Idaho lets you buy it in an open market: from private insurance companies, from the Idaho State Insurance Fund, or, for qualifying employers, through self-insurance. That means the price, the carrier, and the service are worth shopping.
What it covers
- Medical care for work-related injuries and occupational diseases
- Income benefits while an employee cannot work, generally 67% of their average weekly wage within state limits
- Permanent impairment and disability benefits
- Death benefits for dependents
- Employers liability: lawsuits connected to a workplace injury, under Part Two of the policy
What it does not cover
- Exempt workers who have not elected coverage, such as sole proprietors and LLC or partnership members
- True independent contractors (Idaho uses a right to control test)
- Work in another state without the right endorsement or reciprocity filing
- Employment discrimination and harassment claims (that is EPLI)
- Fines and penalties for failing to carry coverage
Who needs it
Every Idaho employer with at least one employee, including part-time, seasonal, and occasional workers, unless the employment is exempt under Idaho Code 72-212. Contractors also need it to protect themselves from uninsured subcontractors, and owners who are exempt can choose to cover themselves.
What drives the price
- Class codes for the work your employees actually do
- Payroll by class code, audited after the policy year
- Experience modification, once your premium is large enough to be rated
- Claims history
- Payments to subcontractors without their own coverage
- Whether owners elect to be covered
Where owners get caught: the uninsured subcontractor
Under Idaho Code 72-216, an employer is liable for compensation to the employee of a contractor or subcontractor working under it who has not secured coverage. The Industrial Commission's own guidance puts it plainly: an injured worker of an uninsured subcontractor may collect from the general contractor. Your carrier knows this too, so at audit, payments to subs without certificates are usually charged as your payroll. Collect a current certificate from every sub before they start, and keep it on file.
Workers Comp (Idaho): common questions
Do I need workers comp in Idaho if I only have one part-time employee?
Yes, in most cases. The Idaho Industrial Commission says employers with one or more full-time, part-time, seasonal, or occasional employees must carry a policy unless the employment is specifically exempt, and coverage must be in place before the first employee is hired.
Who is exempt from workers comp in Idaho?
Idaho Code 72-212 exempts, among others, household domestic service, casual employment, sole proprietors, working members of a partnership or LLC, and corporate officers who own at least 10% of the voting stock and, if the corporation has directors, also serve as a director. Associate real estate brokers and salespeople paid only by commission are also exempt. Exempt owners can elect coverage.
What happens if an Idaho employer does not carry workers comp?
It is a misdemeanor under Idaho Code 72-319, with a penalty of the greater of $2 per employee per day or $25 per day, plus larger penalties for repeat failures. The Commission warns that an uninsured employer can be personally liable for all benefits, including medical and wage loss, and Idaho Code 72-210 adds 10% plus attorney fees to an injured worker's award.
Is the Idaho State Insurance Fund the only option?
No. Idaho Code 72-301 allows coverage from any insurer authorized by the Idaho Department of Insurance, from the State Insurance Fund, or through approved self-insurance. Private employers can shop all of them; we compare carriers for your class codes.
My Idaho employees sometimes work in Washington. Are they covered?
Washington L&I lists Idaho as a reciprocal state: an Idaho employer can bring employees into Washington temporarily under its Idaho policy with an extraterritorial coverage certificate. Longer or regular Washington work usually needs a Washington L&I account. We map where your people work before you sign.
Sources
- Idaho Industrial Commission: employer FAQs
- Idaho Code 72-212: exemptions
- Idaho Code 72-216: contractor liability for subcontractors' employees
- Idaho Code 72-301: ways to secure coverage
- Idaho Code 72-319: penalties for failing to secure coverage
- Idaho Code 72-408: income benefits
- Idaho Industrial Commission: independent contractor or employee (PDF)
- Washington L&I: out-of-state employers and reciprocal states
Checked against these sources in October 2026. Rules change; we confirm the current requirements for your business before you buy.
Workers Comp (Idaho) in practice
Illustrative stories of businesses that needed it, and what else their review turned up.
Usually written alongside
Workers Comp & Stop-Gap (WA)
Washington workers comp runs through L&I. Stop-gap covers the lawsuits L&I does not.
Learn moreGeneral Liability
Injury and property damage claims from customers, clients, and the public. The policy most contracts require.
Learn moreCommercial Umbrella
Extra liability limits above your GL, auto, and employers liability, usually at a lower cost per dollar.
Learn morePart of the programs we build for contractors & trades, restaurants & food and health, wellness & personal care.
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