Indiana Workers’ Compensation

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What can be covered by Indiana Workers’ Comp insurance?

Medical expenses

Medical expenses

Like exams, treatment and rehabilitation.
Lost wages

Lost wages

For employee recovery after a work injury.


To teach injured employees new skills if they can no longer do their jobs.
Permanent injury

Permanent injury

Benefits for employees who can no longer work due to injury.

Table of Contents

Is Indiana Workers’ Compensation insurance required?

Indiana state law requires most employers to carry workers’ compensation insurance for their employees. While there are some exceptions, the requirement applies to all businesses with one or more employees.

With an added business owner’s policy, workers’ comp can also cover the business owner to help the business’ financial liability when workplace injuries or illnesses occur.

Employers have other responsibilities that extend beyond just workers’ comp coverage. Indiana employers must also:

  • Keep a record of all employee injuries.
  • Report employee injuries to their insurance carrier within seven days.
  • Post a notice of insurance in their place of business that includes the insurance carrier’s name and contact information.

In Indiana, employees are covered by their employers’ workers’ comp insurance even when working out of state or in a foreign country.

Civil penalties may be imposed on Indiana businesses who violate the workers’ compensation law, such as failing to report an injury within the required time frame or not posting a notice of insurance coverage in the workplace. The schedule of penalties for these violations is:

  • $50 for the first violation
  • $150 for the second violation
  • $300 for the third violation

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How does Workers’ Comp work in Indiana?

If a work-related injury or illness occurs, workers’ compensation insurance helps employers to pay for benefits like:

  • Medical treatment
  • Lost wages
  • Vocational rehabilitation
  • Death benefits

Common types of workers’ compensation income benefits in Indiana include:

  • Temporary partial disability: An injury forces the employee to work in a limited capacity until they are recovered.
  • Permanent partial impairment: An injury has permanent effects which affect the employee’s ability to work in the same capacity.
  • Temporary total disability: An injury is severe enough to prevent the employee from returning to work until they are sufficiently recovered.
  • Total permanent disability: An injury is severe enough to permanently limit the employee’s ability to work.

If an employee dies due to a work-related injury or illness, their dependents may be eligible for death benefits for surviving dependents and funeral expenses covered by workers’ compensation.

Learn more about workers’ compensation coverage.

How much is Workers’ Compensation in Indiana?

Workers’ compensation costs vary across industries. Factors that influence price include:

  • The number of employees and the type of work they do.
  • Your total payroll.
  • Your insurance claims history.
  • The locations where you do business.

Get a free instant quote in about 10 minutes from NEXT to see your workers’ comp insurance costs.

Who is exempt from Indiana Workers’ Comp insurance?

Some employees are exempt from the Indiana workers’ compensation insurance requirement, including:

  • Railroad employees
  • Employees in federal commerce
  • Real estate professionals
  • Independent contractors
  • Athletes on scholarship
  • Inmates of penal institutions
  • Volunteers

Though it may not be a requirement, employers can still get the benefits of workers’ comp coverage for these employees.

Other exceptions to the Indiana workers’ compensation mandate include some business owners who can opt out of coverage for themselves, including:

  • Independent contractors
  • Sole proprietors 
  • Partners in a partnership
  • Limited liability company (LLC) members or managers

Business owners who wish to be exempt must get a worker’s compensation exemption certificate clearance from the Indiana Department of Revenue.

Even if you’re not required to have coverage as a business owner, workers’ comp can be a good idea to help cover expenses in case an accident occurs on the job.

How NEXT helps Indiana small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

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Other important small business insurance policies in Indiana

Workers’ compensation insurance provides many important protections, but you’ll need additional coverage to protect from all the risks your small business can face.
Many Indiana small businesses also consider:
General Liability
General Liability insurance

General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

If you or your employees drive vehicles for work, you probably need commercial auto insurance. This provides coverage for accident-related expenses in a business-owned vehicle or a personal vehicle being used for work purposes.

Commercial Property
Commercial Property insurance

Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.

Errors & Omissions
Professional Liability insurance

Professional liability insurance, also called errors & omissions insurance, provides financial protection against claims of professional mistakes and negligence.

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.