IN · Workers' compensation
Indiana Workers' Compensation Insurance
Who must carry coverage in Indiana, how owners and officers are treated, what happens if you go without it, and how to compare carriers.
Indiana requires all employers to provide workers' compensation coverage for their employees under Indiana Code 22-3-2-2, with no minimum headcount exemption for most businesses. Specific statutory exemptions apply to categories like railroad workers, farm laborers, municipal fire and police personnel covered by a pension fund, and genuine independent contractors.
Who must carry coverage in Indiana
Indiana requires all employers to provide workers' compensation coverage for their employees under Indiana Code 22-3-2-2, with no minimum headcount exemption for most businesses. Specific statutory exemptions apply to categories like railroad workers, farm laborers, municipal fire and police personnel covered by a pension fund, and genuine independent contractors. See the Indiana Compensation Rating Bureau's requirements and penalties summary.
Owners, officers, LLC members
Corporate and executive officers are included in coverage as employees by default; an officer can opt out only by filing State Form 36097 (Notice of Election) with both the insurance carrier and the Worker's Compensation Board, and the exclusion takes effect only once both have received it. Sole proprietors, partners, and LLC members are excluded from coverage by default, since they aren't considered employees, but can voluntarily elect to be included by following a similar notification process under IC 22-3-6-1. Officers of public entities and nonprofits are traditionally excluded but can be added by attaching a specific coverage endorsement to the policy; inactive officers who only attend annual or directors' meetings may have their payroll excluded from premium calculations even when nominally included.
Independent contractors and subcontractors
Indiana carves out genuine independent contractors from its coverage mandate, but the determination follows the state's usual control-and-independence factors rather than resting on how the worker is paid, so a misclassified 1099 worker can still trigger coverage obligations for the hiring business. Collecting a current certificate of insurance from subcontractors before work begins is standard practice to avoid this exposure.
Penalties for going without coverage
Failing to carry required coverage is classified as a Class A infraction under IC 22-3-5-1, Indiana's most serious infraction category, and can bring fines up to $10,000. The Worker's Compensation Board can order a noncompliant employer to cease business in Indiana until proof of insurance is shown, and an injured worker may be awarded compensation up to double the statutory benefit amount, plus medical expenses and reasonable attorney fees; a bad-faith judgment can add fines up to $20,000. Cases can also be referred to county prosecutors for further criminal enforcement.
What injured workers receive
Injured workers receive necessary medical treatment with no dollar cap. Temporary total disability is paid at roughly two-thirds of the worker's average weekly wage, subject to a maximum weekly benefit that increases by statute each July 1 under a scheduled 3% annual adjustment (the maximum is $878 per week for the period July 1, 2026 through June 30, 2027, based on a $1,316 wage ceiling). Permanent disability and death benefits are calculated separately under Indiana's benefit schedule.
How workers' comp is bought in Indiana
Indiana is a competitive market state rated by its own independent bureau, the Indiana Compensation Rating Bureau (ICRB), rather than NCCI, and our agency can compare coverage across the many private carriers writing business here. There is no Indiana state-run workers' comp fund; employers who can't find a voluntary carrier are placed through ICRB's assigned risk mechanism. Because Indiana's officer-exclusion process requires filing with both the carrier and the Worker's Compensation Board before it takes effect, it's worth confirming that paperwork is actually on file rather than assuming a verbal understanding with an agent is enough.
Rating bureau
Indiana Compensation Rating Bureau
Visit ICRBMaintains its own classification system rather than using NCCI codes.
Common Indiana industries we quote
Indiana's small-business economy includes contractors and trades, manufacturing and logistics operations tied to the state's central location and highway network, restaurants and hospitality, salons and personal-care businesses, and professional service firms.
- Auto Repair & Body Shops
- Cleaning & Janitorial Services
- Daycare & Child Care Centers
- Electrical Contractors
- General Contractors & Trades (with employees)
- Home Health Care Agencies
- Hotels & Lodging
- HVAC Contractors
- Landscaping & Lawn Care
- Light Manufacturing & Machine Shops
- Medical & Dental Offices
- Nonprofits & Churches
- Painting Contractors
- Plumbing Contractors
- Professional Offices (accounting, law, consulting, insurance, real estate)
- Restaurants & Food Service
- Retail Stores
- Salons, Barbershops & Spas
- Warehouses & Distribution
Popular class codes
Class codes describe the work your employees perform and drive how payroll is rated. Browse the groups below or search the full lookup.
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Indiana workers' comp questions
Do I need workers' comp for a small Indiana business?
Generally yes. Indiana requires coverage for essentially all employers, with specific statutory exemptions like farm laborers and genuine independent contractors rather than a general small-business exemption.
Can an Indiana corporate officer opt out of coverage?
Yes, but only by filing State Form 36097 with both the insurance carrier and the Worker's Compensation Board; the exclusion isn't effective until both have received it.
Are Indiana LLC members automatically covered?
No. LLC members, along with sole proprietors and partners, are excluded from coverage by default, though they can voluntarily elect to be included.
What happens if an Indiana employer doesn't carry required coverage?
It's a Class A infraction with fines up to $10,000, and the Worker's Compensation Board can order the business to stop operating until it shows proof of insurance; an injured worker can also be awarded up to double the statutory benefit plus attorney fees.
How much does an injured worker get paid in Indiana?
Generally about two-thirds of average weekly wage, capped at a maximum that increases 3% each July 1 by statute.
Is Indiana rated by NCCI?
No. Indiana has its own independent rating bureau, the Indiana Compensation Rating Bureau (ICRB), which files the classifications and loss costs carriers use here.
Sources
- icrb.net — https://www.icrb.net/references/workers-compensation-requirements-and-penalties/
- icrb.net — https://www.icrb.net/references/executive-officer/
- icrb.net — https://www.icrb.net/references/excluded-workers/
- delventhal-law.com — https://delventhal-law.com/blog/indiana-workers-comp-benefit-rates-just-changed-july-1-2026-new-maximum-weekly/
Last reviewed · Reviewed by Provident Financial Group licensed agents
Quote Indiana workers' comp.
One application goes out to every carrier we can access for your class of business. You get a ranked comparison you can review and purchase online — with a licensed agent available whenever you want one.
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