What Should I Do If My Employer Doesn’t Have Workers’ Compensation Insurance?
When your employer doesn’t have workers’ compensation insurance in Indiana, you still have legal options to pursue medical coverage and wage replacement after a workplace injury. Indiana law requires most employers to carry workers’ comp coverage, and those who fail to comply face serious penalties and liability.
Indiana provides specific protections for workers injured by uninsured employers, including potential access to enhanced benefits and alternative legal remedies. Consulting an experienced Indianapolis workers compensation lawyer can help you navigate these options, whether filing a claim through Indiana’s Second Injury Fund or pursuing compensation through a civil suit against your employer.
What to Know if Your Employer Doesn’t Have Workers’ Comp
- Indiana law requires most employers to carry workers’ compensation insurance, with violations classified as Class A misdemeanors carrying fines up to $5,000 per violation
- Workers injured by uninsured employers may file claims through the Workers’ Compensation Board’s Second Injury Fund or civil lawsuits
- You have two years from your injury date to file an Application for Adjustment of Claim (Form SF 29109) with the Workers’ Compensation Board of Indiana
- Uninsured employers face both criminal penalties and civil liability, giving injured workers additional legal options beyond standard workers’ comp benefits
- Independent contractors are not eligible for workers’ compensation, but many eligible workers are misclassified as independent contractors
Is Workers’ Comp Insurance Required in Indiana for My Employer?
Indiana Code 22-3-2-5 mandates that employers with one or more employees carry workers’ compensation insurance coverage. The requirement applies broadly across industries and covers full-time workers, part-time employees, and seasonal staff. Most businesses operating in Indiana must comply with this insurance mandate to protect workers and maintain legal operating status.
However, several categories of workers receive exemptions from mandatory coverage requirements. Agricultural workers, domestic employees in private homes, real estate agents working on commission, and certain executive officers of corporations may not qualify for standard workers’ compensation protections. Independent contractors also fall outside coverage requirements, though worker misclassification remains a common issue requiring legal review.
The classification between employee and independent contractor significantly affects coverage requirements. Many employers incorrectly classify workers as independent contractors. If your employer claims you’re an independent contractor but controls your work schedule, provides tools and equipment, or directs how you perform job tasks, you may qualify as an employee entitled to workers’ compensation protections.
What Are My Options If I’m Injured and My Employer Is Uninsured in Indiana?
Indiana provides multiple legal pathways for workers injured by uninsured employers. Your primary option involves filing a claim through the Workers’ Compensation Board’s Second Injury Fund, which provides benefits similar to standard workers’ compensation coverage. This fund acts as a safety net for workers whose employers failed to maintain required insurance.
Beyond workers’ compensation remedies, injured workers may pursue civil litigation against uninsured employers. Unlike standard workers’ comp cases that limit recovery options, civil lawsuits against uninsured employers allow unlimited damage claims, including full medical expenses without coverage limitations, complete wage loss recovery without benefit caps, pain and suffering compensation typically excluded from workers’ comp, and punitive damages for employer negligence or willful violations.
Moreover, if an employer fails to carry mandatory workers’ compensation insurance and an employee is injured, the Board may order the employer to pay double the normal workers’ comp benefits as a statutory penalty for noncompliance. In addition to increased compensation, attorneys’ fees may also be recoverable in these cases. Attorney fee recovery may also be possible in cases involving uninsured employers.
Does the Second Injury Fund Apply to My Situation?
The Second Injury Fund serves as Indiana’s safety net for workers injured by uninsured employers or in other special circumstances where standard workers’ compensation coverage is unavailable. This fund operates through the Workers’ Compensation Board of Indiana and provides benefits comparable to standard workers’ compensation claims when employers fail to maintain required insurance coverage.
Fund eligibility extends beyond uninsured employer situations to cover workers injured by employers who become insolvent after injuries occur and certain occupational disease claims. Second Injury Fund benefits mirror standard workers’ compensation coverage, including medical treatment, temporary disability payments, and permanent impairment awards using the same benefit calculation methods and medical treatment guidelines.
Processing times for Second Injury Fund claims may extend longer than standard workers’ compensation cases due to additional verification requirements. The Board must confirm employer coverage violations and determine fund liability before approving benefits. Priority processing applies to emergency medical situations and severe injury cases requiring immediate intervention.
How Do I File an Application for Adjustment of Claim, and What’s the Deadline?
