FAQ: Workers' Compensation Insurance in Indiana

Workers' compensation insurance in Indiana helps protect your business as well as your staff. This policy pays for  medical expenses and lost wages of employees that become injured or ill as a result of doing their job. 

The cost of workers' compensation insurance for your Indiana business will vary, similar to other commercial coverages. Rates are determined within a present range from low to high. Where you fall in this range depends on your risk factors. Here are some current workers' compensation rates in Indiana, per $100 of employer payroll: 

IndustryLow CostHigh Cost
Door & Window Installers$2.07$2.78
Plumbing Contractors$1.04$1.40
Electrical Work-Electrician$1.10$1.48
Concrete Work-Flat Work Cement$1.67$2.24
Poll Installation & Maintenance$2.94$3.94

Yes. Indiana requires that all employers with one or more employees carry workers' compensation insurance. This policy needs to meet or exceed the state's minimum limits. If you're found without proper protection, you could be penalized. 

In Indiana, workers' compensation insurance will cover a variety of incidents that could occur under a workers' compensation loss. Some of these include the following: 

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Exclusions apply to all commercial policies. Your Indiana workers' compensation insurance will not usually provide coverage for the following incidents:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

A certificate is proof of insurance showing your limits of coverage and expiration dates. A workers' compensation certificate of insurance is required by some individuals, clients, companies, and municipalities that you may do business with. Your local independent insurance agent can obtain this evidence of insurance. 

You'll have options when you're searching for the best workers' compensation insurance. In Indiana, top-rated carriers with competitive pricing can easily be found through an independent insurance agent. Since they work with dozens of markets at once, you'll get the perfect policy for your operation.

In Indiana, the workers' compensation benefits that your employees receive will not be considered taxable income by the IRS. However, consulting with your tax professional on your exact specifics is necessary. 

Find Workers' Compensation Insurance Near You

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Indiana

If you're an employer of one or more employees in Indiana, you must carry workers' compensation coverage for your staff. Coverage must meet the state minimum limits or greater to avoid fines or jail time. This policy protects the business as well as the employees. 


Common Workers' Compensation Claims in Indiana


The Top 5 industries with the most fatal occupational injuries:

  1. Construction
  2. Transportation and warehousing
  3. Manufacturing
  4. Crop farming
  5. Landscaping


The Top 6 most reported fatal occupational injuries:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires
  4. Falls, slips, trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment


Sometimes work-related accidents or diseases cause significant loss and even death. In Indiana, 158 occupational injuries turned fatal in one recent year. When this occurs, your workers' compensation policy is there to help with funeral costs.