Indiana's no-fault Workers' Compensation system requires that most businesses with employees carry Workers' Compensation coverage. Approved businesses may self-insure and sole proprietors or LLC members are automatically excluded unless optional coverage is chosen.
Most railroad employees and independent contractors are excluded from Indiana's Workers' Compensation coverage requirements. Sole proprietors or LLC members can choose Workers' Compensation coverage for themselves as an option but are not required to carry coverage.
As in most states, Indiana requires employers to post a notice in a conspicuous area detailing the basic covered provisions of Workers' Compensation. New hires and existing employees should be made aware of their coverage and of how to file a claim. Indiana employers are required to keep a record of all injuries.
Indiana can impose fines of $300 for failure to post a required notice informing employees of coverage. For failure to carry required Workers’ Compensation coverage, employers can face fines of up to $5,000 as well as criminal charges.
Who Must Purchase Workers' Compensation Insurance in Indiana?
Indiana requires Workers' Compensation coverage for nearly all businesses with employees. Sole proprietors, LLC members, and partners are excluded from coverage requirements. However, they can choose to be included if they prefer. Independent contractors are not covered by Workers' Compensation in Indiana.
What Does Indiana Workers' Compensation Cover?
Similar to its structure in other states, Workers' Compensation coverage in Indiana is a no-fault system which can pay for medical bills for work-related injuries or occupational illnesses. Workers' Compensation coverage also provides income replacement for lost wages due to a temporary inability to work as determined by a physician. Vocational rehabilitation benefits are also available for workers whose injuries prevent them from returning to the same job.
How Is Indiana Workers' Compensation Calculated?
Indiana's provision for temporary income due to a work-related injury or illness is paid at 2/3 your average weekly wages, subject to a maximum weekly pay which can change annually as determined by the state. Indiana Workers' Compensation also provides partial income benefits if you are able to work part-time but are unable to return to full-time work.
Where Do I Purchase Indiana Workers' Compensation Insurance?
Employers who need to purchase Workers' Compensation coverage in Indiana can buy coverage through an agent or broker licensed to sell business insurance within the state. Online insurance portals, like CoverWallet, can help you buy Workers' Compensation coverage for your business, as well as other essential business insurance policies.