Idaho contractor insurance quote: license requirements, liability and workers' comp

If you need contractor insurance in Idaho, start with what the state asks for at registration. The Idaho Contractors Board, part of the Division of Occupational and Professional Licenses (DOPL), wants a general liability certificate of at least $300,000 and either proof of workers' compensation or a statement explaining why you do not need it. General contractors and project owners usually ask for more. Burch Insurance Group can quote general liability, workers' compensation and the related coverage you need to register and to get on jobs.

Do I need a contractor license in Idaho?

Idaho uses registration, not licensing, for most building contractors. DOPL says the Idaho Contractor Registration Act requires anyone doing construction work with a total cost of more than $2,000, counting materials and labor, to register with the Idaho Contractors Board unless an exemption applies.

DOPL lists several exemptions, including:

• Trades licensed separately, such as electrical contractors, plumbers, HVAC installers, manufactured home installers, architects and engineers, when they stay within their license
• Employees paid wages by a contractor
• Suppliers who do not install or fabricate materials
• Owners working on their own property who do not plan to sell it within 12 months
• Commercial building owners maintaining their own buildings with their own crews

Idaho also has separate public works contractor licenses, and electrical, plumbing and HVAC work is licensed separately. If you are unsure which category applies, check with DOPL before you bid.

What insurance does Idaho require to register?

The registration application asks for two things on the insurance side:

1. A certificate of general liability insurance that includes products and completed operations coverage, with a limit of not less than $300,000 single limit. The application notes that the insured, not DOPL, is listed as the certificate holder.
2. Proof of workers' compensation insurance, or a statement of exemption explaining why coverage is not required, such as having no employees.

The application also asks for a $50 processing fee and your federal employer identification number. DOPL says registration is renewed every year, with a renewal notice sent about six weeks before it expires. Plan your general liability renewal so a lapse does not land in the middle of a registration renewal.

DOPL also requires you to display your registration number on advertising, contracts, permits, subcontracts and similar documents. For residential projects over $2,000, a general contractor must give the homeowner a disclosure statement before signing the contract and a final disclosure before final payment.

Do Idaho contractors have to carry workers' comp?

The Idaho Industrial Commission says employers with one or more employees, including part-time, seasonal and occasional workers, generally must carry workers' compensation, and coverage must be in place before the employee starts work.

The Commission lists several exemptions. Among them:

• The owner of a sole proprietorship
• Working members of a partnership or LLC
• Corporate officers who own at least 10 percent of the stock and serve as directors

Coverage can come from a private insurer, the Idaho State Insurance Fund, the assigned risk pool for employers that cannot find coverage elsewhere, or approved self-insurance for large employers. The Commission says going without required coverage is a misdemeanor and can leave the employer personally liable for an injured worker's benefits, plus penalties.

General contractors should also know Idaho Code section 72-216. An employer can be liable for workers' compensation owed to an employee of a contractor or subcontractor under it that has not secured coverage. That is why most Idaho general contractors collect a current workers' comp certificate, or proof of exemption, from every sub before work starts.

What general contractors and clients usually ask for

The state minimum gets you registered. It does not always get you on a job. Before you sign a subcontract or a commercial contract, expect requests like these:

• A certificate of insurance naming the general contractor or owner as certificate holder
• Additional insured status for the general contractor and owner, often for ongoing and completed operations
• General liability limits above the $300,000 state minimum, commonly stated per occurrence and aggregate
• Waiver of subrogation and primary and noncontributory wording
• Commercial auto, umbrella or builder's risk coverage on larger projects

Read the insurance section of a contract before you sign it and send it to us. Some requests need an endorsement added to your policy, and that takes time.

Questions Idaho contractors ask us

I am a one-person LLC with no employees. Do I need workers' comp? Working LLC members are among the Industrial Commission's listed exemptions. You would file a statement of exemption with your DOPL registration. A general contractor may still ask you to show proof of your status.

Is $300,000 enough general liability? It meets the registration minimum. Many general contractors and commercial owners in Boise, Meridian, Nampa, Idaho Falls and Coeur d'Alene ask subs for higher limits, so check your contracts.

Does the GL certificate need to list DOPL? No. The DOPL application says the insured, not DOPL, is the certificate holder.

Can you quote a contractor who also works in another state? Yes. Tell us every state where you work so the policy is set up correctly.

What BIG needs to quote

Send your business name and entity type, Idaho registration number or application status, trade and type of work, residential and commercial mix, estimated annual revenue and payroll, number of employees and subcontractor costs, prior insurance and five years of losses. If a contract requires specific wording, include that page.

Request a contractor insurance quote, or call 612-712-6407.