What size business needs workers’ comp?

Each state in the US passes its own workers’ compensation insurance laws. These laws detail which businesses must purchase the insurance and which, if any, industries the state exempts from purchase. Insure It All explains which Idaho Falls, ID businesses must buy workers’ comp insurance to comply with state law.

Businesses Who Must Purchase Insurance

In Idaho, any business with at least one employee must purchase workers’ comp insurance, according to the National Federation of Independent Business (NFIB). While some solopreneurs purchase this insurance to protect themselves, the state doesn’t require it. If a solopreneur hires an assistant or other employee, the business has to buy a policy.

Exemptions to Purchase

Exemptions to the requirement to purchase do exist. They include very specific situations, including:

  • a household hiring domestic workers, such as a housekeeper or butler
  • sole proprietors employing members of their own family who reside in the same home
  • agricultural plane pilots (crop-dusters)
  • realtors working on commission
  • businesses hire casual employees for occasional or irregular work unrelated to the employer’s type of business

The exemptions require some clarification. If your business is bed and breakfast, you can’t claim that the domestic workers qualify as home housekeepers. The exemptions for sole proprietors do include some family members living outside of the home, but not typically. You should first check with the Idaho Industrial Commission to ensure that you will not violate the law.

Example of Casual, Occasional Employees

Here’s an example of a business hiring a casual, occasional employee unrelated to its type of business. Suppose you hire a landscaping service or groundskeeper to upkeep your commercial building’s hedges and lawn, but your solopreneur business caters for events with fabulous cakes. In that case, you do not have to purchase workers’ comp insurance to cover the lawn crew who mows the grass every two weeks.

Let Insure It All help you properly insure your Idaho Falls, ID business. Contact us today about workers’ compensation insurance for your company.