If your Indiana partnership has any employees who are not partners, yes, it must carry workers compensation, because Indiana requires coverage once you have employees. The partners themselves are a different story: Indiana leaves a working partner off the policy by default, and a partner who wants their own injuries covered has to opt in by giving written notice. So a partnership made up only of partners, with no other staff, generally has no mandatory coverage until it hires someone.
Who this is for: Indiana general partnerships and multi-owner firms, including professional practices, family partnerships, and partnerships about to add their first non-partner employee.
The short version
- A partnership with any non-partner employee must carry workers comp from the first hire.
- Working partners are left off the policy by default in Indiana, so they are not automatically covered.
- A partner who wants their own injuries covered opts in by serving written notice on the insurer and the Board.
- A partnership of only partners, with no other staff, generally has no mandatory coverage yet.
- This is the opposite of a corporation, where officers are covered unless they opt out.
How Indiana treats partners
Indiana does not automatically put partners on the workers comp policy. A partner who is actually engaged in the partnership business is excluded by default and is brought in only by electing coverage, which means serving written notice on the partnership's insurance carrier and the Worker's Compensation Board. Until that election is received, a partner has no comp coverage for their own on-the-job injuries. That matches how the state treats sole proprietors and LLC members, and it is the reverse of a for-profit corporation, where officers are covered unless they opt out. Your staff is the constant: hire even one non-partner employee and that person must be covered from day one.
What applies to your partnership
| Your setup | Is comp required? | What to know |
|---|---|---|
| Partners only, no other staff | Not mandatory on the partners | Each partner is off by default and may opt in; a policy still helps for contracts |
| Partnership with non-partner employees | Yes | Employees covered from day one; partners stay off unless they opt in |
| A partner who wants coverage | Optional for that partner | Serve written notice on the carrier and the Board to elect coverage |
Opting in, partner by partner
Because Indiana partners start off the policy, each partner decides individually whether to opt in. A partner who wants comp to pay for their own on-the-job injuries elects coverage by written notice, and their pay is then counted in the premium. A partner who would rather rely on personal coverage simply stays off. Many partnerships that hire staff cover the employees and then choose partner by partner whether the owners opt in. Keep in mind that partners are personally the business, so if the partnership skips required coverage for its employees, the partners can be personally exposed to the penalties and to an injured worker's claim.
A Bloomington example
Illustrative, not a quote. A Bloomington accounting partnership has three partners and two bookkeepers on payroll. Because the two bookkeepers are non-partner employees, Indiana requires a policy covering them from day one. The three partners mostly do desk work and decide their personal injury risk is low, so they stay off the policy rather than opting in, while keeping the staff fully covered. If one partner later wants coverage, they can elect it by written notice at any time. See our workers comp for accountants and bookkeepers page.
Real questions Indiana owners ask
Does our Indiana partnership need workers comp?
If you have any non-partner employees, yes, from the first one. A partnership made up only of partners is not required to cover them, because Indiana leaves working partners off the policy by default.
Are we covered as partners in Indiana?
Not by default. Indiana leaves a working partner off the policy unless you opt in by serving written notice on the partnership's carrier and the Board. Until then you have no comp for your own injuries.
How does a partner get covered?
By electing coverage. The partner serves written notice on the insurance carrier and the Worker's Compensation Board, and once that is received their pay is counted in the premium and their injuries are covered.
What changes when we hire our first employee?
Coverage becomes mandatory. From that employee's first day the partnership must carry a policy covering them, whether they are full time, part time, or seasonal, even if the partners themselves stay off.
Is a partnership treated like a corporation for this?
No, the opposite. Partners are off the policy by default and opt in, while a corporation's officers are on by default and opt out. Confirm your business type before deciding who is covered.
Can each partner choose separately whether to be covered?
Yes. Coverage for partners is elected individually, so one partner can opt in while another stays off. The employees, however, must always be covered once you have any.
Are partners personally on the hook if we skip coverage?
They can be. Partners are personally the business, so if the partnership fails to carry required coverage for its employees, the partners can face the penalties and an injured worker's claim personally.
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 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?
- What happens if I don't carry workers comp?
- 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Indiana accountant 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.