Indiana workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the Indiana workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from Indiana sources, verified as of June 2026.
In This Indiana Guide:
Is Workers’ Comp Required in Indiana?
Yes, workers compensation insurance is required in Indiana for all employers with one or more employees, with no minimum employee threshold
Indiana Workers’ Comp Requirements at a Glance
Here are the exact Indiana workers compensation requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employees count toward the threshold including full-time, part-time, minor, and seasonal workers; coverage is required from the first employee’s first day of work |
| Who is exempt | Sole proprietors, partners, and LLC members are excluded by default but may opt in; agricultural/farm employees limited to traditional crop and livestock labor, casual laborers, domestic/household employees, railroad employees covered under FELA, federal employees covered by federal compensation law, licensed real estate agents whose compensation is substantially commission-based with a written independent contractor agreement, independent contractors who file a Certificate of Exemption under IC 22-3-2-14.5, volunteers for 501(c)(3) nonprofits performing youth coaching services, and scholarship athletes |
| Owners & officers | Sole proprietors, partners, and LLC members are automatically excluded but may elect coverage by written notice to their insurer; corporate officers and stockholders are included by default but may apply for exclusion using State Form 36097 filed with the Worker’s Compensation Board |
| Penalty for going without | Noncompliant employers face a fine of 50 per employee per day of noncompliance; the Board may order the employer to cease doing business in Indiana until proof of insurance is provided; injured employees of uninsured employers may be awarded up to double the normal compensation plus all medical expenses plus reasonable attorney fees; failure to carry coverage is a Class A misdemeanor punishable by up to 1 year incarceration and a fine of up to 5000; employers who provide proof of insurance within 20 days of a noncompliance notice may have the daily penalty waived; noncompliant employers are publicly listed on the Board website |
| Monopolistic state? | No — buy from private carriers |
| State fund | Indiana does not operate a competitive state fund; coverage is obtained through private carriers or the assigned risk pool administered by the Indiana Compensation Rating Bureau (ICRB) |
How to Get Workers’ Comp Coverage in Indiana
Indiana employers obtain coverage by purchasing a policy from a private insurance carrier licensed in the state; employers who cannot obtain coverage in the voluntary market may apply through the Indiana assigned risk pool; qualifying employers may also apply for self-insurance approval through the Worker’s Compensation Board by demonstrating financial ability to pay claims directly
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. That trade-off is the practical heart of the Indiana workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in Indiana
The most common way owners get the Indiana workers compensation 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 a 20-day cure period where employers who receive a noncompliance notice and provide proof of insurance within 20 days may have the daily per-employee penalty waived; noncompliant employers are publicly listed on the Board website; the agricultural exemption is narrowly construed and limited to traditional crop and livestock labor with the burden of proof on the employer;
independent contractors may file an Affidavit of Exemption with the Board under IC 22-3-2-14.5 which is also reported to the Department of Revenue for tax treatment purposes
Understanding Indiana Workers Compensation Requirements
The Indiana workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the Indiana workers compensation requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
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Once you hit that count, Indiana workers compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the Indiana workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in Indiana actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in Indiana?
Yes, workers compensation insurance is required in Indiana for all employers with one or more employees, with no minimum employee threshold
What is the penalty for not having workers’ comp in Indiana?
Noncompliant employers face a fine of 50 per employee per day of noncompliance; the Board may order the employer to cease doing business in Indiana until proof of insurance is provided; injured employees of uninsured employers may be awarded up to double the normal compensation plus all medical expenses plus reasonable attorney fees;
failure to carry coverage is a Class A misdemeanor punishable by up to 1 year incarceration and a fine of up to 5000; employers who provide proof of insurance within 20 days of a noncompliance notice may have the daily penalty waived; noncompliant employers are publicly listed on the Board website
Who is exempt from Indiana workers’ comp?
Sole proprietors, partners, and LLC members are excluded by default but may opt in; agricultural/farm employees limited to traditional crop and livestock labor, casual laborers, domestic/household employees, railroad employees covered under FELA, federal employees covered by federal compensation law, licensed real estate agents whose compensation is substantially commission-based with a written independent contractor agreement, independent contractors who file a Certificate of Exemption under IC 22-3-2-14.5,
volunteers for 501(c)(3) nonprofits performing youth coaching services, and scholarship athletes
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/2025/ic/titles/22/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These Indiana workers compensation 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 Business Insurance Guides
Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.