To establish Indiana’s top workers’ compensation insurance providers, we examined factors like customer satisfaction, affordability, financial stability and the efficiency of online quote applications. Our analysis indicates that The Hartford outshines its competitors.
Indiana requires all businesses with at least one employee to carry workers’ compensation insurance. While the law may exempt some employers from this coverage, purchasing a policy protects business owners from legal and financial liabilities. This coverage can help pay for medical treatment and lost wages if an employee suffers from work-related illnesses or injuries.
Best Workers’ Compensation Insurance in Indiana
Best Workers’ Compensation Insurance in Indiana
Earning a MoneyGeek score of 95 out of 100, The Hartford stands out as the best workers’ compensation insurance company for Indiana businesses.
The insurer’s average monthly rate of $119 is the third cheapest compared to the other insurers in our analysis. However, your monthly premium will vary based on factors like the size and nature of your business.
How was this MoneyGeek score calculated?
- Policies cost a monthly average of $119
- Receives the lowest number of complaints from customers among Indiana providers
- A+ rating from AM Best demonstrates strong financial stability
With over 200 years of customer service, The Hartford has a track record of delivering exceptional policyholder satisfaction. Its excellent service record is evident in the scant number of customer complaints it receives, according to the NAIC’s (National Association of Insurance Commissioners) ratings for the company.
The Hartford earned an A+ rating from AM Best, indicating its capability to meet its financial obligations after customers file their claims. However, the company’s policies are not the cheapest in the state, so business owners looking for a more affordable policy may opt for another provider. Its online quote application takes about 90 seconds, which is moderate compared to its competitors.
- Offers affordable workers’ compensation policies at an average monthly rate of $101
- Strong financial backing to make good on claims
- Poor customer service record
Thimble offers affordable rates and reliable financial stability, making it the second-best Indiana workers’ compensation insurance provider. Our analysis finds that you can depend on Thimble for competitive rates. The company provides policies at a monthly average of $101.
Customers can obtain a quote from the company’s website in slightly over a minute and a half, which is fair compared to other insurers. However, the company has a history of receiving many customer complaints, implying that customer concerns may not get addressed adequately.
- Ultrafast online quote application
- Cheapest average workers’ compensation policy at $97 a month
- Receives a high volume of customer complaints
- Record of financial instability
Pie received a MoneyGeek score of 92 out of 100, offering Indiana workers’ compensation insurance policies at an average monthly cost of $97. This rate makes it the most affordable insurer of any Indiana provider we evaluated.
Pie also offers the most straightforward online quote process, with customers obtaining a cost estimate in about 30 seconds. However, the company’s A- rating from AM Best indicates a possibility of failing to meet its financial obligations to its customers. The insurer also received the most customer complaints of any provider we reviewed.
- Offers average monthly premiums of $148
- Strong financial stability rating
- Excellent customer satisfaction ratings
A division of Berkshire Hathaway Insurance, biBERK ranks fourth in our selection of the best workers’ compensation insurance providers in Indiana, with policies costing a monthly average of $148. This insurer’s policies are the second-most expensive compared to other Indiana providers we reviewed.
biBERK has the highest possible rating of A++ from AM Best, indicating its reliable ability to pay out legitimate customer claims. The insurer also has a reputation for excellent customer service, evidenced by the few customer complaints it receives. Its online quote application is quick and convenient for business owners shopping for insurance.
- Average monthly premiums of $145
- Outstanding customer service
- Low financial stability ratings
Next offers various insurance policies for your business needs. This insurer receives few customer complaints, indicating its excellent customer service record. However, Indiana workers’ compensation insurance from Next costs a monthly average of $145, making it costly compared to its competitors.
It’s worth noting that the company also received relatively low financial stability ratings, meaning the company may not be the most reliable in settling policyholders’ claims. Consumers looking for a more established insurer may want to look elsewhere.
- Policies cost a monthly average of $163, the most expensive among providers MoneyGeek reviewed
- Strong financial backing
- Excellent customer satisfaction record
- Slow online quote application
Our research found that Nationwide ranks highly in customer satisfaction and financial stability. The insurer earned an A+ rating from AM Best, proving its ability to meet its obligations after customers file claims. The company also had fewer customer complaints than most insurers in our analysis.
If you are budget-conscious, however, Nationwide may not be the best bet for your business since it offers an expensive average monthly premium of $163. It also has the slowest online quote application, making it less convenient to compare insurance rates.
Cheapest Workers’ Compensation Insurance in Indiana
Small business owners in Indiana who prioritize cost may consider obtaining workers’ compensation insurance from Pie. The company offers the most affordable coverage at an average monthly rate of $97 for businesses with 20 employees and $1,250,000 in annual payroll expenses. Note that the premiums for your business will vary based on your annual payroll and your number of employees.
Pie is our top pick for the cheapest workers’ comp insurance in Indiana, with an average monthly cost of $97 or $1,154 annually. Additionally, the company offers the quickest online quote application compared to its competitors. You can obtain a cost estimate in about 30 seconds.
Although Pie is an excellent option for business owners on a budget, it may not be the most financially dependable company, evidenced by its A- rating from AM Best. The company also receives frequent customer complaints, demonstrating the trade-off between affordability and service quality.
We based our rankings for Indiana’s cheapest workers’ compensation coverage provider on average monthly premiums. However, the most affordable insurer for your business will depend on many factors, including your business size and industry. The following table allows you to compare monthly costs for a company with 20 employees across multiple insurers in Indiana.
Best Workers’ Compensation Insurance for Micro Businesses in Indiana
The Hartford offers Indiana’s best workers’ comp insurance for micro businesses, offering an average monthly premium of $54. We based this study on quotes obtained for a company with five employees and an annual payroll sum of $312,500.
