Idaho Code
Idaho Code § 72-301 (2026)
Security for payment of compensation.
✓ current as of May 2026
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Security for payment of compensation.
(1) Every employer shall secure the payment of compensation under this law in one (1) of the following ways:
(a) By insuring and keeping insured with a policy of worker’s compensation insurance as defined in section 41-506(d), Idaho Code, the payment of compensation with any insurer, as defined in section 41-103, Idaho Code, authorized by the director of the department of insurance to transact such insurance, provided, that every public employer shall insure its liability for payment of compensation with the state insurance fund unless such fund shall refuse to accept the risk when the application for insurance is made; or
(b) An employer may become self-insured by obtaining the approval of the industrial commission and by depositing and maintaining in a custodial account with the state treasurer money or acceptable security instruments satisfactory to the commission securing the payment by said employer of compensation according to the terms of this law. Such acceptable security instruments are bonds, treasury bills, interest-bearing notes or other obligations of the United States for which the full faith and credit of the United States is pledged for the payment of principal and interest. In lieu of such money or security instruments, the commission may allow or require such employer to file or maintain with the state treasurer a surety bond with any company authorized to transact surety insurance in Idaho. The commission shall adopt rules governing the qualifications of self-insured employers, the nature and amount of security to be deposited and maintained with the state treasurer, and the conditions under which an employer may continue to be self-insured.
(2) No insurer shall be permitted to transact worker’s compensation insurance covering the liability of employers under this law unless it shall have been authorized to do business under the laws of this state and until it shall have received the approval of the commission. To the end that the workers secured under this law shall be adequately protected, the commission shall require such insurer to deposit and maintain in a custodial account with the state treasurer money or acceptable security instruments in an amount equal to the total amounts of all outstanding and unpaid compensation awards against such insurer. Acceptable security instruments are bonds, treasury bills, interest-bearing notes or other obligations of the United States for which the full faith and credit of the United States is pledged for the payment of principal and interest. Acceptable security instruments also include municipal bonds issued by the state of Idaho and its subdivisions, counties, cities, towns, villages and school districts. The insurer shall have the responsibility to monitor the ratings for its bonds. Bonds held by worker’s compensation insurers in support of insurance obligations must have been assigned a credit rating grade not less than "single A minus" by one (1) or more credit rating providers registered with the United States securities and exchange commission as a nationally recognized statistical rating organization (NRSRO). If the credit rating assigned to the bond by the NRSRO is downgraded below "single A minus," the worker’s compensation insurer shall within thirty (30) days of the downgrade replace the bond with one that meets the credit quality requirement specified in this section. In lieu of such money or security instruments, the commission may allow or require such insurer to file or maintain with the state treasurer a surety bond of some company or companies authorized to do business in this state for and in the amounts equaling the total unpaid compensation awards against such insurer.
(3) When an insurer has been placed in liquidation, any security being held in a custodial account with the state treasurer under this section shall be converted into cash and transferred into the insolvent insurer fund created in subsection (4) of this section. Such funds shall continue to be held for the purpose of securing any future claims made against the insolvent insurer under this law or until released by the commission to the liquidator, if one exists, or to the insurer’s state of domicile, as provided herein. Interest earned on moneys deposited in the insolvent insurer fund shall be credited, pro rata, to the account balance of security being held to answer claims made under this law against an insolvent insurer. Moneys deposited in the insolvent insurer fund may be used to pay the reasonable costs or expenses charged by any financial institution holding such funds on deposit for the state treasurer. Any balance in funds remaining on deposit in the insolvent insurer fund to answer the claims of an insolvent insurer after discharge of that insurer’s liquidator may be transferred to the liquidator, if one still exists, or to the liquidated insurer’s state of domicile, at such time as the commission determines that said security is no longer required to be held by the state treasurer for the purposes of this law.
(4) There is hereby created in the state treasury the insolvent insurer fund. Moneys in the fund are hereby continuously appropriated for the purposes set forth in the provisions of this section. Interest earned on moneys in the fund shall be returned to the fund.
(5) The approval by the commission of any insurer or self-insured employer may be withdrawn if it appears to the commission that workers secured thereby under this law are not fully protected.
(6) For the purposes of this section, the term "public employer" shall not include any single-purpose district organized or that may be organized as a local public body in accordance with the laws of the state of Idaho for the purpose of constructing or furnishing any municipal service. For the purposes of this section, a "public employer" includes a city, county, and school district. The provisions of this subsection shall be null, void, and of no force and effect on and after July 1, 2030. Prior to July 1, 2030, the legislature may evaluate the effectiveness of the provisions of this subsection, including whether to remove this subsection or revise the definition of "public employer" provided in this subsection to include cities, counties, and school districts.
