Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Indiana

In Indiana, most businesses with employees are required to have workers compensation insurance. This insurance provides coverage for medical expenses and lost wages if an employee is injured on the job.

When Is Workers Compensation Insurance Required?

• Employers with one or more employees: Generally must carry workers compensation insurance.
• Construction businesses: Required to have coverage regardless of the number of employees.
• Non-construction businesses: Required if they have at least one employee.
• Corporate officers and sole proprietors: May opt out but should carefully assess risks and compliance.

Operational Considerations

• Business registration: Ensure your business is properly registered with the Indiana Secretary of State before obtaining insurance.
• Insurance providers: Work with licensed Indiana insurance carriers or the Indiana Workers’ Compensation Insurance Plan if coverage is hard to obtain.
• Payroll and recordkeeping: Maintain accurate employee records and payroll information to support insurance reporting and claims.
• Compliance: Keep up to date with state reporting requirements and renew insurance policies annually.
• Employee classification: Correctly classify employees to avoid insurance coverage gaps or penalties.

As of 2026, businesses should verify current requirements with the Indiana Worker’s Compensation Board or a licensed insurance agent to ensure compliance and operational readiness.