State insurance guide
Indiana Business Insurance Guide 2026
Indiana requires every employer covered by its Worker's Compensation Act to insure its liability with an authorized carrier or prove to the board that it can pay compensation directly. Auto liability minimums and paid leave rules follow, each with its official source.
Explore Indiana requirements
Open the state requirements checklistIndiana requires every employer covered by its Worker's Compensation Act to insure its liability with an authorized carrier or prove to the board that it can pay compensation directly, and the statute sets no minimum number of employees (Indiana Worker's Compensation Board: Compliance (quoting IC 22-3-5-1)). The minimum auto liability limits are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility). According to NCSL's table, there is no state paid family leave or disability insurance program to fund.
The sources were checked on October 3, 2026. For a ruling on your own situation, ask the agency linked in each section.
Shopping for business insurance in Indiana? Request coverage help
Workers' compensation
Who must carry it: Every covered employer; no minimum headcount (Indiana Worker's Compensation Board: Compliance (quoting IC 22-3-5-1)).
Exemptions and exclusions
The Act does not apply to casual laborers, farm or agricultural employees, household employees, certain part-time youth coaches for 501(c)(3) nonprofits, or certain railroad train-service employees, and an exempt employer may waive the exemption (IC 22-3-2) (Indiana Code Title 22 (2026)).
The agency to ask is the Indiana Worker's Compensation Board. For the coverage itself, see the workers' compensation guide; for a proposal's arithmetic, the workers' comp calculator.
Auto liability minimums
Indiana sets these minimum auto liability limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
- Start date: not stated in the source; confirmed in force on October 3, 2026
- Source: Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility
All motorists that operate a motor vehicle on Indiana roadways are required to maintain the state’s minimum amount of liability insurance coverage for the vehicle they operate.
Source: Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility
The Indiana Department of Insurance says each newly written auto liability policy must include uninsured and underinsured motorist coverage unless you reject it in writing.
Vehicles used commercially or for hire can face different or higher federal or state requirements; the commercial auto guide explains what to compare.
Paid leave and disability insurance
Indiana has no state paid family and medical leave insurance program and no state temporary disability insurance program, according to NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws; cross-checked on October 3, 2026 with the U.S. Department of Labor Women's Bureau).
Because legislatures can create programs, as Virginia did in 2026 (Code of Virginia § 60.2-801), check with the state agency that handles labor and workforce matters before relying on this for a future Indiana payroll year.
Other requirements to check
Licenses, leases and client contracts in Indiana can set their own general liability limits or certificate wording. The certificate of insurance checklist helps you track them, and the requirements-by-state guide compares states.
Where to verify
- Workers' compensation: Indiana Worker's Compensation Board
- Auto liability minimums: Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility
- Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau
To prepare, run the state requirements checklist with your employee count and vehicle use; for a PolicyBenchmark follow-up, request coverage help.
Frequently asked questions
Is there an employee minimum for workers' compensation in Indiana?
No. Indiana's law sets no minimum headcount (Indiana Worker's Compensation Board: Compliance (quoting IC 22-3-5-1)), so a business with one employee is generally covered unless an exemption listed above applies. The agency to ask is the Indiana Worker's Compensation Board.
Are Indiana's auto minimums enough for business vehicles?
Indiana's minimums are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (Indiana Bureau of Motor Vehicles, Proof of Financial Responsibility). They are the legal floor, not a measure of what a business needs. Commercial and for-hire vehicles can face different or higher federal or state requirements, and contracts can require more.
Does Indiana require employers to pay into a paid leave program?
Not according to NCSL's table, last updated November 7, 2025: Indiana has no state paid leave or temporary disability insurance program for private employers (NCSL). Confirm before planning a future payroll year.
About this article
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.