Workers Compensation Requirements and Penalties in Indiana

Workers Compensation Requirements and Penalties in Indiana


IC-22-3-2-2 requires employers to carry workers compensation coverage, with some exceptions


All Indiana employers must provide Workers Compensation coverage to all employees subject to Indiana Code 22-3-2-2.


IC 22-3-2-2 Mandatory compliance; burden of proof; exemptions     Sec. 2. (a) Every employer and every employee, except as stated in IC 22-3-2 through IC 22-3-6, shall comply with the provisions of IC 22-3-2 through IC 22-3-6 respectively to pay and accept compensation for personal injury or death by accident arising out of and in the course of the employment, and shall be bound thereby.




Some Exceptions to this code include:

•       Railroad Employees engaged in train service

•       Farm Laborers

•       Employees of Indiana municipal corporations who are members of the fire department or police department and a firefighters’ pension fund or police officers’ pension fund.

•       Independent Contractors as defined by the guidelines of the Internal Revenue Service.


Employer’s Penalties for No Insurance


An employer who fails to carry insurance or self-insure its workers compensation liability commits a Class A infraction (IC 22-3-4-13 and IC 22-3-5-1).


The WC Board could order:

•       Fine up to $10,000

•       Compensation not to exceed double the compensation provided by this Act;

•       Medical expenses, and

•       Reasonable attorney fees

•       Employer to cease business in Indiana until proof of insurance shown


County Prosecutors


The Board has an administrative procedure to refer an employer to a county prosecutor, who does have authority over the lack of coverage matter. Then, it is up to the prosecutor to investigate and enforce the law. Such enforcement could vary widely from county to county.


Report an injury


A person who fails to report an injury commits a Class C infraction (IC 22-3-4-13). Yet we have never encountered this issue and don’t know any other firm that has.


An employer is required by law to report all injuries to its insurance company and any injury resulting in at least one day of missed work to the Board. Failure to report the injury can result in fines and could also result in a bad faith judgment against the employer, which could lead to a fine of up to $20,000.


Contact The Lockwood Legal Group, LLC


If you have been injured at work, it is crucial you contact a qualified attorney right away. We understand litigation is often daunting to those who are not attorneys. but rest assured, we will be here for you all throughout the process. No one fights harder for their clients then attorneys of The Lockwood Legal Group, LLC.


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