Indiana workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Indiana workers comp requirements in plain English. (Injured instead of hiring? See our Indiana settlement and claim guides linked below.) All figures are from Indiana sources, verified as of June 2026.
Indiana at a Glance
| Required at | 1 employee(s) |
| Which workers count | All employees count from the first one — full-time, part-time, and seasonal workers all trigger the mandate; there is no minimum-payroll or minimum-headcount exception, and construction/building independent contractors must annually file a Workers’ Compensation Clearance Certificate (20 filing fee) with the Board to be treated as exempt. |
| Who is exempt | Sole proprietors, partners, and LLC members are excluded by default (not counted) unless they elect coverage; corporate officers are covered by default but may elect out. Also excluded under IC 22-3-6-1: casual laborers, farm/agricultural employees, household/domestic employees, certain licensed real estate professionals, and railroad workers covered by federal law (FELA). |
| Penalty for going without | Failure to carry required coverage is a Class A infraction under IC 22-3-4-13 with fines up to 10000 per violation, plus civil penalties of up to 50 per day per uncovered employee; the Board may also issue a stop-work order requiring the employer to cease all business in Indiana until coverage and penalties are satisfied, and may require proof of insurance every 6 months for up to 3 years. |
| Monopolistic state? | No — private carriers |
In This Indiana Guide:
Is Workers’ Comp Required in Indiana?
Yes — Indiana requires nearly every employer to carry workers’ compensation insurance from the moment they hire their first employee.
Indiana Workers’ Comp Requirements at a Glance
Here are the exact Indiana workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employees count from the first one — full-time, part-time, and seasonal workers all trigger the mandate; there is no minimum-payroll or minimum-headcount exception, and construction/building independent contractors must annually file a Workers’ Compensation Clearance Certificate (20 filing fee) with the Board to be treated as exempt. |
| Who is exempt | Sole proprietors, partners, and LLC members are excluded by default (not counted) unless they elect coverage; corporate officers are covered by default but may elect out. Also excluded under IC 22-3-6-1: casual laborers, farm/agricultural employees, household/domestic employees, certain licensed real estate professionals, and railroad workers covered by federal law (FELA). |
| Owners & officers | Yes. Corporate officers are included by default but may exclude themselves by serving written notice on their insurance carrier and the Worker’s Compensation Board. Sole proprietors, partners, and LLC members are excluded by default but may elect to be covered as employees by serving written notice of the election on the carrier (and the Board for partners). |
| Penalty for going without | Failure to carry required coverage is a Class A infraction under IC 22-3-4-13 with fines up to 10000 per violation, plus civil penalties of up to 50 per day per uncovered employee; the Board may also issue a stop-work order requiring the employer to cease all business in Indiana until coverage and penalties are satisfied, and may require proof of insurance every 6 months for up to 3 years. |
| Monopolistic state? | No — buy from private carriers |
How to Get Workers’ Comp Coverage in Indiana
Buy a policy from any private insurer authorized to write workers’ comp in Indiana; employers unable to obtain voluntary coverage (after being declined by three carriers) apply through the Indiana Workers Compensation Insurance Plan (assigned-risk/Indiana Reinsurance Pool) administered by the Indiana Compensation Rating Bureau (ICRB). Indiana is NOT an NCCI assigned-risk state — the ICRB handles assigned risk and rate-making. Large employers may also self-insure with Board approval.
Private market: YES
What Workers’ Comp Covers in Indiana
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Indiana policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Indiana
The most common way employers get the Indiana workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Indiana decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Indiana workers’-comp rules: Indiana rates and assigned-risk placement run through the Indiana Compensation Rating Bureau (ICRB), not NCCI directly. Employers must post a notice listing the workers’ comp carrier/administrator where employees can see it, and must file an Employer’s Report of Injury with the insurer (copy to the employee) within 7 days of a claimed injury.
Construction/building independent contractors must obtain an annual Workers’ Compensation Clearance Certificate (Affidavit of Exemption) from the Board.
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Understanding Indiana Workers Comp Requirements
The Indiana workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Indiana workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Indiana workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Indiana workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Indiana shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Indiana?
Yes — Indiana requires nearly every employer to carry workers’ compensation insurance from the moment they hire their first employee.
What is the penalty for not having workers’ comp in Indiana?
Failure to carry required coverage is a Class A infraction under IC 22-3-4-13 with fines up to 10000 per violation, plus civil penalties of up to 50 per day per uncovered employee; the Board may also issue a stop-work order requiring the employer to cease all business in Indiana until coverage and penalties are satisfied, and may require proof of insurance every 6 months for up to 3 years.
Who is exempt from Indiana workers’ comp?
Sole proprietors, partners, and LLC members are excluded by default (not counted) unless they elect coverage; corporate officers are covered by default but may elect out. Also excluded under IC 22-3-6-1: casual laborers, farm/agricultural employees, household/domestic employees, certain licensed real estate professionals, and railroad workers covered by federal law (FELA).
Official Indiana Sources & Resources
- Indiana Worker’s Compensation Board of Indiana: https://www.in.gov/wcb/
- Indiana Workers’ Comp Statute: https://iga.in.gov/laws/2023/ic/titles/22 (Indiana Code Title 22, Article 3 — Worker’s Compensation System)
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Indiana workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Indiana Workers’ Comp Guides
- Indiana Workers’ Comp Settlements
- How to File a Indiana Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
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.