An Indiana workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — By default, sole proprietors, partners, and LLC members/managers are not “employees” under the Indiana Act, so they are not covered unless they elect in by filing State Form 36097 (IC 22-3-6-1(b)). Corporate executive officers are employees by default.
An officer who is an employee, or who owns any interest in the corporation, may elect not to be an employee. There is no ownership-percentage minimum and no limit on how many officers may elect out. Independent contractors, sole proprietors, partners and LLC members/managers who want proof of exempt status get a Certificate of Exemption through the WCE-1 process.
Confirm current eligibility with the Worker’s Compensation Board of Indiana and a licensed attorney. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Indiana workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Indiana sources as of October 2026.
Indiana at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | By default, sole proprietors, partners, and LLC members/managers are not “employees” under the Indiana Act, so they are not covered unless they elect in by filing State Form 36097 (IC 22-3-6-1(b)). Corporate executive officers are employees by default. An officer who is an employee, or who owns any interest in the corporation, may elect not to be an employee. There is no ownership-percentage minimum and no limit on how many officers may elect out. Independent contractors, sole proprietors, partners and LLC members/managers who want proof of exempt status get a Certificate of Exemption through the WCE-1 process. Confirm current eligibility with the Worker’s Compensation Board of Indiana and a licensed attorney. |
| Exemption form | Form WCE-1, “Application for Worker’s Compensation Clearance Certificate” (State Form 45899). It is used to get a Certificate of Exemption for independent contractors and owners not required to carry coverage. Separate form for elections: State Form 36097, “Notice for Worker’s Compensation and Occupational Diseases Coverage,” used to elect into coverage. Corporate officers opting out serve written notice on the carrier and the Board. |
| Filed with | The WCE-1 goes to the Indiana Department of Revenue. You can file online through INTIME (https://intime.dor.in.gov), which is the fastest route; the certificate is emailed to you. You can also mail it to Indiana Department of Revenue, P.O. Box 2305, Indianapolis, IN 46206-2305. DOR confirms that all Indiana tax returns are filed and any tax debts are paid, then forwards the clearance to the Worker’s Compensation Board, which issues the Certificate of Exemption. Allow 2 to 3 weeks at DOR plus 7 days at the Board. Information pages: https://www.in.gov/dor/i-am-a/business-corp/contractors/workers-comp/ and https://www.in.gov/wcb/independent-contractors. Officer exclusion notices go to the insurance carrier and the Board. |
| Filing fee | $20 (5 non-refundable to the Department of Revenue plus 15 to the Worker’s Compensation Board; paper filers pay by money order or certified check) |
In This Indiana Guide:
Who Qualifies for An Indiana Workers Comp Exemption
By default, sole proprietors, partners, and LLC members/managers are not “employees” under the Indiana Act, so they are not covered unless they elect in by filing State Form 36097 (IC 22-3-6-1(b)). Corporate executive officers are employees by default. An officer who is an employee, or who owns any interest in the corporation, may elect not to be an employee.
There is no ownership-percentage minimum and no limit on how many officers may elect out. Independent contractors, sole proprietors, partners and LLC members/managers who want proof of exempt status get a Certificate of Exemption through the WCE-1 process. Confirm current eligibility with the Worker’s Compensation Board of Indiana and a licensed attorney.
IC 22-3-6-1(b). An executive officer elected or appointed under a corporation’s charter and bylaws is an employee of the corporation. This does not apply to municipal corporations, governmental subdivisions, or charitable, religious, educational or other nonprofit corporations. An officer who is an employee of the corporation, or who owns any interest in it, may elect not to be an employee.
The officer must serve written notice of the election on the corporation’s insurance carrier and on the Board. The officer is not considered excluded until both have received the notice. Older code versions (2011) limited this election to the “sole officer” of the corporation.
IC 22-3-6-1(b). Partners in a partnership and members or managers of an LLC are not employees by default and are not covered. A partner, or an LLC member or manager who is actually engaged in the business, may elect to be included as an employee. The election is made with State Form 36097, “Notice for Worker’s Compensation and Occupational Diseases Coverage,” and takes effect only after the notice is received.
Sole proprietors follow the same elect-in rule.
