In case you’re not aware, know Idaho law requires all business owners to have workers’ compensation insurance.
This program (workers’ comp) protects part-time and full-time employees injured at work or suffering from occupational diseases. It can also cover seasonal workers and independent contractors as well.
In this article, we’ll dive into everything an employer needs to know about workers comp insurance in Idaho.
What Workers’ Compensation Insurance in Idaho Covers
Typically, workers’ compensation insurance covers an employee’s immediate medical expenses after a workplace accident results in an injury. These could be ambulance rides, X-rays, and medication, too. If the injured worker suffers a permanent disability, the coverage might pay for their ongoing care, including physical therapy.
Often, workplace accidents can put employees out of work for weeks, months, or even years. Workers’ comp insurance may provide partial wage replacement during the recovery period.
Unfortunately, an employee may also pass away following a workplace incident. In that case, workers’ compensation can cover the funeral costs. Those financially dependent on the worker, such as their parents, siblings, children, or grandparents, may receive death benefits.
What’s the Cost of Workers Comp Insurance in Idaho?
Based on the National Academy of Social Insurance, the average cost of workers’ compensation in Idaho is roughly $1.69 for every $100 funneled into payroll. However, premiums can vary from one business to another.
Some factors affecting how a business’s workers’ compensation cost is calculated include:
- Business Location
- Number of workers or size of the business
- Annual payroll
- The industry in which the company operates
- Coverage limits
- Claims history
Even after considering these factors, workers’ comp insurance cost is not fixed. Business owners can still reduce the amount they pay in premiums. This can be done by maintaining a safe work environment, which reduces the risk of workplace accidents.
Are There Penalties For Not Having Workers’ Compensation Insurance?
Failure to comply with Idaho workers’ compensation laws may attract hefty fines and penalties. For example, you could be held liable when your worker is injured at the workplace. Therefore, you will be required to pay their medical expenses.
What’s more, for the noncompliance period, you might pay a fine of $2 for each worker every day or up to $25 per day. In addition, the Industrial Commission of Idaho can file an injunction to stop your business operations since you’ll have violated the workers’ comp law. Again, running a business without workers’ compensation insurance is a misdemeanor in Idaho. If caught, you could face criminal charges.
To avoid such unpleasant situations, get your policy from a private insurer, the Idaho State Insurance Fund, or apply for self-insurance.
In Closing
Without a doubt, workers comp insurance in Idaho is essential for operating a successful business. Obtaining it protects your employees, prompting them to perform their duties as expected. It also prevents you from getting into trouble with the law. But keep in mind that if there’s a workers’ comp settlement, it’s between you and your worker. Resolving the claim can take 12-18 months, depending on your unique case.
