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Required Insurance

Worker’s Compensation Insurance

All businesses having employees must carry worker’s compensation insurance, administered by the Idaho Industrial Commission unless specifically exempt. Workers comp insurance can be obtained in four ways:

  • Private Insurance Company – contact an insurance agent.
  • State Insurance Fund
  • Assigned Risk Pool – Employers considered to be high risk and unable to secure coverage from private insurance companies or the State Insurance Fund can apply for coverage through the assigned risk pool, administered by the National Council on Compensation Insurance (NCCI). For information, contact your insurance agent, call NCCI at 1-800-622-4123, or click the link above.
  • Self-insurance – Available only to Idaho employers with large payrolls who are able to meet specific requirements. Approval to self-insure must be obtained from the Idaho Industrial Commission. For a list of Industrial Commission offices, click here.

Exemptions: A few types of employment are exempt from Worker’s Compensation coverage. See Workers Compensation Exemptions. Employers must display a poster provided by their insurance company indicating the business has worker’s comp insurance.

Out-of-state employers: Out-of-state employers having employees working in Idaho for up to 6 months can secure an “extraterritorial certificate” of coverage from their home state. Out-of-state employers having an employee who lives and works in Idaho more than 6 months must carry workers comp insurance issued by an approved company. This includes employees who telecommute from their homes full time, part time, seasonally and occasionally. Contact your nearest Industrial Commission office for details.

Worker’s Comp Fraud: If you suspect an employee may be committing fraud, report the issue to your insurance company or the Idaho Industrial Commission. For information on workers comp fraud and how to minimize occurrences or detect it, click here

Unemployment Insurance – State and Federal

Businesses having employees working in Idaho (including out of state businesses) are required to pay unemployment insurance tax, a tax (not insurance) paid only by the employer. State unemployment taxes are administered by the Idaho Department of Labor. The Internal Revenue Service administers the federal unemployment tax. For information, visit the Taxes section of this website.

Unemployment Fraud: If you suspect someone is fraudulently obtaining unemployment benefits, contact the Idaho Department of Labor.

Note: Corporation owners and officers who are also shareholders and who engage in the routine operations of the business must establish an unemployment Insurance tax account. They need to report a fair market wage before taking distributions or dividends that are not taxable as wages. Many new corporation owners do not realize that they, themselves, are considered employees even if they are the only person working in the business. All corporations whose owners/officers provide services must open an unemployment insurance tax account with Idaho Department of Labor and either report wages or opt out as a corporate officer. For details, contact your nearest Department of Labor office.


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