Notes of Decisions
Cited in 43
cases (5 in the last 5 years), 1954–2023 · leading case: Robison v. Bateman-Hall, Inc., 76 P.3d 951 (Idaho 2003).
Robison v. Bateman-Hall, Inc., 76 P.3d 951 (Idaho 2003). “Such third party liability shall not include [1] those employers described in section 72-216, Idaho Code, having under them contractors or subcontractors who have in fact complied with the provisions of section 72-301, Idaho Code; nor include [2] the owner or lessee of premises,…”
Edwards v. Indus. Comm'n of the State, 943 P.2d 47 (Idaho 1997). “A, filed a petition for declaratory ruling with the Industrial Commission (Commission) seeking a determination that I.C. § 72-301 applies to the State Insurance Fund (SIF).”
City of Boise v. Indus. Comm'n, 935 P.2d 169 (Idaho 1997). “The parties do not dispute that at least one of the purposes of the hearing was to determine whether, under I.C. § 72-301, public employers may self-insure (the legal issue).”
Kolar v. Cassia Cnty. Idaho, 127 P.3d 962 (Idaho 2005). “” Idaho Code § 72-301 provides: “Every employer shall secure the payment of compensation under this law.”
Peone v. Regulus Stud Mills, Inc., 744 P.2d 102 (Idaho 1987). “I.C. § 72-301 (Supp. 1986) and I.C. §§ 72-209, -211 (1973).”
Fuhriman v. State, 153 P.3d 480 (Idaho 2007). “§ 72-223 provision requiring that a category one employer has under him a contractor that complied with I.C. § 72-301. See I.C. § 72-223(1).”
State Ex Rel. Indus. Comm'n v. Quick Transp., Inc., 999 P.2d 895 (Idaho 2000). “§§ 72-319(4) and (5) seeking penalties and an injunction against Indian Country Enterprises for employing workers without carrying worker’s compensation insurance as required by I.C. § 72-301. The district judge dismissed the case for lack of jurisdiction.”
Venters v. Sorrento Delaware, Inc., 108 P.3d 392 (Idaho 2005). “However, the Act also clearly excludes certain parties, known as statutory employers, from third-party liability- Such third party liability shall not include [1] those employers described in section 72-216, Idaho Code, having under them contractors or subcontractors who have in…”
Blake v. Starr, 203 P.3d 1246 (Idaho 2009). “” If, as Blake argues, TPS did in fact comply with the provisions of I.C § 72-301, then ISG is immune from liability for Blake’s injuries.”
Thom v. Callahan, 540 P.2d 1330 (Idaho 1975). “Because of its finding that appellant had not “secured” payment of compensation as required by I.C. § 72-301, 1 the Commission also awarded claimant $753.”
Smith v. Excel Fabrication, LLC, 535 P.3d 1098 (Idaho 2023). “Such third party shall not include [1] those employers described in section 72-216, Idaho Code, having under them contractors or subcontractors who have in fact complied with the provisions of section 72-301, Idaho Code; nor include [2] the owner or lessee of premises, or other…”
Krinitt v. Idaho Dep't of Fish & Game, 398 P.3d 158 (Idaho 2017). “Statutory employers under the first category are employers “described in section 72-216, Idaho Code, having under them contractors or subcontractors who have in fact complied with the provisions of section 72-301, Idaho Code.” I.C. § 72-223(1).”
— Idaho Code § 72-301(1) — 3 cases
City of Boise v. Indus. Comm'n, 935 P.2d 169 (Idaho 1997). “The parties do not dispute that at least one of the purposes of the hearing was to determine whether, under I.C. § 72-301, public employers may self-insure (the legal issue).”
Smith v. O/P Transp., Inc., 814 P.2d 23 (Idaho 1991).
Thom v. Callahan, 540 P.2d 1330 (Idaho 1975). “Because of its finding that appellant had not “secured” payment of compensation as required by I.C. § 72-301, 1 the Commission also awarded claimant $753.”
— Idaho Code § 72-301(2) — 3 cases
Edwards v. Indus. Comm'n of the State, 943 P.2d 47 (Idaho 1997). “A, filed a petition for declaratory ruling with the Industrial Commission (Commission) seeking a determination that I.C. § 72-301 applies to the State Insurance Fund (SIF).”
Thom v. Callahan, 540 P.2d 1330 (Idaho 1975). “Because of its finding that appellant had not “secured” payment of compensation as required by I.C. § 72-301, 1 the Commission also awarded claimant $753.”
City of Boise v. Indus. Comm'n, 935 P.2d 169 (Idaho 1997). “The parties do not dispute that at least one of the purposes of the hearing was to determine whether, under I.C. § 72-301, public employers may self-insure (the legal issue).”
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