Indiana law requires every business operating in the state to provide workers’ compensation insurance to their employees, with certain exceptions.
Most businesses with employees in Indiana must have workers’ compensation insurance to provide protection against workplace injuries and illnesses. Unlike workers’ comp laws in some states, the number of employees at a business has no bearing on the requirement.
The requirement of workers’ comp in Indiana applies to full-time employees, company executives, employees working outside the state (as long as they have an Indiana working relationship), part-time employees, minor employees, and certain students receiving federally funded on-the-job training.
Some employees are exempt from Indiana workers’ compensation insurance and also are ineligible to elect optional coverage. These include:
In most cases, you must include yourself in your company’s workers’ compensation coverage. However, there are two key exceptions:
In both of these cases, you don’t have to buy workers’ compensation for yourself. But you can if you think you need it. For example, if you do physical labor and are at risk of getting injured, it might make sense to include yourself in your workers’ compensation policy.
Some people aren’t required to have workers’ compensation coverage. But business owners can elect to include them under their insurance policy. This option applies to:
If you’re an independent contractor in the construction trades, those who hire you are not required to provide you with workers’ compensation insurance as long as you meet the IRS tests for independent contractor status. You can find these in IRS Publication 15-A, Employer’s Supplemental Tax Guide. If you meet those tests, you must then fill out a Workers’ Compensation Clearance Certificate with the Workers’ Compensation Board of Indiana and pay a $20 filing fee.
These requirements also apply to independent contractors who are sole proprietors.
Indiana business owners can compare quotes and purchase a policy from private insurance companies. (Insureon offers this service with its online insurance marketplace.)
Some employers receive state approval to self-insure their workers’ compensation claims. This means they pay for their employees’ medical and rehabilitation expenses after a workplace incident out of their own pockets.
Estimated employer costs for workers’ compensation in Indiana are $0.81 per $100 in covered payroll, according to the National Academy of Social Insurance [PDF].
If you are ready to explore workers’ comp insurance options for your Indiana business, start a free online application today to compare quotes from top-rated carriers.