What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in Idaho

Before hiring employees in Idaho, businesses must secure specific insurance coverages to comply with state regulations and protect their operations.

Workers' Compensation Insurance

Idaho law requires most employers to carry workers' compensation insurance. This coverage provides benefits to employees who suffer work-related injuries or illnesses. It helps cover medical expenses and lost wages.

• Applies to employers with one or more employees.
• Must be obtained before employees begin work.
• Coverage can be purchased through private insurers or the Idaho Industrial Commission.

Unemployment Insurance

Employers in Idaho must register with the Idaho Department of Labor to pay unemployment insurance taxes. This insurance provides temporary benefits to workers who lose their jobs through no fault of their own.

• Registration is mandatory before hiring employees.
• Employers report wages and pay quarterly taxes based on payroll.

Additional Insurance Considerations

While not always legally required, the following insurance types support operational risk management:

• General Liability Insurance: Protects against third-party claims of bodily injury or property damage.
• Employment Practices Liability Insurance (EPLI): Covers claims related to workplace discrimination or wrongful termination.
• Commercial Auto Insurance: Required if employees will drive company vehicles.

Operational Tips

• Verify insurance coverage before onboarding employees to avoid compliance issues.
• Maintain accurate payroll and employee records for reporting and tax purposes.
• Consider consulting with an insurance broker experienced in Idaho business regulations to optimize coverage.
• Review insurance policies annually, especially when expanding or changing workforce size.

As of 2026, these insurance requirements are essential for Idaho businesses hiring employees and help ensure smooth operational compliance and risk management.