An Idaho workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Idaho has no general “opt-out” filing for owners. Certain owners are simply outside the law’s coverage under Idaho Code § 72-212. Sole proprietors are not covered. Working members of a partnership or LLC are not covered.
A corporate officer is not covered if the officer owns at least 10% of the corporation’s voting stock at all times and, if the corporation has directors, is also a director. There is no cap on how many officers can qualify.
Any of these owners may choose to be covered by filing a written declaration with their insurer under § 72-213. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Idaho workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up.
Verified against Idaho sources as of October 2026.
Idaho at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Idaho has no general “opt-out” filing for owners. Certain owners are simply outside the law’s coverage under Idaho Code § 72-212. Sole proprietors are not covered. Working members of a partnership or LLC are not covered. A corporate officer is not covered if the officer owns at least 10% of the corporation’s voting stock at all times and, if the corporation has directors, is also a director. There is no cap on how many officers can qualify. Any of these owners may choose to be covered by filing a written declaration with their insurer under § 72-213. |
| Exemption form | Form IC53, “Declaration of Exemption” (title on the form: “Declaration under Idaho Code § 72-212(5)”; sometimes called the IC53 Election for Exemption). This form is only for family-member employees of a sole proprietor who do not live in the owner’s household. Owners and corporate officers file no exemption form, because their exclusion is automatic. |
| Filed with | The Idaho Industrial Commission. Mail the original and one copy, signed by both the employee and the employer. After approval, the Commission returns a copy. Instructions: https://iic.idaho.gov/wp-content/uploads/2018/01/ic_53_declaration_instructions.pdf. Online version: https://iicportal.idaho.gov/forms/IC53-Declaration-of-Exemption/ |
| Filing fee | Free |
| Renewal | No renewal is required. An IC53 exemption lasts until whichever comes first: a revocation form is filed with the Industrial Commission, employment with that employer ends, or the employee dies. A break in service of 365 days or less does not end the exemption. |
| Penalty for being uninsured | Idaho Code § 72-319: whichever is greater, 2 per employee per day or 25 per day, for each day the failure continues, recoverable for up to 3 consecutive years in an action by the Industrial Commission. If a corporation or LLC cannot pay, an officer, employee, member or manager who had authority to buy coverage may be held personally liable for similar penalties. |
In This Idaho Guide:
Who Qualifies for An Idaho Workers Comp Exemption
Idaho has no general “opt-out” filing for owners. Certain owners are simply outside the law’s coverage under Idaho Code § 72-212. Sole proprietors are not covered. Working members of a partnership or LLC are not covered. A corporate officer is not covered if the officer owns at least 10% of the corporation’s voting stock at all times and, if the corporation has directors, is also a director.
There is no cap on how many officers can qualify. Any of these owners may choose to be covered by filing a written declaration with their insurer under § 72-213.
Idaho Code § 72-212 excludes “an officer of a corporation who at all times during the period involved owns not less than ten percent (10%) of all of the issued and outstanding voting stock of the corporation and, if the corporation has directors, is also a director thereof.” The exclusion applies automatically, with no form, unless coverage is elected under § 72-213.
Idaho Code § 72-212 excludes a working member of a partnership or a limited liability company, with no form required. Family members who live in the household of the owner of a single-member LLC taxed as a sole proprietorship are also excluded (2013 amendment). Coverage may be elected under § 72-213.
How to File the Idaho Workers Comp Exemption
The form is Form IC53, “Declaration of Exemption” (title on the form: “Declaration under Idaho Code § 72-212(5)”; sometimes called the IC53 Election for Exemption). This form is only for family-member employees of a sole proprietor who do not live in the owner’s household. Owners and corporate officers file no exemption form, because their exclusion is automatic.. It is filed with The Idaho Industrial Commission.
Mail the original and one copy, signed by both the employee and the employer. After approval, the Commission returns a copy. Instructions: https://iic.idaho.gov/wp-content/uploads/2018/01/ic_53_declaration_instructions.pdf. Online version: https://iicportal.idaho.gov/forms/IC53-Declaration-of-Exemption/. Filing is free. Renewal: No renewal is required. An IC53 exemption lasts until whichever comes first: a revocation form is filed with the Industrial Commission, employment with that employer ends, or the employee dies.
