Buying workers’ compensation for:


State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Indiana, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All Indiana public and private employer-employee relationships (with a few exceptions, listed below) are covered by the Worker’s Compensation and Occupational Diseases Acts. It does not matter how many workers are employed in a business; all employees must be covered.

Employers may purchase a Workers’ Compensation Insurance Policy or become self insured.

Volunteer Firefighters/Emergency Medical Technicians: Volunteer firefighters and EMT’s working in a voluntary capacity for a volunteer fire company or ambulance company must be covered by the medical treatment and death benefit portions of the Worker’s Compensation and Occupational Diseases Acts. Worker’s compensation for lost wages and impairment is not covered. 36-8-12-10

Minors. If a child under the age of 17 years is forced, required, or permitted to work in violation of 20-8.1-4-24 or 20-8.1-4-25, the Board is required to award the child employee double the compensation ordinarily payable under the Act. Half of an award of double compensation for child labor violations would be payable directly by the employer; the other half would be the responsibility of the employer’s insurance carrier.

Employment Relationships Not Covered
Railroad employees
Employees in federal commerce
Real estate professionals
Independent contractors
Independent contractors in the building and construction trades
Athletes on scholarship
Inmates of penal institutions

Employment Relationships that May Elect Optional Coverage
Local police and firefighters
Volunteers; emergency hazardous materials response team
Executive officers of public or nonprofit corporations
Sole proprietors
Partner in a partnership
Members of limited liability companies
Managers of limited liability companies
Rostered volunteers
Volunteers -- state-owned psychiatric institutions
Casual labor
Household Employees
Farm and agricultural employees

Factors that Impact Coverage

  • You are a licensed real estate agent: You are not considered an employee and do not need to be covered by a policy.
  • You are an independent contractor in building or construction: You are required to become certified with the Indiana Worker’s Compensation Board every year before being granted a certificate of exemption. A $15 fee is charged for a certificate of exemption. How to receive an independent contractor certificate of exemption >> Are you an employee or an independent contractor? 20 ways to tell >>
  • You are a sole proprietor or partner: In Indiana, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are included in coverage but may elect to be excluded.
  • You are a member of an LLC: As of January 1, 2012, Indiana excludes you from coverage, but you have the option to include yourself.

Failure to Secure Compensation

An employer who fails to carry insurance coverage sufficient to meets its obligations under the Worker’s Compensation Act may be ordered to pay reasonable medical expenses, double compensation, and reasonable attorney’s fees to an employee injured during the period in which the employer’s liability is uninsured.

The Worker’s Compensation Board may pursue court action against an employer who fails to carry insurance. The court will have the authority to order an employer to cease doing business in Indiana until the employer files proof of insurance coverage with the Board. The court may also order the employer to provide proof of financial ability to pay any claims and to deposit a security, indemnity, or bond with the Board to secure payment for any injuries occurring during the lapse of insurance coverage.

Finally, an employer who fails to carry insurance commits a Class A Infraction punishable by fines and imprisonment. Upon written referral from the Worker’s Compensation Board, employers failing to carry insurance can be prosecuted in the county in which an employee was injured.

Proof of Coverage is Required

Employers are required to post a Notice of Worker’s Compensation coverage in a conspicuous location in the workplace. The Notice must contain the name, address, and telephone number of the employer’s insurance carrier or the person responsible for administering worker’s compensation claims. Employers are obligated by law to provide employees with the name, address, and telephone number of the worker’s compensation insurance carrier upon request. If an employer fails to comply with these posting requirements, the Board may assess a civil penalty of $50.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.