Indiana workers' compensation insurance

Some employees are exempt from Indiana's workers’ compensation system and are also ineligible to elect optional workers’ compensation insurance coverage. These include:

• Railroad employees covered under the Federal Employees Liability Act
• Employees engaged in interstate or foreign commerce who have access to federal alternatives to state-based workers’ compensation (seamen, longshoremen, etc.)
• Real estate employees (i.e., real estate agents who work as independent contractors for real estate brokers)
• Independent contractors (based on a combination of IRS and state guidelines)
• Athletes on scholarship
• Prison inmates
• Volunteers
• Coaches for youth sports teams

Some people aren’t required to have workers’ compensation coverage, but business owners can elect to include them under their insurance policy. This option applies to:

• Local police officers and firefighters under some conditions
• Reserve police officers
• Volunteers working for hazardous materials response teams
• Executive officers of public or nonprofit corporations
• Owner-operators who provide their vehicles and driver services to a trucking company that transports freight
• Members and managers of limited liability corporations who actively work in the business
• Individuals entered into a township, municipality, or county roster of volunteers
• Volunteers who work at state-owned or operated psychiatric facilities
• Other employees such as casual laborers, household workers, and farm or agricultural workers

Here are several examples of how workers' compensation insurance coverage helps pay expenses for injured workers:

• A wholesale stocker develops a back injury from many years of lifting and moving heavy stock onto pallets and trucks. Workers' comp covers their attending physician fees and pain medication, as well as provides disability benefits to replace part of the wages they miss while they're recovering.
• A barista is burned while preparing a hot beverage for a customer. Workers' comp covers their medical provider appointment and pain medication, as well as a reimbursement for any out-of-pocket expenses relating to the claim.
• A retail store employee slips on a wet floor and hits their head. In this instance, workers' compensation would cover their emergency room trip, head MRI, and any following medical expenses during their recovery.
• A nurse trips on a cord in their patient's room and breaks their wrist. Workers' comp covers the cost of the ER visit, surgery, medications, and then two months of physical therapy to help them recover.

Business owners in Indiana have four choices when it comes to buying a workers' compensation policy.

• Private insurance companies. You could contact each workers' compensation insurance carrier independently to compare their products and rates, but that's where agents and brokers like Insureon come in. As the nation's leading digital insurance agency, Insureon partners with 30+ top-rated insurance carriers to deliver the right coverage for your business. Fill out an easy online application to get started.
• The Indiana State Insurance Fund. You can get insured through the state fund, which accepts some employers who might not be accepted by private insurers.
• Self-insurance. Employers who are approved by the Indiana Compensation Rating Bureau (ICRB) and meet certain requirements may be able to self-insure for workers' comp.
• The assigned risk pool. Employers who are ineligible for the above can get insurance through the ICRB assigned risk pool.

Here's a breakdown of this equation:

• The classification rate reflects your employees' risk. Each worker has a classification code for the type of work they do. Insurers look up those codes in a database to find the associated rate, which is lower for office workers and higher for carpenters, tree trimmers, and others with a higher rate of injuries. Unlike other states that rely on the National Council on Compensation Insurance (NCCI) database, Indiana utilizes the Indiana Compensation Rating Bureau.
• The experience modification rate (EMR) reflects your business's risk. The average experience modification rate is 1.0, which means a business is similar in risk to others in its profession. Higher EMRs reflect higher risks, such as a history of claims. The EMR only comes into play for annual workers' comp premiums of at least $5,000, so it's not a factor for many small business owners.
• The insurer multiplies these numbers with your payroll divided by 100 to come up with your workers' compensation rate. Workers' compensation audits are typically done each year to ensure your business pays the right premium for this coverage.

When an Indiana employee dies after sustaining a work-related injury or illness, their family can collect death benefits. Dependents are eligible for 500 weeks of lost wages at 67% of the deceased’s average weekly wage. Any medical benefits and up to $7,500 for burial expenses are also covered.

Dependents in Indiana fall into two eligibility categories:

Presumptive dependents receive death benefits divided equally among them. They include:

• Spouse (as long as they do not re-marry)
• Unmarried children under the age of 21 who are living with the employee
• Unmarried children under the age of 21 who are not living with the employee but for whom the employee has a legal support obligation
• Children over 21 who have never been married and are mentally or physically handicapped, or are keeping house for the employee and not otherwise gainfully employed

Dependents-in-fact are entitled to benefits if there are no presumptive dependents at the time of the employee's death. They include individuals related by blood or marriage who are dependent, either totally or partially, upon the deceased employee.