If you run a business and have employees, you’ll need to purchase Idaho workers’ compensation insurance. In fact, this type of insurance, is a requirement in most states, including Idaho, with some exceptions. It helps pay your employees’ medical bills if they sustain and injury on the job. And limits your liability for workplace accidents.
Idaho business owners pay around $1.69 per $100 of payroll for workers’ compensation insurance. For a better idea of pricing, a company with a total annual payroll of $100,000, for example. Will pay around $1,690 per year, or $140 a month, for workers’ compensation insurance. These can rates vary greatly, though, depending on a variety of factors.
In general, the probability of a work injury determines workers’ compensation rates. For insurance providers to accurately determine the risk of insuring their employees, most businesses will utilize a variety of workers’ compensation class codes. These codes are given to each type of employee to indicate what level of risk their jobs pose. Workers’ compensation costs may be higher for employees who perform more labor-intensive duties. Because they are more likely to be injured.
Workers’ compensation in Idaho helps with medical bills or lost wages if one of your employees sustains an injury at work or becomes ill because of workplace conditions. The employee’s weekly average wage determines the workers’ compensation benefits. The amount workers’ compensation pays out depends on the type of benefit.
In general, workers’ compensation insurance in Idaho covers:
- Accidents and injuries – If an employee gets hurt while working, workers’ compensation will cover any medical expenses they have as a result of their injury, such as hospital or doctor bills.
- Illness – If an employee becomes ill as a result of being exposed to allergens or other hazardous materials, their medical bills will also be covered.
- Repetitive injury – It’s not just accidents that are covered: treatment for repetitive injuries, like carpal tunnel syndrome, are also covered by workers’ compensation.
- Ongoing care – Your employee may require ongoing medical care for their injury or illness, even after they return to work. This will be covered, including any additional doctor’s appointments or surgeries.
In addition, if the accident or illness causes a permanent or temporary disability. The employee will get payments through either weekly or lump sum payments. These payments will vary depending on whether your employee has a temporary or permanent disability.
If their condition stops them from performing their job while they recover. But they can return to work as normal once they do recover, they have a temporary disability. If a doctor finds they will never fully recover from their injury or illness, they have a permanent disability. These types of disability payments are further classified into two groups:
- Temporary total disability (TTD) – If your employee is temporarily disabled and cannot work at all during recovery, they will receive TTD payments.
- Temporary partial disability (TPD) – If your employee is temporarily disabled, but they are able to return to work with some restrictions, such as needing to work shorter hours or do lighter duties, they will receive TPD to make up for the loss of hours and possible pay cut. If your business, for whatever reason, can’t work within these restrictions, the employee may still be eligible for these payments.
- Permanent total disability (PTD) – Employees who are still unable to work at all after recovering to their full medical potential will be eligible for PTD payments.
- Permanent partial disability (PPD) – Employees who have permanent disabilities, but can work with them will be eligible for PPD.
Idaho’s Workers’ Compensation Death Benefits
If an employee dies as a result of a work-related injury or illness, their surviving spouse, children, and other dependents may qualify for death benefits.
Your employee’s surviving spouse can receive workers’ compensation death benefits for 500 weeks, unless they remarry within that time period. Up to three dependent children can also receive benefits until they reach the age of 18. Other family members, such as parents, siblings, grandparents, or grandchildren, who were financially dependent on the worker, may also be eligible for benefits.
If your employee passes away within four years of their injury or illness, workers’ comp may cover some funeral expenses as well.
Idaho’s Workers’ Compensation Laws
Every employer in Idaho with one or more employees has to carry workers’ compensation insurance. That includes full-time and part-time employees, as well as seasonal and occasional workers.
According to Idaho workers’ compensation laws, you must have a policy in place before hiring your first employee. This includes contract workers, since they are also employees under Idaho law. If you hire contract workers, you should consult with an Industrial Commission Employer Compliance representative to determine whether they require coverage.
Some Idaho businesses or types of employees may be exempt from workers’ compensation requirements. This includes:
- Domestic workers
- Workers covered by the federal workers’ compensation law
- Pilots for dusting or agricultural spraying (these are only exempt under certain conditions)
- Real estate brokers and salespeople who work on commission
- Volunteer ski patrollers
- Secondary school athletic officials (grades 7-12)
- Casual employees who work irregular hours and are unrelated to your business
You may also be exempt if you are the owner of your business and:
- You have no employees
- Your employees are your family and live in your home
Even if your business is exempt, it is still a good idea to purchase workers’ compensation insurance. If you don’t, your employees can sue you if they are injured or become ill on the job.