How to File the Indiana Workers Comp Exemption
The form is Form WCE-1, “Application for Worker’s Compensation Clearance Certificate” (State Form 45899). It is used to get a Certificate of Exemption for independent contractors and owners not required to carry coverage. Separate form for elections: State Form 36097, “Notice for Worker’s Compensation and Occupational Diseases Coverage,” used to elect into coverage. Corporate officers opting out serve written notice on the carrier and the Board..
It is filed with The WCE-1 goes to the Indiana Department of Revenue. You can file online through INTIME (https://intime.dor.in.gov), which is the fastest route; the certificate is emailed to you. You can also mail it to Indiana Department of Revenue, P.O. Box 2305, Indianapolis, IN 46206-2305.
DOR confirms that all Indiana tax returns are filed and any tax debts are paid, then forwards the clearance to the Worker’s Compensation Board, which issues the Certificate of Exemption. Allow 2 to 3 weeks at DOR plus 7 days at the Board. Information pages: https://www.in.gov/dor/i-am-a/business-corp/contractors/workers-comp/ and https://www.in.gov/wcb/independent-contractors. Officer exclusion notices go to the insurance carrier and the Board..
The fee is $20 (5 non-refundable to the Department of Revenue plus 15 to the Worker’s Compensation Board; paper filers pay by money order or certified check). Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
Indiana Workers Comp Exemption Rules at a Glance
The exact Indiana workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | By default, sole proprietors, partners, and LLC members/managers are not “employees” under the Indiana Act, so they are not covered unless they elect in by filing State Form 36097 (IC 22-3-6-1(b)). Corporate executive officers are employees by default. An officer who is an employee, or who owns any interest in the corporation, may elect not to be an employee. There is no ownership-percentage minimum and no limit on how many officers may elect out. Independent contractors, sole proprietors, partners and LLC members/managers who want proof of exempt status get a Certificate of Exemption through the WCE-1 process. Confirm current eligibility with the Worker’s Compensation Board of Indiana and a licensed attorney. |
| Corporate officers | IC 22-3-6-1(b). An executive officer elected or appointed under a corporation’s charter and bylaws is an employee of the corporation. This does not apply to municipal corporations, governmental subdivisions, or charitable, religious, educational or other nonprofit corporations. An officer who is an employee of the corporation, or who owns any interest in it, may elect not to be an employee. The officer must serve written notice of the election on the corporation’s insurance carrier and on the Board. The officer is not considered excluded until both have received the notice. Older code versions (2011) limited this election to the “sole officer” of the corporation. |
| LLC members and partners | IC 22-3-6-1(b). Partners in a partnership and members or managers of an LLC are not employees by default and are not covered. A partner, or an LLC member or manager who is actually engaged in the business, may elect to be included as an employee. The election is made with State Form 36097, “Notice for Worker’s Compensation and Occupational Diseases Coverage,” and takes effect only after the notice is received. Sole proprietors follow the same elect-in rule. |
| Workers exempt by law | IC 22-3-2-9 excludes three groups: (1) casual laborers, meaning work that is both casual and outside the usual course of the employer’s trade or business; (2) farm or agricultural employees, limited to traditional farm labor tending crops and livestock; and (3) household (domestic) employees. An exempt employer may waive the exemption by giving notice. Real estate professionals are not employees if all three of these apply: they are licensed real estate agents, substantially all of their pay is tied to sales volume rather than hours worked, and they have a written agreement with the broker saying they are not treated as employees for tax purposes (IC 22-3-6-1(b)). A construction-trades worker is an independent contractor, not an employee, if they meet IRS independent-contractor guidelines (IC 22-3-6-1(b)(7)). Proof of exempt status is the Board’s Certificate of Exemption. |
| Form | Form WCE-1, “Application for Worker’s Compensation Clearance Certificate” (State Form 45899). It is used to get a Certificate of Exemption for independent contractors and owners not required to carry coverage. Separate form for elections: State Form 36097, “Notice for Worker’s Compensation and Occupational Diseases Coverage,” used to elect into coverage. Corporate officers opting out serve written notice on the carrier and the Board. |
| Where to file | The WCE-1 goes to the Indiana Department of Revenue. You can file online through INTIME (https://intime.dor.in.gov), which is the fastest route; the certificate is emailed to you. You can also mail it to Indiana Department of Revenue, P.O. Box 2305, Indianapolis, IN 46206-2305. DOR confirms that all Indiana tax returns are filed and any tax debts are paid, then forwards the clearance to the Worker’s Compensation Board, which issues the Certificate of Exemption. Allow 2 to 3 weeks at DOR plus 7 days at the Board. Information pages: https://www.in.gov/dor/i-am-a/business-corp/contractors/workers-comp/ and https://www.in.gov/wcb/independent-contractors. Officer exclusion notices go to the insurance carrier and the Board. |
| Fee | $20 (5 non-refundable to the Department of Revenue plus 15 to the Worker’s Compensation Board; paper filers pay by money order or certified check) |
| Proof of exemption or coverage | Covered employers give a certificate of insurance from their carrier. Exempt contractors and owners give the Board-issued Certificate of Exemption, which is valid for 1 year. General contractors and clients can check coverage with the Board’s online “Confirm Employer’s Worker’s Comp Coverage” lookup and its Contractor Search on https://www.in.gov/wcb/. |
What An Indiana Workers Comp Exemption Gives Up
An exempt or excluded owner, partner, member or officer generally gets no Indiana workers’ comp benefits if injured on the job: no medical, wage-replacement or death benefits under the Act. They would have to rely on their own health, disability or life insurance. An exemption covers only the owner. Any employees of the business must still be covered.
