ID Small Business Solutions Insurance heading
  Idaho Small Business Solutions - Hot Topics Idaho Small Business Solutions - Frequently Asked Questions Idaho Small Business Solutions - Glossary Idaho Small Business Solutions - Links Idaho Small Business Solutions - Search Idaho Small Business Solutions - Site Map Idaho Small Business Solutions - Help Idaho Small Business Solutions - Feedback Idaho Small Business Solutions - Email Us
Idaho Small Business Solutions - Home Page
Idaho Small Business Solutions - Business Wizard
Idaho Small Business Solutions - Resource Wizard
Idaho Small Business Solutions - Business Assistance
Idaho Small Business Solutions - Legal Structure and DBAs
Idaho Small Business Solutions - Taxes
Idaho Small Business Solutions - Licenses
Idaho Small Business Solutions - Insurance
Idaho Small Business Solutions - Employer Issues
Idaho Small Business Solutions - Forms
Idaho Small Business Solutions - Agencies

State of Idaho Web Site

 


Insurance

All businesses need insurance, but how much and what type depends on your business activities. Many types of insurance are available; some are required by law and others are optional. Unless otherwise noted, most insurance can be obtained from an insurance company specializing in business insurance. For information about a specific type of insurance, choose from the following:

Required Insurance: Businesses with employees must have worker's comp and unemployment insurance.
Workers Compensation Insurance
Unemployment Insurance - State and Federal

Optional Insurance: Following are optional insurance products available to businesses. You may need one or more of them, depending on your particular business activity. Home-based businesses may have special needs in addition to those listed below. Your insurance agent or professional association can provide information on availability and cost.

Bonds
Surety Bond
Fidelity Bond

Health
Health Insurance
Disability Insurance
Liability
Automobile/Fleet
Business Liability
Business Interruption
Business Identity Theft Insurance
Business Theft Insurance
Completed Operations(Errors and Omissions)
Contents Insurance
Director's & Officer's Liability Insurance
Employment Practices Liability Insurance
General Liability
Home Office
Product Liability
Professional Liability
Property Insurance
Umbrella (Supplemental Liability)

Life Insurance
Life Insurance

Key Person Insurance

Insurance Fraud

Small Business Owners' Guide to Insurance

Worker's Compensation Insurance: Most businesses having employees must carry worker's compensation insurance, which is administered by the Idaho Industrial Commission.

Workers comp insurance can be obtained in four ways:    

  • Private Insurance Company – To find a company, contact an insurance agent.  

  • State Insurance Fund – Coverage is available through the State Insurance Fund, http://www.idahosif.org/

  • Assigned Risk Pool – Employers considered to be high risk and who are unable to obtain coverage from private insurance companies or the State Insurance Fund can apply for coverage through the assigned risk pool, administered by the National Council on Compensation Insurance (NCCI). For information, contact your insurance agent, call NCCI at 1-800-622-4123, or visit their website at http://www.ncci.com/.

  • Self-insurance – This option is available only to Idaho employers with large payrolls who are able to meet specific requirements. Approval for self-insurance must be obtained from the Idaho Industrial Commission.

link to a list of  Workers Compensation Exemptions Some types of employment are exempt from Worker's Compensation coverage. For information, click the box to the right.

Employers are required to display a poster provided by their insurance company indicating they provide worker's comp insurance. For information, visit http://www.iic.idaho.gov/posters/posters.html

Worker's Comp Fraud - Fraud is a huge issue with worker's comp claims. If you suspect an employee may be committing fraud, report the issue to your insurance company or the Idaho Industrial Commission. For information on workers comp fraud and how to minimize occurrences or detect it, see  http://sbinformation.about.com/cs/insurance/a/ucfraud.htm 

Idaho Industrial Commission offices are located throughout Idaho. To find the one nearest youlink to a list of  IIC regional offices, click on the box to the right.

 


Unemployment Insurance - State and Federal: Businesses with employees are required to carry unemployment insurance, which is actually a tax paid by the employer, not insurance. State unemployment taxes are administered by the Idaho Department of Labor. The Internal Revenue Service administers the federal unemployment tax. For information, visit the Taxes section of this website.

