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June 9, 2025
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Indiana workers' compensation insurance: Your guide to requirements and getting a policy
If you’re an Indiana employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation insurance protects both employers and employees from financial loss due to work-related injuries or illnesses. For employees, it typically covers medical treatment and partial wage replacement. For employers, it provides legal protection in the event of job-related claims.
Almost every business in Indiana with employees is required to carry workers’ compensation insurance — regardless of how many employees are on the payroll. This differs from some other states, where coverage may depend on headcount.
Business owners themselves generally need to be covered unless the business is a sole proprietorship or a general partnership. However, even in those cases, owners may opt in for coverage.
Certain local police officers and firefighters
Reserve police officers and hazardous materials volunteers
Executive officers of public/nonprofit corporations
Owner-operators in freight transport
Active members/managers of LLCs
Volunteers listed with a township, city, or county
Volunteers in state-run psychiatric facilities
Casual laborers
Domestic workers
Farm or agricultural workers
Additionally, independent contractors — especially in construction — are not required to be covered if they meet IRS guidelines for independent status.
Some individuals are completely exempt and not eligible for optional coverage:
Railroad workers (covered under the Federal Employers Liability Act)
Maritime workers (e.g., seamen, longshoremen with federal protections)
Real estate agents working as independent contractors
Independent contractors (per state/IRS guidelines)
Scholarship athletes, prison inmates, volunteers, and youth sports coaches
Employers in Indiana can purchase workers’ compensation insurance through private carriers. If the business is considered high-risk, it may be placed into the Indiana Assigned Risk Pool.
Businesses may also choose to self-insure, assuming full responsibility for claims.
Traditional Plans: Based on estimated annual payroll. Premiums are often paid upfront, with adjustments made after a year-end audit.
Pay-as-You-Go Plans: Premiums are calculated per payroll cycle, minimizing surprises and avoiding large upfront payments.
Learn more in Beyond’s pay-as-you-go insurance guide.
Operating without a valid workers’ compensation policy in Indiana comes with serious risks:
Civil penalties up to $100 per day
Willful noncompliance can be charged as a misdemeanor, carrying up to 1 year in jail and $5,000 in fines
Indiana’s two-year statute of limitations allows employees to file claims up to two years after the incident
Employers are also legally required to post a notice in a visible workplace location stating that coverage is in place. This notice must include the insurance carrier’s contact information or the administrator of claims (if self-insured).
If a work-related illness or injury occurs, the employee should immediately notify their supervisor. Delaying notice beyond 30 days could jeopardize their ability to claim benefits.
Having a workers’ comp policy isn’t just about compliance – it’s about protection and peace of mind. For employees, it means knowing help is there if something happens. For employers, it reduces legal exposure and demonstrates care for your team.
If you have questions or need help setting up a policy, the team at Beyond is here to support you.
