If you skip required workers compensation in Idaho, you are committing a misdemeanor, and the costs stack up fast. Under Idaho Code 72-319, an employer that fails to secure coverage owes a civil penalty of the greater of 2 dollars per employee per day or 25 dollars per day for every day it went without coverage, the responsible owners and officers are personally liable for the compensation owed, and a court can order the business to stop operating until it gets covered.
Who this is for: Idaho owners weighing the risk of going without coverage, or trying to understand what they are exposed to after a lapse.
The short version
- Going without is a crime. Failing to secure required coverage is a misdemeanor under Idaho Code 72-319.
- Daily fines add up. The civil penalty is the greater of 2 dollars per employee per day or 25 dollars per day, for each uninsured day, and can be collected for up to three years back.
- Owners are personally on the hook. Responsible officers, managers, and members are personally liable for the compensation owed during the uninsured period, and any one of them can be made to pay the whole amount, not just a share.
- The worker gets extra. An injured worker is awarded an extra 10 percent of their total compensation, plus costs and attorney fees, when the employer was uninsured.
- A court can shut you down. A district court can order a defaulting employer to stop carrying on business until it secures coverage.
What an uninsured lapse actually costs
Idaho stacks several separate consequences, so the true cost is the sum, not any single line.
| Consequence | What it means | Source |
|---|---|---|
| Misdemeanor charge | Failing to secure coverage is a crime for the business and its responsible officers or members | Idaho Code 72-319 |
| Daily civil penalty | The greater of 2 dollars per employee per day or 25 dollars per day, for each uninsured day, collectible up to three years back | Idaho Code 72-319 |
| Repeat surcharges | An added 500 dollars for a second failure within three years, and 1,000 dollars for a third or later failure | Idaho Code 72-319 |
| Personal liability | Responsible owners and officers owe the compensation personally, and any one of them can be made to pay the whole amount | Idaho Code 72-319 |
| Extra award to the worker | The injured worker gets an extra 10 percent of total compensation, plus costs and attorney fees | Idaho Code 72-210 |
| Stop-work injunction | A court can order the business to stop operating until it is covered | Idaho Code 72-319 |
What going bare does not do in Idaho
One point is widely misunderstood. In some states, going uninsured strips an employer of its usual legal defenses and lets an injured worker sue in regular court. Idaho does not work that way. Workers comp remains the exclusive remedy even against an uninsured Idaho employer, so the worker's path is the comp claim plus the extra 10 percent award, not a negligence lawsuit with your defenses stripped away. The one narrow exception is an injury caused by the employer's willful or unprovoked physical aggression, and that applies whether or not you carry insurance. So the real exposure of going bare is the misdemeanor, the daily penalty, the personal liability, and the stop-work order, which is more than enough reason to stay covered.
Why the math never favors going bare
The daily penalty runs for every uninsured day and can be reached back three years, the personal liability means your own assets answer for a claim, and a single serious injury you have to pay yourself can dwarf years of premium. Set against a policy that often costs a few hundred to a few thousand dollars a year for a small employer, going without coverage is the expensive choice. If you have had a lapse, the fastest way to limit the damage is to get covered now and document when the gap started and ended.
A Nampa example
Illustrative, not a quote. A Nampa roofing company lets its policy lapse to save money and runs uninsured for two months with three crew members. A worker falls and is seriously hurt. The company faces a misdemeanor, a daily penalty for every uninsured day, and personal liability for the owner, and the injured worker is awarded an extra 10 percent on top of his benefits. The comp claim itself, which a policy would have paid, now comes out of the owner's pocket. See our workers comp for roofers page.
Real questions Idaho owners ask
What is the penalty for not having workers comp in Idaho?
Going without required coverage is a misdemeanor under Idaho Code 72-319. You owe a civil penalty of the greater of 2 dollars per employee per day or 25 dollars per day for each uninsured day, and the owners can be personally liable for the compensation owed.
Can I be held personally liable if my business goes uninsured?
Yes. Idaho Code 72-319 makes the responsible officers, managers, and members personally liable for the compensation owed during the period the business had no coverage, and any one of them can be made to pay the whole amount, not just a share.
How far back can Idaho collect the penalty?
The daily civil penalty can be collected for up to three years of uninsured days. Repeat failures add surcharges of 500 dollars for a second within three years and 1,000 dollars for a third or later.
Does an injured worker get more if I was uninsured?
Yes. Under Idaho Code 72-210, an injured worker whose employer failed to secure coverage is awarded an extra 10 percent of their total compensation, plus costs and reasonable attorney fees.
Can the state shut down my business for not carrying coverage?
A district court can order a defaulting employer to stop carrying on its business until it secures the required coverage. Idaho's stop-work power runs through a court injunction rather than an on-the-spot order.
If I go uninsured, can my worker sue me in regular court?
Generally no. Workers comp stays the exclusive remedy even against an uninsured Idaho employer, so the worker's path is the comp claim plus the 10 percent add-on. The narrow exception is willful physical aggression by the employer.
I had a lapse in coverage. What should I do now?
Get covered right away and document exactly when the gap started and ended. Because the penalty runs per uninsured day, closing the gap quickly and being able to show the dates limits the exposure.
Why Idaho owners choose Morrow
- We shop the right market for you. In Idaho you can buy workers' comp from any of the hundreds of private insurers licensed here, or from the state-chartered Idaho State Insurance Fund, which competes right alongside them. That lets us shop your rate widely, and if your work is too risky for any of them, there's a state-backed fallback plan that still has to cover you.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Idaho guides
Every Idaho business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Idaho (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- Idaho roofer workers comp
This guide is general information, not legal advice. Idaho rules and penalty amounts can change, so verify current requirements with the Idaho Industrial Commission or a licensed advisor before you rely on them. Last updated: July 2026.