Top


Surety Bond - A form of insurance guaranteeing that a business has the financial capacity to perform the service for which it has been hired. This is common in the construction industry. Contact your insurance agent for information.

Contractors who are unable to obtain surety bond insurance through an insurance company may qualify for the Small Business Administration's (SBA) Surety Bond Guarantee Program. For information, see http://www.sba.gov/surety-bonds.

Fidelity Bond - A type of insurance that protects employers against employee dishonesty, theft, negligence, fraud and/or embezzlement. Employees who have direct access to a company's cash, securities, and/or accounting records, and those who handle investment funds or act as administrators or trustees, should be bonded.

Two types of fidelity bonds are available. A blanket fidelity bond automatically covers all employees of a business, such as a bank or investment company. Specialty fidelity bonds cover specific individuals who are named in the bond, such as janitors, office managers or trust or pension fund managers. Fidelity bonds are purchased from insurance companies.


Health Insurance - The requirement to provide health insurance for your employees is changing as provisions of the Affordable Healthcare Act are implemented. To find a list of companies currently approved to sell health insurance plans to Idaho businesses, visit the Idaho Department of Insurance website at http://www.doi.idaho.gov/Health/smempl_list.aspx.  

  • Maternity Coverage - If you provide health insurance and you have 15 or more employees, the federal Civil Rights Act requires you to provide maternity coverage for your employees and their dependent spouses (but not dependent children). The Idaho Human Rights commission requires Idaho employers with 5 or more employees and who offer health insurance to provide maternity coverage for employees and dependent spouses. For information, see http://www.doi.idaho.gov/consumer/HCReform/FedReform_benchmark.aspx. (The requirement to provide maternity coverage may change under the Affordable Healthcare Act.)
     
  • Dependent Children - If you have employees who pay court-ordered child support, you may be required to enroll their dependent children in your company's health insurance program. For information, visit the Employer Issues section of this website and look for "Child Support Payroll Deductions."

  • Chamber of Commerce Members - If you are a small or mid-sized business and you are a member of a Treasure Valley-area chamber of commerce, you can enroll in a group health plan, Chamber Blue, created in cooperation with Blue Cross of Idaho and Regence BlueShield. The plan offers savings of about 20% to qualified businesses. For information, visit http://www.bcidaho.com/plans/employer_sponsored/Chamber_Blue_Small.asp   Currently, the service is available only to members of chambers of commerce located in the Treasure Valley, though the program is being developed in other areas of the state. (Note: this insurance may no longer be available when the Affordable Healthcare Act is fully implemented. Information will be posted as it becomes available.)

National Standard Insurance Reporting Number - If your business offers health insurance to employees, you will need a National Standard Employer Identification number for electronic claims reporting. For information, see http://www.cms.gov/Regulations-and-Guidance/HIPAA-Administrative-Simplification/EmployerIdentifierStand/index.html.


Disability Insurance - Idaho, unlike some states, does not offer a state-mandated disability insurance program for employees other than the coverage offered by Worker's Compensation and your company's health insurance plan.

Both short term and long term disability insurance is available. Short term covers the early stages of a disability and is more appropriate for someone who is expected to make a full recovery. Long term disability insurance generally covers up to 5 years or until the person qualifies for either Medicare or Social Security disability payments. For information on Social Security disability insurance, visit http://www.socialsecurity.gov/dibplan/. Disability insurance can be obtained from most insurance companies offering health insurance.


Business Liability/Property Insurance  - This insurance protects buildings, property and inventory owned by a business against physical loss or damage by theft, fire, water, accident, or other occurrences. Coverage includes property not located at your business, such as equipment and/or supplies being used at a job site.

Contents Insurance - Similar to personal renter's insurance, contents insurance covers damage, loss, or theft of the contents of a building. If you rent or lease your building, the landlord should carry property insurance on the building (be sure to ask). Contents insurance covers property used or stored in the building and may also include leased equipment and items temporarily located at a job site.

Business Interruption - This liability insurance protects against loss if business activities are interrupted by a natural disaster, such as a fire or flood. It supplements Business Liability coverage and can be added to a business liability or property insurance policy.


General Liability - Protects the business if someone suffers a bodily injury while on the premises or employees damage the property of a customer while at a job location.