A break in service of 365 days or less does not end the exemption.. Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
Idaho Workers Comp Exemption Rules at a Glance
The exact Idaho workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Idaho has no general “opt-out” filing for owners. Certain owners are simply outside the law’s coverage under Idaho Code § 72-212. Sole proprietors are not covered. Working members of a partnership or LLC are not covered. A corporate officer is not covered if the officer owns at least 10% of the corporation’s voting stock at all times and, if the corporation has directors, is also a director. There is no cap on how many officers can qualify. Any of these owners may choose to be covered by filing a written declaration with their insurer under § 72-213. |
| Corporate officers | Idaho Code § 72-212 excludes “an officer of a corporation who at all times during the period involved owns not less than ten percent (10%) of all of the issued and outstanding voting stock of the corporation and, if the corporation has directors, is also a director thereof.” The exclusion applies automatically, with no form, unless coverage is elected under § 72-213. |
| LLC members and partners | Idaho Code § 72-212 excludes a working member of a partnership or a limited liability company, with no form required. Family members who live in the household of the owner of a single-member LLC taxed as a sole proprietorship are also excluded (2013 amendment). Coverage may be elected under § 72-213. |
| Form | Form IC53, “Declaration of Exemption” (title on the form: “Declaration under Idaho Code § 72-212(5)”; sometimes called the IC53 Election for Exemption). This form is only for family-member employees of a sole proprietor who do not live in the owner’s household. Owners and corporate officers file no exemption form, because their exclusion is automatic. |
| Where to file | The Idaho Industrial Commission. Mail the original and one copy, signed by both the employee and the employer. After approval, the Commission returns a copy. Instructions: https://iic.idaho.gov/wp-content/uploads/2018/01/ic_53_declaration_instructions.pdf. Online version: https://iicportal.idaho.gov/forms/IC53-Declaration-of-Exemption/ |
| Fee | Free |
| Renewal | No renewal is required. An IC53 exemption lasts until whichever comes first: a revocation form is filed with the Industrial Commission, employment with that employer ends, or the employee dies. A break in service of 365 days or less does not end the exemption. |
| Proof of exemption or coverage | Insurers file proof of coverage through NCCI, which the Commission uses as its agent. Anyone can check an employer’s coverage for free with the Commission’s online Coverage Verification tool on iic.idaho.gov, searching by business name or FEIN. Compliance line: 208-334-6000 or 800-950-2110. An approved IC53 copy serves as proof of a family-member exemption. The state does not issue an exemption certificate for owners or officers. |
What An Idaho Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in Idaho has no workers’ comp claim: no medical coverage from the policy, no wage replacement and no disability award. Health insurance may exclude work injuries. Most owners who physically work the job keep themselves covered for that reason.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not an Idaho workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
Workers Exempt by Law in Idaho
Separate from the owner’s election, Idaho law exempts some classes of workers from coverage — commonly domestic workers below a threshold, casual labor, some farm labor and licensed real-estate agents paid by commission. A worker who does not fit a listed class counts toward the threshold, no matter what the 1099 says.
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Proving An Idaho Workers Comp Exemption or Coverage
Insurers file proof of coverage through NCCI, which the Commission uses as its agent. Anyone can check an employer’s coverage for free with the Commission’s online Coverage Verification tool on iic.idaho.gov, searching by business name or FEIN. Compliance line: 208-334-6000 or 800-950-2110. An approved IC53 copy serves as proof of a family-member exemption. The state does not issue an exemption certificate for owners or officers.
Why the Idaho Workers Comp Exemption Matters
The Idaho workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. Excluded owners and occupations can choose coverage by filing a written declaration from the employer and its insurer with the Commission under Idaho Code § 72-213.
Idaho also exempts family members of a sole proprietor who do not live in the household, but only when an IC53 is filed. This covers relatives within the first degree since 1997 and grandchildren since 1999, and the Commission publishes a chart of eligible relationships. Confirm with the Idaho Industrial Commission and a licensed attorney.
If the Idaho workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the Idaho requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in Idaho?
Idaho has no general “opt-out” filing for owners. Certain owners are simply outside the law’s coverage under Idaho Code § 72-212. Sole proprietors are not covered. Working members of a partnership or LLC are not covered. A corporate officer is not covered if the officer owns at least 10% of the corporation’s voting stock at all times and, if the corporation has directors, is also a director.
There is no cap on how many officers can qualify. Any of these owners may choose to be covered by filing a written declaration with their insurer under § 72-213.
What form is the Idaho workers comp exemption?
Form IC53, “Declaration of Exemption” (title on the form: “Declaration under Idaho Code § 72-212(5)”; sometimes called the IC53 Election for Exemption). This form is only for family-member employees of a sole proprietor who do not live in the owner’s household. Owners and corporate officers file no exemption form, because their exclusion is automatic.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Idaho still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official Idaho Sources & Resources
- Idaho Idaho Industrial Commission: https://iic.idaho.gov/
- Idaho Workers’ Comp Statute: https://legislature.idaho.gov/statutesrules/idstat/Title72/T72CH2/SECT72-212/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Idaho workers comp exemption guide was last verified against official Idaho sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.