Workers Comp Rates in Indiana (IN)
The average workers' compensation rate in Indiana is $0.80 per $100 of payroll , effective as of 2025-01-01. This is $0.39 (32.8%) below the national average of $1.19 per $100. Indiana has a competitive insurance market where employers can purchase workers' comp from private insurers. Indiana is one of the cheapest states for workers' compensation insurance. All employers must carry coverage, but the competitive market and lower benefit levels keep rates well below average.
Workers Comp Requirements in Indiana
Workers Comp Rates by City in Indiana
The table below shows average workers' compensation rates for 5 cities in Indiana, sorted by rate from highest to lowest. Rates range from $0.74/$100 in Bloomington to $0.82/$100 in Indianapolis. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Indianapolis | $0.82 | $2,050 | +$0.02 | -$0.37 | State capital |
| Evansville | $0.80 | $2,000 | Same | -$0.39 | -- |
| Fort Wayne | $0.78 | $1,950 | -$0.02 | -$0.41 | -- |
| South Bend | $0.76 | $1,900 | -$0.04 | -$0.43 | -- |
| Bloomington | $0.74 | $1,850 | -$0.06 | -$0.45 | University town |
How Indiana Compares to Other States
Below is a comparison of Indiana with five states that have similar workers' compensation rates. This comparison helps illustrate where Indiana stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Indiana (IN) | $0.80 | Competitive | 1+ | 7 days | $2,000 |
| Utah (UT) | $0.85 | Competitive | 1+ | 3 days | $2,125 |
| Arkansas (AR) | $0.75 | Competitive | 3+ | 7 days | $1,875 |
| Texas (TX) | $0.90 | Competitive | 1+ | 7 days | $2,250 |
| Colorado (CO) | $0.92 | Competitive | 1+ | 3 days | $2,300 |
| Virginia (VA) | $0.68 | Competitive | 2+ | 7 days | $1,700 |
Workers Comp Cost Examples for Indiana
The following table shows estimated annual workers' compensation costs for various payroll sizes in Indiana using the state average rate of $0.80 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $400 | $33 |
| $100,000 | $800 | $67 |
| $250,000 | $2,000 | $167 |
| $500,000 | $4,000 | $333 |
| $1,000,000 | $8,000 | $667 |
| $2,500,000 | $20,000 | $1,667 |
Frequently Asked Questions About Workers Comp in Indiana
How much does workers comp cost in Indiana?
The average workers' compensation rate in Indiana is $0.80 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,000 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Indiana?
Yes. Indiana requires workers' compensation for employers with 1 or more employees. The following are exempt: Agricultural workers, domestic workers, casual employees, certain real estate agents. Penalties for noncompliance include: Class A misdemeanor, up to $50 fine per day, personal liability.
Where can I buy workers comp in Indiana?
Indiana has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Indiana?
The waiting period in Indiana is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Indiana is $862.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Indiana, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.