Workers Comp in Indiana is a no-fault system. Indiana workers comp insurance provides medical and disability benefits to employees injured or made ill during their employment. Employers benefit by covering potential losses with insurance and avoiding civil liability. Employees and their families gain by having guaranteed benefits in the event of a work-related illness, injury, or death.
Why Do You Need Workers Comp Coverage?
The laws of Indiana make it clear that every employer must have workers comp coverage. The exceptions include state and municipal workers (self- insured entities), railroad workers, certain federal employment, and casual labor. The penalties for uninsured employers are substantial.
Workers compensation guarantees important benefits for the well-being of employees and their families. Many occupations have high risk, and even low-risk occupations encounter unforeseen and terrible events. Worker’s compensation provides immediate medical and financial assistance.
The immediacy and reliability of employee benefits are vital to the well-being of workers and their families. It may do someone little good to pursue months or years to get an uncertain remedy when the needs are definite and immediate.
Buying Workers’ Compensation in Indiana
There are two ways to get workers comp insurance in Indiana; you can buy a policy or self-insure. The policy options include the commercial marketplace and the assigned risk pool.
Instructions for Buying
The best way to get low-cost insurance with full coverage and benefits is to shop in the private market. Using agents and brokers, you can find the best available prices and coverage options. Self-insurance requires presentation of a plan to the Indiana Government and approval. Applicants must demonstrate financial strength to manage liability risks both directly and through excess liability insurance.
Applicants must show an approved process for claims administration.
Where to Buy Insurance?
You can buy insurance from the Private market, get approval for a plan of Self-insurance, or qualify for coverage in the Assigned Risk Pool.
Private insurance providers
The best way for an Indiana employer to find workers comp insurance is through the open market. Private insurance companies licensed to sell Indian Workers compensation insurance offer the best opportunity for low prices and adequate protection.
Employers must demonstrate financial capacity to manage their liability risk and handle claims. They must submit proof of financial stability as well as current assets. The claims function must meet government standards for fairness and prompt handling.
Assigned Risk Pool
Employers that cannot find workers compensation insurance on the private market or in self-insurance can get insurance through the ICRB. This organization is the Indiana insurer of last resort. It operates an assigned risk pool. To be eligible, an employer must apply and get rejections from three private insurers. Once assigned a carrier will perform the arrangements for setting up insurance agreements and claims servicing.
How Much Does Worker’s Comp Insurance Cost?
The cost of an employer’s annual premium depends on many specific factors including the occupational classifications it employs, and its history of claims. On a statewide basis and across all occupational codes, the 2014 cost was $0.84 per $100 of earnings. Using data from the NCCI database, the Indiana Compensation Rating Bureau (ICRB) sets advisory rates for each employment classification. These standards form the basis, and insurers can modify them by underwriting, and assessing the employer’s claims history of injuries and illnesses.
What Is the Cost of Not Getting Worker’s Comp Coverage?
Uninsured employers face potential civil and criminal liability in Indiana. The Board enforces the worker compensation statutes. They can demand proof at any time, and companies must file proof of insurance every three years, or within ten days of the expiration of any policy in force.
- Civil penalties- upon receipt of a notice to show proof of coverage, an employer must prove insurance or pay a fine of up to $50 per day per employee.
- The State can seek a court order to cease and desist from doing business until in compliance and penalties have been paid.
- Criminal penalties- failure to insure is a crime in Indiana. It is a Class A Misdemeanor punishable by up to one -year incarceration and a fine up to $5,000
Places You Can Get Worker’s Comp or More Info
Private insurance companies, agents, and brokers are a great source of information. Agents and brokers must master the market and know the terms and limits of available coverages. Brokers may represent a wide range f sources while agents typically handle large portfolios from a single provider.
In the Indiana government, the Workers Compensation Board of Indiana administers the worker’s compensation laws and claims process.
Worker’s Compensation Board of Indiana
402 West Washington Street Room W-196
Indianapolis, Indiana 46204
The Indiana Compensation Rating Bureau (ICRB)- This public interest group is a statutory rating organization. It is a private non-profit, unincorporated association of all insurance companies licensed to write workers compensation insurance in Indiana. The ICRB binds employers that cannot find insurance or self-insurance.
Factors That Impact Coverage
Legal factors that one must consider include that workers’ compensation does not protect employers against certain acts such as deliberate acts that cause injury.
Liability under worker’s comp is for employees and it does not cover general premises or visitors.
Rates depend on many factors, and the past record of injuries and claims is important. Employers can affect rates by putting a workplace safety program into effect.
Independent contractors do not qualify as employees for workers’ compensation insurance. However, they must get state certification and keep it current. Independent contractors must cover their personal worker’s comp or opt out as business owners.
Workers compensation laws do not relieve the employer of keeping a safe and drug-free workplace. These and other obligations persist. Workers’ comp does not shield the employer against all liability; rather it has a narrow scope for incidents within the scope and course of regular employment.
Workers Compensation coverage is an important part of doing business in Indiana. The protections for employer and employee are vital. The employees get financial security against risks of injury or illness; the employer gains protection against costly civil lawsuits. The costs of no-insurance are steep. Uninsured employers face civil fines and penalties. The state can shut down their business, and an uninsured employer must get into compliance before resuming business operations.
- The Indiana Compensation Rating Bureau (ICRB)
- The Workers Compensation Board of Indiana