Workers comp in Indiana is priced mainly on your payroll and the kind of work your people do, and Indiana has long been one of the lower-cost states in the country. As a rough guide, a low-risk office might pay a few hundred dollars per employee a year, while a high-risk trade like roofing can pay several thousand for the same wages. Your exact price comes down to a handful of factors you can partly control.
Who this is for: Indiana owners budgeting for workers comp, comparing quotes, or trying to understand why their premium is what it is.
The short version
- Price is driven mostly by payroll and the kind of work, not by your headcount alone.
- Each type of work has a price tied to the category it falls into, called the class code.
- Your claims history adjusts the price up or down through a score called the experience modification rate.
- Indiana rates are among the lowest nationally, and base rates fell again for 2026.
- Right classification, safety, and a clean claims record are the main ways to pay less.
What drives your Indiana premium
A few things set the number. The biggest is the category your work falls into for pricing, known as the class code: an insurer assigns each kind of work a rate per 100 dollars of payroll, and a roofer's rate is many times an office worker's. The second is your total payroll in each category. The third is a score based on your past claims, called the experience modification rate, which nudges your price above or below the base once you are big enough to qualify for one. Indiana carriers build on advisory loss costs published by the state rating bureau and then apply their own multiplier, so the same business can get different quotes from different carriers.
| Business type | Illustrative annual workers comp |
|---|---|
| Office or professional services | 450 to 1,900 dollars |
| Retail store | 1,000 to 4,200 dollars |
| Restaurant or cafe | 2,200 to 9,000 dollars |
| Cleaning or janitorial | 2,600 to 9,500 dollars |
| Landscaper or small contractor | 3,000 to 12,000 dollars |
| Roofing or framing crew | Substantially higher; rated by the job |
These are illustrative ranges for small Indiana businesses, not quotes. Your real number depends on your payroll, your exact work, and your claims history.
Where Indiana prices are headed
Indiana has kept some of the lowest workers comp costs in the country, and the trend has been downward. The state approved a 6.1 percent cut in advisory loss costs, the base rates carriers build on, effective January 1, 2026, following a similar cut the year before. Loss costs are not your final price, because each carrier applies its own multiplier, but a falling base tends to pull quotes down across the market. That makes it worth shopping your renewal rather than letting it roll over.
How to pay less without cutting coverage
You have real levers here. First, get your classification right: putting a worker in a higher-rated category than their actual duties means you overpay for years, so we review your payroll split before you buy. Second, keep your claims record clean, because that score based on your past claims follows you and rewards a good safety history. Third, run basic safety and return-to-work practices, which lower both claims and that score over time. Fourth, shop the market, since carriers use different multipliers on the same state base rates.
A Muncie example
Illustrative, not a quote. A Muncie cleaning company with six part-time staff gets two very different quotes. The higher one lumps all payroll into a single higher-rated category; the lower one splits office and field duties correctly, so only the cleaning payroll carries the field rate. We help the owner document the split, place the policy with the carrier whose multiplier fits, and set up a simple safety routine to protect the claims-based score that drives next year's price. See our workers comp for cleaning and janitorial businesses page.
Real questions Indiana owners ask
How much does workers comp cost in Indiana?
It depends mostly on your payroll and the kind of work. A low-risk office might pay a few hundred dollars per employee a year, while a high-risk trade like roofing can pay several thousand for the same wages. Indiana rates are among the lowest nationally.
What makes my premium go up or down?
Three things drive it: the category your work falls into for pricing, your total payroll, and a score based on your past claims. Right classification and a clean claims record are the main ways to pay less.
Are Indiana workers comp rates going up in 2026?
No, they went down. The state approved a 6.1 percent cut in advisory loss costs, the base rates carriers build on, effective January 1, 2026, continuing a downward trend. Your final price still depends on your own details.
Why did two carriers quote me different prices?
Because carriers build on the same state base rates but apply their own multiplier, and they may classify your work slightly differently. That is why shopping the market can save real money on the same coverage.
The quote lists a class code for my business, what is it and why does it change my price?
It is the category your work falls into for pricing, and each one carries its own rate per 100 dollars of payroll. Put people in the wrong category and you can overpay for years, so getting it right matters.
My quote mentions an experience mod, what is that and can I lower it?
It is a score based on your past claims that raises or lowers your price once your business is large enough to qualify. A clean safety and claims record pulls it down and saves you money over time.
How can I lower my workers comp cost?
Classify your payroll correctly, keep your claims record clean, run basic safety and return-to-work practices, and shop the market. We review all of these before you buy and again at renewal.
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?
- What happens if I don't carry workers comp?
- 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)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- Indiana cleaning 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.