Key Takeaways
- Indiana requires workers' compensation for all employers with one or more employees
- Coverage can be obtained through private carriers, self-insurance, or the Indiana Assigned Risk Pool
- Sole proprietors, partners, and LLC members are excluded but may elect coverage
- Failure to provide coverage is a criminal misdemeanor with fines up to $5,000 and potential imprisonment
- Employees are covered from their first day of employment with a two-year statute of limitations
Indiana Workers' Compensation Insurance
Coverage Requirements
Under Indiana Code 22-3-2-2, workers' compensation is required for all employers with one or more employees.
Who is Covered?
- Full-time employees
- Part-time employees
- Company executives
- Minor employees
- Out-of-state employees with Indiana working relationship
- Students in federally funded on-the-job training
Exemptions
- Sole proprietors (may elect coverage)
- Partners (may elect coverage)
- LLC members (may elect coverage)
- Casual laborers
- Household workers
- Farm and agricultural workers
- Independent contractors meeting IRS tests
How to Obtain Coverage
| Option | Description |
|---|---|
| Private Carriers | Purchase from licensed insurance companies |
| Self-Insurance | Large employers may qualify to self-insure |
| Indiana Assigned Risk Pool | For high-risk employers unable to obtain coverage |
Benefits Provided
Medical Benefits
- All necessary medical treatment
- No deductible or copay for employees
- Paid by employer/insurer
Disability Benefits
| Type | Description |
|---|---|
| Temporary Total (TTD) | Unable to work temporarily |
| Temporary Partial (TPD) | Reduced earnings while recovering |
| Permanent Partial (PPD) | Permanent impairment but can work |
| Permanent Total (PTD) | Unable to work permanently |
Death Benefits
- Funeral expenses
- Weekly benefits to dependents
- Based on deceased worker's average weekly wage
Exclusive Remedy Doctrine
Workers' compensation is the exclusive remedy for workplace injuries:
- Employees cannot sue employers for negligence
- In exchange, employees receive guaranteed benefits
- Employer protections lost if no coverage
Penalties for Non-Compliance
| Violation | Penalty |
|---|---|
| Willful failure to insure | Class A misdemeanor, up to 1 year imprisonment, up to $5,000 fine |
| Failure to report injury | Class C infraction, fines |
| Failure to post notice | Fines and regulatory action |
| Bad faith | Up to $20,000 fine |
Posting Requirements
Employers must post a notice that includes:
- Statement that employer is covered
- Insurance company name, address, and phone
- How to report workplace injuries
Statute of Limitations
Employees have two years from the date of injury to file a workers' compensation claim.
Exam Tip: Indiana requires workers' comp for employers with just ONE employee - lower than many states. Remember that failure to insure is a criminal offense with potential imprisonment.
How many employees must an Indiana employer have before workers' compensation is required?
What is the penalty for an Indiana employer who willfully fails to provide workers' compensation coverage?
What is the statute of limitations for filing a workers' compensation claim in Indiana?