Indiana Workers' Compensation Insurance

Indiana law requires most businesses to have workers’ compensation insurance.

Workers’ compensation insurance covers employees that are injured on the job, while protecting employers by limiting their liability. Most employers must carry it for their employees, whether they are full-time or part-time.

Get your small business covered today, or read on for more details on the Illinois workers’ compensation system.

Get a Quote Now!
Low Rates Available in Indiana

Workers’ Compensation Laws in Indiana

Indiana small businesses are required to carry workers' compensation insurance if they have any employees, with few exceptions:

  • Licensed real estate agents are not considered an employee and do not need to be covered by a policy.
  • Independent contractors in building or construction are required to become certified with the Indiana Worker’s Compensation Board every year before being granted a certificate of exemption.

Who needs to be covered by the policy, where you can buy it and how much it will cost are influenced by state legislation and the state's current legal and political climate. Your business must comply with the state where your employees perform work.

If a business operates in multiple states, or employees travel across state lines to work, a multi-state policy or all-states endorsement may be needed to ensure coverage.

How to Buy Small Business Workers’ Compensation Insurance

Indiana has a private market. Business owners can purchase a workers' compensation policy from any commercial insurance carrier or agency that is licensed to write in that state.

If you’re still having trouble finding coverage, you can contact Indiana’s assigned risk pool, which will place you with a carrier. The NCCI Assigned Risk Pool provides a safety net or last resort for employers and workers who otherwise cannot secure work comp coverage.

Indiana Workers’ Compensation Rates

Workers’ compensation rates in Indiana consistently rank as some of the lowest in the country. The Indiana Department of Insurance announced a decrease in workers' compensation rates, which will take effect January 1, 2019. Rates have been trending downward for several years because of fewer reported workplace injuries.

A small business workers’ comp premium can range from a few hundred dollars to a few thousand dollars, depending on four main factors:

  1. Class code: Industry and type of operations performed.
  2. Location: State where employees are performing work.
  3. Payroll: Rates are set per $100 in payroll.
  4. Experience: Years in business and past history of claims.

State rates are set by the Indiana Compensation Rating Bureau. The non-profit association of licensed insurance companies gathers data from members to set fair advisory rates. Insurers are required to use these rates, which can then be adjusted based on individual business factors like years in business, claims history or workplace safety programs.

Indiana passed reforms to the state work comp system in 2013, but the new legislation has had little effect on medical costs, according to a recent study by the Workers’ Compensation Research Institute.

Workers' compensation insurance covers wage replacement and medical bills for employees injured on the job. To protect against other injuries at your place of business, you may need general liability insurance.

Indiana Work Comp Resources

Editor’s note: Last updated November 19, 2018

Here's What You Need to Get Started

To buy workers compensation insurance, you need to request a quote from a licensed insurance agent and provide some details about your business.

Here’s what to have in front of you:

  • Number of employees in each class code.
  • Total payroll for all employees. You may be able to exclude yourself if you don't wish to be covered under the policy. 
  • Federal ID Number. If you are a sole proprietor, you can use your Social Security Number.
  • Copy of your workers comp insurance policy, if you've had coverage or claims in the past few years. If you know your company's experience mod, please have your experience mod rating sheet or policy in front of you. Otherwise, you will be assigned a default rating of 1.0.

The information on this page has been interpreted and summarized for your convenience. Please consult your state's governing authority for the most current and complete legislation.