# Indiana contractor insurance requirements

> What Indiana law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/indiana/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Sole negligence

## 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.

Agency: [Workers' Compensation Board of Indiana](https://www.in.gov/wcb/employers/)

## 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.

## Common questions

### Do contractors need 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.

### Does Indiana require contractors to carry general liability 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.

### Can a Indiana construction contract make a contractor cover another party's negligence?

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).

## Sources

1. [Indiana workers' comp requirements](https://onpay.com/insights/workers-comp-requirements-by-state/indiana/), OnPay, Dec 2025
2. [Workers' compensation clearance for contractors](https://in.gov/dor/i-am-a/business-corp/contractors/workers-comp), Indiana Department of Revenue
3. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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Forsured: construction insurance compliance software. https://forsured.ai · hello@forsured.ai