NEXT is Indiana’s best workers' compensation insurance provider, scoring 98 out of 100. The company offers a great mix of reliable customer service, very low workers' comp rates and a large coverage selection. Thimble and The Hartford are strong runners-up that you should also consider.
Cheapest Workers' Comp Insurance in Indiana
Updated: June 3, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, The Hartford and Thimble are the best cheap workers' comp insurance providers in Indiana.
Workers' compensation coverage costs an average of $672 per year or $59 per month for most small businesses in Indiana.
Workers' comp insurance is required in Indiana for all companies with employees to cover expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Indiana
| Next | 98 | $112 |
| The Hartford | 90 | $217 |
| Thimble | 89 | $181 |
| Nationwide | 88 | $213 |
| Pie | 87 | $186 |
| biBERK | 86 | $275 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Very affordable rates
Great customer service feedback overall
Instant quotes available online
cons
Not the most affordable option in Indiana for larger small businesses
COMPANY HIGHLIGHTS
NEXT has earned a 4.7 out of 5 rating from customers, insures over 600,000 clients, and provides coverage for 1,300 business types. You can instantly access your certificate of insurance and get round-the-clock support via chat. Compared to the next cheapest provider, NEXT saves you $69 per month.
How Much Is Workers' Comp Insurance in Indiana?
Depending on the size of your business in Indiana, workers' comp rates range from $672 to $5,655 per year. However, this only represents software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually, and your claims history.
| Larger small businesses | $489 | $5,655 |
| Businesses with five or less employees | $59 | $672 |
| Medium-size small businesses | $135 | $1,566 |
Factors That Impact Workers’ Compensation Costs in Indiana
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including the following: business type, location and number of employees.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with larger workforces face statistically higher workplace injury risks, prompting insurers to charge higher premiums based on increased exposure and claims probability.
Employee class code
Class codes categorize employee job functions and establish premium rates per $100 of payroll. Due to varying injury exposure levels, higher-risk industries like construction, mining and manufacturing pay significantly more than lower-risk professions such as consulting, accounting and software development.
Previous claims
A history of multiple workers' compensation claims signals higher risk to insurers, who will increase your premiums based on your past loss experience compared to similar businesses. Insurance companies typically review three years of claims data and use this history to calculate experience modification factors that can significantly raise your rates if you've had frequent or costly workplace injuries.
Indiana Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Indiana
Below are the best steps to take to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help make your decision.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes: by using online comparison sites or by speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Indiana?
Indiana requires workers' comp insurance for virtually every business with employees, regardless of company size, starting from day one. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN INDIANA
Employers in Indiana who don't follow the rules for workers' comp insurance face significant penalties:
- Criminal charges: Willful failure to obtain coverage is a Class A infraction and misdemeanor, which can be punished by up to one year in prison and fines up to $5,000.
- Bad faith judgments: Employers can face bad faith judgments for failing to report injuries, resulting in fines up to $20,000.
- Reporting violations: Failure to report workplace injuries constitutes a Class C infraction with associated fines.
- Legal enforcement: The Workers' Compensation Board can seek court injunctions to stop violations of the workers' compensation law.
What Does Workers’ Compensation Insurance Cover in Indiana?
Workers' compensation insurance covers your employees when they get hurt or sick on the job. In Indiana, it pays for medical bills, disability payments, and 66% of their weekly wages while they recover. This not only safeguards employees but also defends the business against potential legal claims associated with workplace injuries or illnesses.
Best Workers' Compensation Insurance Indiana: Bottom Line
The top three best and affordable workers' comp insurance providers in Indiana are NEXT, The Hartford and Thimble. While these companies are our recommendations, compare rates yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Indiana: FAQ
Below are answers to frequently asked questions about Indiana workers' comp insurance from our MoneyGeek experts.
Which company has the best workers’ compensation insurance in Indiana?
NEXT provides the best workers’ compensation insurance in Indiana. It surpasses its competition due to its competitive pricing (around $112 per month) and low complaint index. However, selecting the best insurance for your needs depends on factors such as your industry, workforce size and state requirements.
Does Indiana require businesses to have workers’ compensation insurance?
Yes, Indiana mandates that businesses provide workers' compensation insurance, with specific exemptions for certain individuals.
How much does workers’ compensation insurance cost in Indiana?
In Indiana, a medium-sized small business with around 20 employees can expect to spend about $135 per month on workers' compensation insurance.
How We Rated Workers' Comp Insurance Companies in Indiana
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 3, 2025.