Workers' Compensation by state

Workers' compensation requirements in Indiana

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Does Indiana require workers' compensation insurance?

Yes. Indiana requires workers' compensation coverage once a business has one or more employees, under the Indiana Worker's Compensation Act. Indiana requires most employers with one or more employees to carry workers' compensation coverage. Coverage is obtained from private insurers or through an approved self-insurance program.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Indiana requires most employers with one or more employees to carry workers' compensation coverage. Coverage is obtained from private insurers or through an approved self-insurance program.

Coverage trigger: One or more employees
If you go without coverage: Failing to carry required coverage can result in civil penalties, business closure orders, and direct liability for an injured worker's damages.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors, partners, and LLC members, who may elect coverage
Certain real estate professionals paid by commission
Some casual labor and household employees

Statutes and sources

Indiana Worker's Compensation Act

Ind. Code sect. 22-3-1 et seq.

Regulator: Workers' Compensation Board of Indiana . Last verified 2026-07-29 from the official source .

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