How is an Indiana workers' comp premium calculated?

The core formula is (annual payroll ÷ 100) × the class-code base rate, which gives the manual premium. That is multiplied by your experience modifier and adjusted by any schedule credit or debit. Indiana uses NCCI class codes and loss costs, and each carrier applies a loss cost multiplier to set the final rate per $100.

What is an experience modifier (EMR)?

The experience modification rate compares your past claims to other employers in the same class. A new or average employer has an EMR of 1.00. A strong safety record can drop it below 1.00 to lower your premium, while frequent claims push it above 1.00 and raise the cost. Indiana employers earn an EMR after enough payroll and claims history accumulate.

Does Indiana have a state workers' comp fund?

No. Indiana is not a monopolistic state-fund state, so employers buy coverage from private insurance carriers or qualify for self-insurance. The Indiana Workers' Compensation Board administers the system and resolves disputes, but it does not sell insurance. This gives Indiana employers a competitive market of carriers.

Which Indiana employers must carry workers' comp?

Under Indiana law, virtually all employers with one or more employees must carry workers' compensation insurance, with narrow exceptions such as certain sole proprietors, partners, and specific agricultural or domestic workers. Failing to carry required coverage exposes an employer to penalties and personal liability for injuries.

Is this premium estimate exact?

No, it is a planning estimate. Actual premiums depend on your carrier's loss cost multiplier, payroll audits, multiple class codes, the expense constant, taxes, and assessments. Use this tool to compare scenarios, then get a firm quote from a licensed Indiana insurance agent.

Indiana Workers' Compensation Premium Calculator

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This calculator estimates an Indiana employer’s annual workers’ compensation premium from three inputs: your payroll, the class-code rate for the work performed, and your experience modifier. It uses the same structure carriers use, so you can sanity-check a quote or model how a safer year (lower EMR) would cut your cost.

How it works

Workers’ comp is priced per $100 of payroll:

Manual premium = (Annual payroll ÷ 100) × Class base rate

Modified premium = Manual premium × Experience modifier (EMR)

Net premium = Modified premium × (1 − schedule credit%)

The class base rate reflects the injury risk of the job — clerical work is a fraction of a dollar per $100, while roofing can exceed $15 per $100. Indiana uses NCCI class codes and loss costs; your carrier multiplies the loss cost by its own loss cost multiplier to produce the rate you enter here.

Indiana workers’ comp details

Indiana is a private-market state — there is no monopolistic state fund, so you buy coverage from competing carriers. The Indiana Workers’ Compensation Board oversees the system. Nearly every employer with one or more employees must carry coverage, making this a near-universal cost of doing business in the state.

Worked example

A small retail shop with $250,000 of payroll in class 8017 (retail, ~$1.60/$100) and an average EMR of 1.00, no schedule credit:

Manual premium = ($250,000 ÷ 100) × $1.60 = $4,000
Modified premium = $4,000 × 1.00 = $4,000
Estimated annual premium ≈ $4,000 ≈ $333/month

Note: This is an estimate, not a quote. Real premiums vary by carrier loss cost multiplier, payroll audits, multiple class codes, and the expense constant. Confirm with a licensed agent or the Indiana Workers’ Compensation Board.