Indiana contractor insurance requirements

Workers' comp in Indiana

Indiana businesses with employees must carry workers' comp. The number of employees doesn't matter. Independent contractors aren't covered by the businesses that hire them. Indiana's Department of Revenue issues a workers' comp exemption clearance certificate to independent contractors who aren't required to carry coverage.

The agency in charge is the Workers' Compensation Board of Indiana. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Indiana has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

Indemnity and additional insured clauses

Indiana Code § 26-2-5-1 voids construction clauses that make a contractor indemnify another party for that party's sole negligence. Highway contracts are treated differently (§ 26-2-5-2).

What to check on a contractor COI for a Indiana project

1. Workers' comp. Nearly every contractor with employees needs it in Indiana. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Indiana is listed on the workers' comp policy.
2. General liability. Indiana doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.