Employment Practices Liability Insurance (EPLI) - Protects against wrongful termination, discrimination, harassment and other employment-related lawsuits filed by employees, former employees and potential employees.

Product Liability - Protects against lawsuits for injury or property loss due to a defect, design flaw or malfunction of a product, food, medication or another item. Both manufacturers and retailers may need this insurance.

Professional Liability - Protects professionals who have greater than average knowledge in a particular area, such as doctors, lawyers, engineers, architects and counselors, against law suits related to their professional expertise. Medical malpractice insurance is a type of professional liability insurance.

Director's & Officers Liability Insurance - Officers and directors of a corporation or non-profit organization can be held personally liable for their actions on behalf of the business. This insurance protects them should law suits arise.

Umbrella (Supplemental Liability) - Provides additional liability coverage beyond that offered by a primary liability policy. This may be needed by businesses engaged in high-risk activities. 


Completed Operations (Errors and Omissions) - CPAs and other licensed professionals, such as contractors, real estate agents, architects, home appraisers and others, may need this insurance to protect against mistakes that could cause financial harm to a client or related party. 


Automobile/Fleet - Coverage is similar to individual automobile insurance and covers business owned or leased vehicles (car, truck, van, or trailer). If a personal vehicle is used for business, special insurance coverage called "non-owned automobile coverage" may be needed. Your insurance agent can provide details.


Life Insurance - Can be an individual policy on the business owner or a  group policy on the owner and employees.

Key Person - A type of life insurance that protects a business against financial loss caused by the death or disability of a key person (someone whose knowledge and/or skill materially contributes to the financial success of the business), including the owner, partners, and members of the management team. Also used to fund buy/sell agreements when a business is owned by more than one person. The business owns the policy, pays the premiums, and is the beneficiary.


Business Theft Insurance - Covers theft by employees, competitors, and others, including intellectual property theft. This may be needed in addition to liability insurance, which covers property theft.

Business Identity Theft Insurance - If your business collects, stores, or handles customers', patients' or employees' confidential, personal, or financial data, this insurance may be needed. It covers the costs of notifying customers or employees of theft, fees associated with recovery of the data, legal fees, and other issues. Banks and other financial institutions, medical offices and hospitals, insurance agencies, retail stores that accept credit cards, employment agencies and other businesses that collect and store personal data for any reason may need this insurance.


Home-Based Business - Home-based businesses may need additional coverage beyond that offered by a homeowner's policy. Check with your insurance agent to be certain you are fully covered. Not all home-based business activities are covered by homeowners' insurance, particularly if the actual activity, such as house painting, does not occur at your home.


Small Business Owners' Guide to Insurance: Published by the Insurance Information Institute, this booklet covers basic insurance needs for small businesses. Information is also available on insurance needs for specific types of businesses, such as internet businesses, artists, food service, and farms and ranches - http://www.iii.org/smallbusiness/


Insurance Fraud: If you suspect an insurance company or agent may have committed fraud by violating insurance laws or regulations, you can file an on-line report with the National Association of Insurance Commissioners (NAIC) at https://eapps.naic.org/ofrs/ and with the Idaho Department of Insurance at http://www.doi.idaho.gov/investigations/investigation.aspx.

If you suspect one of your employees or a business owner may have committed insurance fraud, contact your insurance company or the Idaho Department of Insurance to determine how to proceed. Also see "worker's comp fraud" under Worker's Compensation Insurance at the top of this page.

Top


Home / Business Wizard / Resource WizardBusiness AssistanceLegal Structure & DBAs / Taxes / Licenses / Insurance / Employer Issues / Forms / Agencies / Hot Topics / FAQs / Glossary / Links / Search / Site Map / Help  / Feedback / Email Us

If you didn't find the information you needed, please E-mail Us by using the tab at the top of the page.
If you have comments about the site, please send them to us by using the FeedBack tab at the top of the page.
 
 This site is maintained by
Idaho Small Business Development Center, 2360 W. University Drive, Boise, ID 83725-1655

This Web site is brought to you by the combined efforts of more than 20 local, state, and federal agencies. It was funded by a grant from the USDA Rural Development, Rural Business-Cooperative Service.

Privacy Statement

Copyright © 1999-2014 Idaho SBDC; All Rights Reserved.