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 October 2026.
Indiana at a Glance
| Required at | 1 employee(s) |
| Which workers count | Indiana does not set a minimum headcount. The Act defines “employee” as every person in the service of another under any contract of hire or apprenticeship, written or implied, and that includes minors. This generally covers full-time, part-time and seasonal workers. Construction has no separate threshold because coverage already applies from the first employee. Under IC 22-3-2-14, a contractor that hires an uninsured subcontractor without getting a certificate of insurance or a Board-issued exemption certificate can be liable for injuries to that subcontractor’s workers. |
| Who is exempt | IC 22-3-2-9 says the compensation chapters do not apply to (1) casual laborers, meaning work that is both casual and outside the usual course of the employer’s trade, business, occupation or profession; (2) farm or agricultural employees; and (3) household or domestic employees. Railroad workers covered by the federal FELA are also excluded. Licensed real estate professionals are excluded when they are paid substantially by sales volume and have a written agreement saying they are not employees for tax purposes. Sole proprietors, partners and LLC members/managers are not employees by default. Independent contractors who hold a valid Worker’s Compensation Clearance/Exemption Certificate are treated as exempt. An exempt employer may waive its exemption and accept the Act by giving notice. |
| Penalty for going without | Failing to insure or self-insure as IC 22-3-5-1 requires is a Class A infraction under IC 22-3-4-13 and IC 22-3-5-1, with a fine of up to 10000. If an employer does not give the Board current proof of compliance by the tenth day after receiving the Board’s request, the Board may assess a civil penalty of 50 per employee per day. If an employee of an uninsured employer is injured, IC 22-3-4-13(f) lets the Board award compensation of up to double the normal amount, plus medical expenses and reasonable attorney fees. A court may also order the employer to stop doing business in Indiana until it shows proof of insurance, and the Board may ask a court to enjoin violations. No felony provision for simply failing to insure was found in the sources checked. |
| Monopolistic state? | No — private carriers |
In This Indiana Guide:
Is Workers’ Comp Required in Indiana?
Yes. Indiana generally requires every private employer covered by the Worker’s Compensation Act to carry workers’ compensation insurance or be approved to self-insure once it hires its first employee, unless a specific exemption applies.
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 | Indiana does not set a minimum headcount. The Act defines “employee” as every person in the service of another under any contract of hire or apprenticeship, written or implied, and that includes minors. This generally covers full-time, part-time and seasonal workers. Construction has no separate threshold because coverage already applies from the first employee. Under IC 22-3-2-14, a contractor that hires an uninsured subcontractor without getting a certificate of insurance or a Board-issued exemption certificate can be liable for injuries to that subcontractor’s workers. |
| Who is exempt | IC 22-3-2-9 says the compensation chapters do not apply to (1) casual laborers, meaning work that is both casual and outside the usual course of the employer’s trade, business, occupation or profession; (2) farm or agricultural employees; and (3) household or domestic employees. Railroad workers covered by the federal FELA are also excluded. Licensed real estate professionals are excluded when they are paid substantially by sales volume and have a written agreement saying they are not employees for tax purposes. Sole proprietors, partners and LLC members/managers are not employees by default. Independent contractors who hold a valid Worker’s Compensation Clearance/Exemption Certificate are treated as exempt. An exempt employer may waive its exemption and accept the Act by giving notice. |
| Owners & officers | Sole proprietors are excluded automatically under IC 22-3-6-1. A sole proprietor who works in the business can elect coverage by serving written notice on their insurance carrier. Partners can elect coverage by serving written notice on both their carrier and the Worker’s Compensation Board. LLC members or managers who work in the business can also elect to be covered. Executive officers of for-profit corporations count as employees by default but may elect not to be covered. Officers of nonprofit, municipal or governmental corporations are covered only if they are specifically named in the insurance contract. Independent contractors get exempt status by filing Form WCE-1 with the Indiana Department of Revenue each year. The fee is 20 in total (a 5 DOR fee plus a 15 Board fee), and the certificate lasts one year. |
| Penalty for going without | Failing to insure or self-insure as IC 22-3-5-1 requires is a Class A infraction under IC 22-3-4-13 and IC 22-3-5-1, with a fine of up to 10000. If an employer does not give the Board current proof of compliance by the tenth day after receiving the Board’s request, the Board may assess a civil penalty of 50 per employee per day. If an employee of an uninsured employer is injured, IC 22-3-4-13(f) lets the Board award compensation of up to double the normal amount, plus medical expenses and reasonable attorney fees. A court may also order the employer to stop doing business in Indiana until it shows proof of insurance, and the Board may ask a court to enjoin violations. No felony provision for simply failing to insure was found in the sources checked. |
| Monopolistic state? | No — buy from private carriers |
How to Get Workers’ Comp Coverage in Indiana
Most Indiana employers buy a policy from a private insurer licensed in Indiana. Employers who show they can pay claims directly may instead get Board approval to self-insure. Employers that cannot get coverage in the voluntary market can apply to the Indiana Worker’s Compensation Assigned Risk Plan (the Indiana WCIP). The Indiana Compensation Rating Bureau (ICRB) is the assigned risk pool administrator, using NCCI’s residual market procedures.
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 has an annual independent-contractor exemption certificate (Form WCE-1). The Department of Revenue first confirms the applicant’s taxes are current, then the Worker’s Compensation Board approves the application. Until the Board issues the certificate, the contractor is treated as needing coverage. Indiana sets workers’ comp rates through its own rating bureau (ICRB) rather than through NCCI ratemaking.
Employers must post the Board’s “Notice for Worker’s Compensation and Occupational Diseases Coverage.” Occupational disease coverage is a separate act, IC 22-3-7, with matching exemptions in IC 22-3-7-9. Confirm details with the Worker’s Compensation Board of Indiana and a licensed attorney.
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.
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Frequently Asked Questions
Is workers’ comp required in Indiana?
Yes. Indiana generally requires every private employer covered by the Worker’s Compensation Act to carry workers’ compensation insurance or be approved to self-insure once it hires its first employee, unless a specific exemption applies.
What is the penalty for not having workers’ comp in Indiana?
Failing to insure or self-insure as IC 22-3-5-1 requires is a Class A infraction under IC 22-3-4-13 and IC 22-3-5-1, with a fine of up to 10000. If an employer does not give the Board current proof of compliance by the tenth day after receiving the Board’s request, the Board may assess a civil penalty of 50 per employee per day.
If an employee of an uninsured employer is injured, IC 22-3-4-13(f) lets the Board award compensation of up to double the normal amount, plus medical expenses and reasonable attorney fees. A court may also order the employer to stop doing business in Indiana until it shows proof of insurance, and the Board may ask a court to enjoin violations.
No felony provision for simply failing to insure was found in the sources checked.
Who is exempt from Indiana workers’ comp?
IC 22-3-2-9 says the compensation chapters do not apply to (1) casual laborers, meaning work that is both casual and outside the usual course of the employer’s trade, business, occupation or profession; (2) farm or agricultural employees; and (3) household or domestic employees. Railroad workers covered by the federal FELA are also excluded.
Licensed real estate professionals are excluded when they are paid substantially by sales volume and have a written agreement saying they are not employees for tax purposes. Sole proprietors, partners and LLC members/managers are not employees by default. Independent contractors who hold a valid Worker’s Compensation Clearance/Exemption Certificate are treated as exempt. An exempt employer may waive its exemption and accept the Act by giving notice.
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
These Indiana workers comp requirements were last verified against official sources in October 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
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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.