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Indiana workers' comp for new trucking companies: what the law says

Helm PartnersUpdated Oct 25, 2026Sources checked Oct 25, 2026

Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed. We are not licensed in any state yet, including Indiana, and do not quote, sell or place insurance there. This guide is general information, not advice on any policy.

Short answer

Indiana law says each covered employer must insure its worker's compensation liability with a company authorized in Indiana, or prove to the Worker's Compensation Board it can pay claims directly. Owners of a sole proprietorship, partners and LLC members are covered only if they elect it, and the law says an owner-operator under a written 49 CFR 376 contract is not the carrier's employee (IC 22-3-6-1(b)(8)).

In this guide
  • When coverage is required
  • Owners of the business
  • Owner-operators and carriers
  • After an injury
  • A checklist for a new carrier
  • FAQ

Many new Indiana carriers start with one owner and one truck, then hire. Indiana's Worker's Compensation Act decides when coverage is required and who counts as an employee. Here is what the law and the Worker's Compensation Board say.

When coverage is required

  • Employers: under IC 22-3-5-1, quoted on the board's compliance page, every employer covered by the Act must insure its liability with a company authorized to write worker's compensation in Indiana, or show the board it can pay claims directly. Self-insurance applications carry a $500 fee.
  • Employees: anyone in the service of another under a contract of hire, except work that is both casual and outside the usual course of the business (IC 22-3-6-1).
  • Proof on request: the board can ask for current proof of coverage. If you do not provide it by the 10th day, it may assess $100 per day, waived if you comply by the 20th day after its notice (IC 22-3-5-2.5).

Owners of the business

  • Sole proprietors, partners, and LLC members or managers are not employees unless they elect to be, by written notice to their insurance carrier and the board.
  • Corporate officers are employees, but an officer may elect not to be by written notice to the carrier and the board.
  • Certificate of exemption. A sole proprietor or partner working as an independent contractor who does not elect coverage may get a certificate of exemption under IC 22-3-2-14.5. You get clearance from the Department of Revenue, then file with the board. The fee is $20 ($15 to the board, $5 to DOR), and the certificate takes effect at midnight seven business days after the board stamps it. Board: independent contractors

Owner-operators and carriers

  • An owner-operator who provides a truck and driver to a motor carrier under a written contract subject to 49 CFR 376 (or the matching Indiana rules) is not the carrier's employee for worker's comp (IC 22-3-6-1(b)(8)).
  • The owner-operator may elect to be covered, with their drivers, under the carrier's policy or self-insurance by paying the premiums the carrier asks. That election does not end independent contractor status for other purposes.
  • The board's independent contractor page also cites IC 22-3-6-1(b)(7): a person who is an independent contractor under IRS guidelines is not an employee under the Act.
  • Drive-away drivers, where the vehicle being driven is the commodity delivered, are independent contractors when their agreement says so.
  • Hiring someone not covered by the Act? IC 22-3-2-14.5 says you must get a copy of their stamped certificate of exemption, and your insurer must accept it like a certificate of insurance.

After an injury

Employers report an injury that causes death or needs medical care beyond first aid within 7 days of knowing about it, to their insurance carrier, or to the board if self-insured. The board lists a $50 civil penalty for a first failure to file the injury record (IC 22-3-4-13 and 22-3-4-15).

A checklist for a new carrier

  1. Decide whether each owner will elect coverage, and send the written notices.
  2. Have worker's comp in place when your first employee starts.
  3. Keep a signed 49 CFR 376 lease for every owner-operator.
  4. Keep stamped exemption certificates from contractors you hire.
  5. Use the board's online tools to confirm an employer's coverage or request a Certificate of Compliance.

More Indiana guides: Indiana filing checklist, Indiana intrastate requirements and Indiana owner-operators: IRP and IFTA.

FAQ

Does an Indiana owner who drives alone need workers' comp?

Indiana treats sole proprietors, partners and LLC members as employees only if they elect it by written notice to their insurance carrier and the board. Corporate officers are employees unless they elect out. If you have employees, coverage rules still apply to them. For your situation, check with the Worker's Compensation Board or an attorney.

Is a leased owner-operator the carrier's employee in Indiana?

No, if the owner-operator provides the truck and driver under a written contract subject to 49 CFR 376 or the matching Indiana rules (IC 22-3-6-1(b)(8)). The owner-operator may elect coverage under the carrier's policy by paying the premiums the carrier asks.

What is an Indiana certificate of exemption?

A filing under IC 22-3-2-14.5 for independent contractors who do not elect coverage. You get clearance from the Department of Revenue, then file with the board. The fee is $20, and it takes effect at midnight seven business days after the board stamps it.

Can an Indiana employer self-insure worker's comp?

Yes, with board approval. The employer must show it can pay claims directly, the board may require security or a bond, and the initial application fee is $500.

What if the board asks for proof of coverage?

Answer by the 10th day. After that the board may assess $100 per day (IC 22-3-5-2.5). It waives the penalty if you show proof by the 20th day after its notice.

How fast must an injury be reported in Indiana?

Within 7 days of knowing about an injury that causes death or needs medical care beyond first aid. The employer reports to its insurance carrier, or to the board if self-insured.

Helm Partners is a trucking-only insurance agency being formed in Michigan. Our Michigan license is pending. We do not quote or sell insurance until licensed. We are not licensed in any state yet, including Indiana, and do not quote, sell or place insurance there. This guide is general information, not advice on any policy. For your situation, check with the Worker's Compensation Board or an attorney.

Sources