What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Idaho

When you hire employees in Idaho, you must secure specific insurance coverage to comply with state operational requirements and protect your business.

Workers' Compensation Insurance

Idaho requires most employers with one or more employees to carry workers' compensation insurance. This coverage provides benefits for employees who suffer work-related injuries or illnesses. It is critical for managing workplace risks and ensuring compliance with state regulations.

• Obtain workers' compensation insurance through a private insurer or the Idaho Industrial Commission.
• Keep accurate records of all employee injuries and report claims promptly.
• Review your policy annually to ensure coverage limits meet your business needs.

Unemployment Insurance

Employers in Idaho must also register for and pay unemployment insurance taxes through the Idaho Department of Labor.

• This insurance funds benefits for employees who lose their jobs through no fault of their own.
• Register your business with the Idaho Department of Labor within 30 days of hiring your first employee.
• Maintain timely payroll records and submit quarterly wage reports to calculate your tax liability.

Additional Operational Considerations

• General Liability Insurance: While not mandatory, it is advisable to carry general liability insurance to protect against third-party claims.
• Employee Classification: Properly classify workers as employees or independent contractors to ensure correct insurance coverage and tax treatment.
• Payroll Compliance: Integrate insurance premium payments with your payroll system to streamline compliance and recordkeeping.

As of 2026, verify insurance requirements periodically since regulations and thresholds may change. Staying current helps avoid penalties and supports smooth business operations in Idaho.