Generally, companies with an employee count of less than 10 are micro businesses. Increasing the employee count of your business can cause your workers’ compensation premium to rise. However, the most significant influence on your costs arises from your payroll expenses.
The Hartford is our recommendation for Indiana micro businesses seeking workers’ compensation insurance. This company offers the second-lowest rates of any Indiana provider we reviewed while still offering outstanding customer service, as demonstrated by its scant customer complaint record.
The company features a financial stability rating of A+ from AM Best, indicating this insurer can reliably pay its claims. Its online quote process takes about 90 seconds, which is moderate compared to other insurers in this category.
Best Workers’ Compensation Insurance for Midsize Businesses in Indiana
Nationwide tops our list of Indiana’s best workers’ comp companies for midsize businesses, earning a MoneyGeek score of 95 out of 100. This provider offers average monthly rates of $418.
Insurance providers consider a company’s number of employees when determining monthly premiums, although payroll expenses play a more significant role. MoneyGeek calculated the average rates for midsize businesses in Indiana using quotes for a business with 100 employees and an annual payroll of $6,250,000.
Nationwide offers workers’ compensation insurance at a monthly average of $418 for midsized businesses in Indiana. The insurer provides an optimal balance between cost and financial stability.
Its online quote process is slower than any other reviewed insurer, but the company stands out with its excellent customer service record. Nationwide demonstrates solid financial backing, as indicated by its A+ rating from AM Best. This score means you can rely on this insurer to meet its financial obligations.
How Much Is Workers’ Compensation Insurance in Indiana?
For businesses with 20 employees, workers’ compensation insurance in Indiana costs about $129 per month, $39 lower than the national average monthly premium of $168.
MoneyGeek’s based quotes in this study on a sample policy with the following limits:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The total policy limit means the insurer will pay up to $1 million in total liability costs for all accidents within the policy duration. The $1 million per accident limit caps the coverage amount paid per every workplace incident, and the $1 million per employee limit restricts the amount paid to any involved employee. Business owners seeking more protection may consider getting commercial umbrella insurance that facilitates higher coverage limits.
The primary determinants of workers' comp insurance premiums are the company’s annual payroll expenses and employee headcount. The following table shows how average workers' compensation insurance rates vary for businesses with five, 20 and 100 employees.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Indiana
The cost of workers’ compensation insurance varies based on several dimensions of your business. State regulations, payroll costs, number of employees, claims history and employee class codes can influence your rates significantly.
The state requires insurers to charge a set rate for each $100 of payroll. Generally, businesses with high payroll amounts tend to pay higher premiums than those with lower annual payroll costs. In Indiana, businesses spend $0.86 per $100 of payroll, making it one of the cheapest states to obtain workers’ comp insurance.
Number of employees
How much you pay depends on the employee headcount. Businesses with more employees typically pay higher premiums due to the increased likelihood of employees falling sick or getting injured at work.
Employee class code
Each employee gets placed in a class code based on their type of work. This code forms the basis of rates calculated for every $100 of payroll. Industries with a high risk of accidents or injury, such as mining or construction industries, often pay more for workers' compensation coverage than those in consulting and other low-risk industries.
Businesses with a history of filing workers’ compensation claims are riskier to insure, paying more for coverage. Based on 2021 data from the U.S. Bureau of Labor Statistics (BLS), Indiana reported 65,400 incidents of nonfatal workplace injuries and illnesses in its private industry. Meanwhile, around 2.6 million nonfatal injuries were reported nationwide in the same year.
Do You Need Workers’ Compensation Insurance in Indiana?
Businesses in Indiana with at least one full-time or part-time employee are required to purchase workers’ compensation insurance. However, a few categories of workers are exempt from this coverage, including railroad workers, real estate employees and independent contractors.
Although workers’ comp insurance is not compulsory for every business, we suggest purchasing a policy to safeguard your company from liability claims. Your insurer will protect your business from any expenses and legal liabilities that may arise if an employee gets ill or injured while at work.
Indiana businesses that fail to provide the state-mandated workers’ compensation insurance to their employees commit a Class A crime and could be subject to the following penalties:
- A maximum fine of $10,000
- Compensation of not more than double the compensation provided by the Workers’ Compensation Act
- Medical expenses for any affected employees
- Payment of attorney fees
- Suspension of business licenses
These legal and financial punishments provide ample motivation for obtaining workers’ compensation insurance.
What Does Workers’ Compensation Insurance Cover in Indiana?
Indiana’s workers’ comp insurance safeguards the employer (the policyholder) from medical expenses and legal liabilities stemming from a work-related employee injury or illness. The policy covers medical, rehabilitation and income costs for employees injured on the job. The insurer provides these benefits according to the policy guidelines and offers benefits to an employee’s dependents if the employee dies due to a job-related injury.
In Indiana, real estate employees, railroad workers and independent contractors are exempt from workers’ compensation insurance.
Workers’ Comp Resources for Employees in Indiana
The Workers' Compensation Board of Indiana provides resources and a platform for workers and businesses to file claims, check compliance status, report workplace injuries and get answers to inquiries regarding the Indiana Workers’ Compensation system.
To file for workers’ comp benefits in Indiana, you must inform your employer of the injury or illness, and the employer will file the necessary injury report with the insurer. The insurer will then send a copy to the Workers’ Compensation Board to initiate investigations into the claim. Once approved, the employee will receive the benefits based on the policy guidelines. Employees can appeal denied claims with the help of an attorney.
Frequently Asked Questions About Workers’ Compensation Insurance in Indiana
The ideal workers’ compensation insurance coverage meets your business’s needs at affordable rates. MoneyGeek answered your questions about Indiana’s best workers’ compensation insurance.
About Melissa Wylie
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- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 29, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 29, 2023.