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June 27, 2025
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Idaho workers' compensation insurance: Your guide to requirements and getting a policy
If you’re an Idaho employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
In Idaho, any business with one or more employees – whether full-time, part-time, seasonal, or occasional—is required by law to carry workers’ compensation insurance. Coverage must be in place before the first employee is hired.
Out-of-state businesses must also provide coverage if they have employees who live and work in Idaho for more than six months. If you regularly work with independent contractors, note that some may be classified as employees under Idaho law. To avoid issues, check Idaho’s “right to control” guidelines.
All employers must display a poster (provided by their insurance carrier) that confirms the business carries workers’ compensation coverage.
Exemptions under Idaho workers’ comp law include:
Household domestic workers
Casual employment
Family members working in a sole proprietor’s home
Sole proprietors
Members of partnerships or LLCs
Corporate officers
Real estate brokers and agents
Agricultural pilots
Volunteer ski patrol members
School sports officials
Employers may choose to cover exempt individuals voluntarily.
Coverage includes benefits for any work-related:
Injuries or accidents on the job
Repetitive stress injuries
Illnesses caused by toxic exposure
Physical and occupational therapy
Partial disability (based on state average wage)
Total disability (based on state average wage)
Funeral expenses
Survivor benefits for dependents and spouses
Medical benefits are available immediately, but there is a five-day waiting period before wage replacement benefits begin.
Businesses can purchase coverage through:
Private insurance carriers – Over 300 are authorized to sell policies in Idaho
State Insurance Fund – A public option administered by the state
Assigned risk pool – For businesses unable to secure private or public coverage
Self-insurance – Large companies may qualify by proving financial stability (approval required by the Idaho Industrial Commission)
Premium costs depend on payroll and the nature of the business.
Operating without required coverage can result in:
Personal liability for employee medical costs and lost wages
Fines of $2 per employee per day or $25 per day—whichever is higher
Legal action that could force your business to shut down until coverage is obtained
Employees must notify their supervisor or HR as soon as possible, regardless of how minor the injury may seem. Employers must complete and submit the following:
Supervisor Incident Report
First Report of Injury or Illness (FROI) – Required if medical treatment is needed; submitted to the State Insurance Fund
Witness Statement Form – Required only if the incident had witnesses
Idaho uses a designated provider list. Employees must receive care from one of the listed providers unless it’s an emergency. Any follow-up care must also be through the approved provider list. Otherwise, the employee may be responsible for those costs.
Having a policy in place before hiring your first employee is essential for legal compliance and peace of mind. Workers’ compensation not only protects your employees if something goes wrong – it also helps shield your business from costly lawsuits.
Have questions about getting covered? The team at Beyond is ready to help.