Confirm how an exclusion affects the right to sue with a licensed attorney.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not an Indiana workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
Workers Exempt by Law in Indiana
IC 22-3-2-9 excludes three groups: (1) casual laborers, meaning work that is both casual and outside the usual course of the employer’s trade or business; (2) farm or agricultural employees, limited to traditional farm labor tending crops and livestock; and (3) household (domestic) employees. An exempt employer may waive the exemption by giving notice.
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Real estate professionals are not employees if all three of these apply: they are licensed real estate agents, substantially all of their pay is tied to sales volume rather than hours worked, and they have a written agreement with the broker saying they are not treated as employees for tax purposes (IC 22-3-6-1(b)).
A construction-trades worker is an independent contractor, not an employee, if they meet IRS independent-contractor guidelines (IC 22-3-6-1(b)(7)). Proof of exempt status is the Board’s Certificate of Exemption.
Proving An Indiana Workers Comp Exemption or Coverage
Covered employers give a certificate of insurance from their carrier. Exempt contractors and owners give the Board-issued Certificate of Exemption, which is valid for 1 year. General contractors and clients can check coverage with the Board’s online “Confirm Employer’s Worker’s Comp Coverage” lookup and its Contractor Search on https://www.in.gov/wcb/.
Why the Indiana Workers Comp Exemption Matters
The Indiana workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. The Department of Revenue does a tax clearance first: the Certificate of Exemption is not issued unless all Indiana tax returns are filed and any tax debts are paid in full (IC 6-3-7-5).
Until the Board actually issues the Certificate of Exemption, an independent contractor is treated as required to be covered. A contractor who hires an uninsured or uncertified subcontractor may be liable for that subcontractor’s workers’ injuries. Board Ombudsman Division: 402 W. Washington St., Rm W196, Indianapolis, IN 46204; (317) 232-3808.
If the Indiana workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the Indiana requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in Indiana?
By default, sole proprietors, partners, and LLC members/managers are not “employees” under the Indiana Act, so they are not covered unless they elect in by filing State Form 36097 (IC 22-3-6-1(b)). Corporate executive officers are employees by default. An officer who is an employee, or who owns any interest in the corporation, may elect not to be an employee.
There is no ownership-percentage minimum and no limit on how many officers may elect out. Independent contractors, sole proprietors, partners and LLC members/managers who want proof of exempt status get a Certificate of Exemption through the WCE-1 process. Confirm current eligibility with the Worker’s Compensation Board of Indiana and a licensed attorney.
What form is the Indiana workers comp exemption?
Form WCE-1, “Application for Worker’s Compensation Clearance Certificate” (State Form 45899). It is used to get a Certificate of Exemption for independent contractors and owners not required to carry coverage. Separate form for elections: State Form 36097, “Notice for Worker’s Compensation and Occupational Diseases Coverage,” used to elect into coverage. Corporate officers opting out serve written notice on the carrier and the Board..
File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Indiana still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official Indiana Sources & Resources
- Indiana Worker’s Compensation Board of Indiana: https://www.in.gov/wcb/
- Indiana Workers’ Comp Statute: https://iga.in.gov/ic/2026/Title_22/Article_3.pdf
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Indiana workers comp exemption guide was last verified against official Indiana sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.