What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Idaho

When hiring employees in Idaho, businesses must secure specific types of insurance to comply with state operational requirements and protect both the company and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most Idaho employers with one or more employees. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Employers must obtain coverage through a private insurance carrier or the Idaho State Insurance Fund.
• Ensure timely reporting and recordkeeping of workplace injuries to maintain compliance.

Unemployment Insurance

Idaho employers are required to pay into the unemployment insurance program, which provides temporary benefits to employees who lose their jobs through no fault of their own.

• Register with the Idaho Department of Labor to set up unemployment tax accounts.
• Maintain accurate payroll records to calculate and report unemployment taxes correctly.

Additional Insurance Considerations

While not legally required, businesses often consider other insurance types to manage risk effectively:

• General liability insurance to protect against third-party claims.
• Employment Practices Liability Insurance (EPLI) to cover claims related to workplace discrimination or wrongful termination.

Operational Tips

• Verify insurance coverage before onboarding employees to avoid penalties.
• Use payroll and compliance automation tools to track insurance premiums and reporting deadlines.
• Keep detailed records of insurance policies and employee classifications for audits.

As of 2026, staying updated with Idaho's Department of Labor and Idaho Industrial Commission guidelines ensures your business remains compliant with insurance requirements when hiring workers.