How to Buy Workers’ Compensation Insurance
When it comes to purchasing a workers’ compensation policy in Idaho, business owners have four options:
- Private insurance companies – You can apply for private insurance through a private carrier. To compare quotes from top-rated insurers, work with EZ’s highly trained agents.
- Idaho State Insurance Fund (ISIF) – If you’re having trouble getting insurance through a private company, you can buy insurance through the state fund, which insures employers who are not accepted by private insurers.
- Self-insurance – If you have a large business that meets certain criteria, you may be able to self-insure for workers’ compensation, meaning you would pay workers’ comp claims out-of-pocket as they arise, instead of paying a monthly premium to an insurance company. But, as noted, you will have to apply to be able to do this.
- The risk pool – Employers who are ineligible for the aforementioned programs can obtain insurance through their assigned risk pool. Individual states usually have an assigned risk pool to ensure that employers can obtain workers’ compensation insurance even if standard-market insurance companies are unwilling to provide coverage for their business.
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How to Get the Most Savings
Even though factors beyond your control determine the majority of workers’ compensation costs. There are still ways to save. A safety program is an excellent way to avoid workplace injuries and claims. It’s important to have safety and proper working procedures in place. No matter what your industry. Injuries are less likely in employees who have safety training, resulting in lower workers’ compensation costs for your company.
It is also a good idea to regularly review your claims history. Analyzing your claims history can help you spot and correct patterns. Certain elements of your business practices or operations may be a common source of claims. By keeping a close eye on potentially hazardous operations, you can save money.
One of the most efficient ways to save is to properly classify your employees. When you apply for workers’ comp insurance, you will classify each employee based on their function, such as desk worker or laborer. These risk classifications impact the cost of workers’ compensation. So, make sure you classify employees correctly. Not only that, but if you fail to properly classify your employees, you could face fines.
In some cases, small business owners can purchase pay-as-you-go workers’ compensation. This type of policy has a low initial premium and allows you to pay based on actual payroll rather than estimated payroll. This type of policy can be beneficial to businesses that hire seasonal employees or have a fluctuating workforce.
Last but not least, working with a licensed EZ agent can help you save hundreds of dollars per year. We specialize in insurance for small businesses of all sizes and can find the right policy for your business and your budget. Begin a free online application today to start comparing workers’ compensation insurance quotes for your small business from leading U.S. carriers.
Idaho Workers’ Compensation FAQs
Does Idaho require you to have workers’ compensation insurance?
Yes, if you have employees, you have to have workers’ compensation insurance in your state. If an employee gets an injury at work and you do not have the mandatory workers’ compensation coverage, you may be personally liable for all benefits that workers’ compensation insurance would have provided. In addition, you may face a 10% penalty on top of the amount for medical bills and wage loss benefits, as well as attorney fees.
Not only that, but there is a penalty of $2 per employee per day, or $25 per day, whichever is greater, for the period of noncompliance. You may even have to stop operating your business while in violation of the law. You could also face criminal misdemeanor charges.
How do workers’ compensation settlements work in Idaho?
Most workers’ comp settlements in Idaho provide benefits as a lump sum payment and are permanent. Which means once there is a settlement an employee cannot reopen the case. Before a lump-sum settlement can be legally binding, the Idaho Industrial Commission must approve it. They must deem it to be in the best interests of all parties.
Some settlements permit the continuation of medical benefits, which is sometimes the case if the employee is likely to require additional or ongoing treatment.
A lump-sum settlement typically includes the following:
- Future medical expenses
- Balance of unpaid disability benefits
- Costs associated with reduced wage-earning capacity due to disability
- Costs of retraining
What is the statute of limitations in Idaho?
Unless the claim closes with a lump-sum settlement, the state of Idaho does not have a statute of limitations on medical benefits if the employee has met the filing and notice requirements.
With that being said, any job-related injury or illness must be reported to you within 60 days of the date of the injury or discovery of the illness.
If income benefits were paid and then discontinued more than four years after the date of the injury. The employee has one year from the date of the last payment to apply for additional income benefits.
Why Use EZ
We do everything in our power to make shopping for workers’ compensation insurance as easy and stress-free as possible, and we give each of our customers our undivided attention. As soon as you fill out our form, you will receive instant, free quotes from your dedicated agent, who will give you personalized service and will word to understand your needs. We want to ensure that you make the best decision possible, and that you get the best coverage at the best price. Our services are completely free so check out your quotes today!
If you still have questions, feel free to give us a call at 877-670-3538. You will connect to a local insurance agent who can answer all of your questions, and help you find the workers’ compensation policy that works best for your business.