If you skip required workers compensation in Indiana, the state can charge you with a crime, add a daily penalty, ask a court to stop your business, and let an injured worker collect double the normal benefits. Indiana treats going without coverage as a serious violation, not a paperwork slip, and the costs stack up fast. For any employer with even one employee, the price of skipping coverage dwarfs the premium.
Who this is for: Indiana owners weighing the risk of going without coverage, or worried about a lapse, especially in higher-risk trades like roofing and construction.
The short version
- Failing to insure is charged as a Class A misdemeanor under the Indiana Worker's Compensation Act.
- If the Board asks for proof and you do not respond, it can add 100 dollars a day until you comply.
- If a worker is hurt while you are uninsured, the Board can award up to double the normal benefits, plus medical costs and attorney fees.
- A court can order you to temporarily stop doing business in Indiana until you insure.
- Without coverage you lose your legal shield, so the injured worker can sue you directly.
What Indiana can do to you
Indiana's penalties for going without required coverage come from several parts of the Worker's Compensation Act. They range from a daily fine to criminal charges and a court order shutting your operation down.
| Violation | What Indiana can do |
|---|---|
| Failing to carry required coverage | Charged as a Class A misdemeanor under the Act, which carries up to one year and a fine up to 5,000 dollars |
| Ignoring the Board's request for proof of coverage | A penalty of 100 dollars a day from the date of the request until you comply, waived if you show proof within 20 days of the notice |
| An injury while uninsured | The Board can award the worker up to double the normal benefits, plus medical costs and attorney fees |
| Continuing to operate uninsured | A court can order you to temporarily stop doing business in Indiana until you insure |
| Losing your legal shield | The injured worker can sue you directly instead of being limited to the comp system |
The daily penalty and the double benefits
Two of these deserve a closer look. The proof-of-coverage penalty is clean and specific: if the Board requests proof and you do not respond, it can charge 100 dollars a day starting from the date of the request until you comply, and it will waive the penalty if you provide proof within twenty days of the notice, so responding quickly matters. Separately, the double-benefit exposure is the one that hurts most after an injury: an employee hurt while you were uninsured can be awarded up to twice the compensation they would normally get, along with their medical expenses and attorney fees, and that comes straight out of your pocket. You may also see a bigger number quoted: the state's rating bureau describes this as a fine of up to 10,000 dollars, while the law itself calls it a misdemeanor. Either way the takeaway is the same, going without required coverage is treated as a crime, not a paperwork slip.
The lawsuit you no longer can stop
The quiet penalty is the loss of your legal shield. When you carry comp, an injured employee's claim is generally handled through the comp system instead of a lawsuit. Fail to carry required coverage and you lose that protection, so the worker can pursue the enhanced benefits before the Board or sue the business at law. Sole proprietors and partners are personally the employer, so that exposure reaches their personal assets. Construction and roofing are watched closely, and a job site without proof of coverage is a common trigger for enforcement.
A Gary roofing example
Illustrative, not a quote. A Gary roofing contractor with four crew members skips coverage for a season to save money. The Board requests proof of coverage and he does not respond, so the daily penalty starts adding up. That same month a crew member falls and is seriously hurt. Because the business was uninsured, the worker can be awarded up to double benefits plus medical costs, the contractor faces a misdemeanor charge and a possible order to stop work, and as a sole proprietor his personal assets are exposed. A season of premium would have cost a small fraction of that. See our workers comp for roofers page.
Real questions Indiana owners ask
What is the penalty for not having workers comp in Indiana?
Failing to insure is charged as a Class A misdemeanor under the Act, and if the Board requests proof and you do not respond it can add 100 dollars a day until you comply. An injury while uninsured can cost you double benefits.
Can I go to jail for not carrying workers comp in Indiana?
It is possible. The Act frames failure to insure as a Class A misdemeanor, which carries up to one year and a fine up to 5,000 dollars. In practice, most cases turn on penalties and the cost of an uninsured injury.
What is the 100 dollars a day penalty about?
If the Board requests proof of coverage and you do not respond, it can charge 100 dollars a day from the date of the request until you comply. The penalty is waived if you provide proof within twenty days of the notice.
What are double benefits?
If an employee is hurt while you were uninsured, the Board can award them up to twice the compensation they would normally receive, plus medical expenses and attorney fees. That extra amount comes out of your pocket.
Can Indiana shut my business down over this?
Yes. A court can order an uninsured employer to temporarily stop doing business in Indiana until it furnishes proof of insurance. That is meant to force compliance, and it can halt your revenue in the meantime.
Am I personally on the hook, or just the company?
It depends on your structure. Sole proprietors and partners are personally the employer, so their personal assets are exposed. A corporation is the employer for the penalty, though officers should still not treat the risk lightly.
Can an injured worker sue me if I have no coverage?
Yes. Carrying comp normally keeps injuries in the comp system instead of court. Without required coverage you lose that shield, so an injured worker can pursue enhanced benefits before the Board or sue the business.
Why Indiana owners choose Morrow
- We shop the right market for you. In Indiana you buy workers comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no carrier will take you the state's assigned risk plan is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Indiana guides
Every Indiana business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Indiana (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- Indiana roofing workers comp
This guide is general information, not legal advice. Indiana rules and penalty amounts can change, so verify current requirements with the Worker's Compensation Board of Indiana or a licensed advisor before you rely on them. Last updated: July 2026.