Direct Answer
Most Indiana businesses with employees are required to carry workers’ compensation insurance. This coverage helps protect both employees and business owners if a work-related injury or illness occurs.
What Workers’ Compensation Insurance Covers
Workers’ compensation insurance can help cover:
Medical expenses for work-related injuries
Lost wages while an employee recovers
Rehabilitation costs
Disability benefits
Protection for employers from certain lawsuits
This coverage is designed to support employees while limiting financial risk for business owners.
Which Indiana Businesses Typically Need Workers’ Comp
Workers’ compensation is commonly required if you:
Have one or more employees
Hire part-time or full-time workers
Operate in higher-risk industries such as construction, trades, or manufacturing
Even office-based businesses may be required to carry coverage depending on payroll and job duties.
Are Independent Contractors Covered?
Independent contractors are generally not covered under workers’ compensation policies — but misclassification is a common issue.
If workers are classified incorrectly, a business owner may still be held responsible for injuries, fines, or back premiums.
Indiana-Specific Insight
Many Central Indiana businesses — especially contractors and trade professionals — are required to carry workers’ compensation not only by law, but also to meet job site, contract, or vendor requirements.
If you’re unsure whether your business needs workers’ compensation insurance, a local Indiana insurance broker can help review your situation and explain your responsibilities clearly.