The Application for Adjustment of Claim (Form SF 29109) serves as your formal notice to the Workers’ Compensation Board about your workplace injury and uninsured employer situation. This document initiates the claims process and establishes your legal right to benefits under the Second Injury Fund program. Indiana law provides a two-year deadline for filing workers’ compensation claims, including uninsured employer cases.
The SF 29109 form requires specific information about your injury, employment, and employer’s insurance status. Key details you’ll need to provide include:
- Complete employer identification, including business name, address, phone number, and owner information
- Detailed description of your injury circumstances, including exact date, time, location, and how the injury occurred
- Medical treatment records from all healthcare providers who treated your workplace injury
- Documentation proving your employer’s lack of workers’ compensation coverage, such as insurance verification requests or coverage denial letters
- Witness statements from coworkers or supervisors who observed your injury or can verify employment details
Gathering comprehensive documentation strengthens your claim and speeds the Board’s review process. Filing your application promptly protects important legal rights while evidence remains fresh and accessible.
Do Independent Contractors Qualify for Indiana Workers’ Comp?
True independent contractors generally do not qualify for workers’ compensation coverage under Indiana law, as they operate as separate business entities rather than employees. However, worker misclassification creates frequent disputes about coverage eligibility when employers incorrectly label employees as independent contractors.
Indiana courts examine multiple factors when determining worker classification status, such as:
- Control over work performance – whether the employer dictates specific work methods, schedules, and quality standards
- Economic dependence – regular wage payments, tax withholding, and exclusive work relationships versus multiple client arrangements
- Business operations – whether the worker owns tools and equipment, bears financial risk, or operates as a separate business entity
- Integration into business – how essential the worker’s services are to the employer’s core business operations
- Skill and independence – whether the worker provides specialized skills requiring minimal supervision or direction
Misclassified workers retain full rights to workers’ compensation benefits. Some common industries where misclassification occurs are construction, delivery services, cleaning companies, and technical service providers.
What Are the Penalties If an Indiana Employer Doesn’t Carry Workers’ Comp?
Employers who violate Indiana’s mandatory workers’ compensation insurance requirements face serious legal and financial consequences. IC 22-3-2-2 classifies coverage violations as Class A misdemeanors, carrying fines up to $5,000 per violation. Beyond criminal penalties, the Workers’ Compensation Board of Indiana may impose additional civil fines and enforcement actions to compel compliance.
Uninsured employers lose crucial legal protections that workers’ compensation typically provides. While businesses with proper coverage generally cannot be sued directly for workplace injuries, uninsured employers face unlimited liability through civil lawsuits. This exposure includes the injured worker’s full medical costs, complete wage loss, pain and suffering damages, and potential attorney fee awards.
The Workers’ Compensation Board actively pursues employers who operate without required coverage. Investigation outcomes may result in immediate cease and desist orders, daily penalty assessments until compliance occurs, criminal prosecution referrals, and asset seizure for penalty collection. These enforcement measures can create powerful incentives for business owners to maintain proper insurance coverage.
Reporting an Indiana Employer for Failing to Have Workers’ Comp
Reporting employers who lack required workers’ compensation coverage helps protect both your rights and those of fellow workers. The Workers’ Compensation Board maintains enforcement procedures for investigating coverage violations and compelling employer compliance with insurance mandates. Taking action through proper channels strengthens enforcement efforts and may prevent future workplace injuries.
If you suspect that your employer does not carry required workers compensation coverage you may report them by:
- Contacting the Workers’ Compensation Board of Indiana directly with your employer’s basic information, including business name, address, and estimated number of employees
- Gathering employment documentation such as pay stubs, tax forms, or work agreements that confirm your employee status and work relationship
- Collecting any communications about insurance coverage, including emails, notices, or verbal statements from supervisors about coverage gaps
- Documenting workplace injury reports or medical records that show injury circumstances and employer response to coverage questions
- Obtaining witness statements from coworkers who can verify employment relationships and coverage concerns
Board investigations may result in immediate compliance orders requiring employers to purchase coverage before continuing operations. The Board maintains permanent records of coverage violations that may affect future business licensing, bonding requirements, or permit applications for non-compliant employers.
Anonymous reporting options may be available for workers concerned about employer retaliation, and your workers’ compensation lawyer can also help report employer violations.
Why Hire a Workers’ Compensation Lawyer
Workplace injuries create immediate medical and financial pressures that require prompt attention and professional guidance. When your employer lacks required workers’ compensation coverage, these challenges become significantly more complex than standard workers’ compensation cases.
Workers’ compensation attorneys bring knowledge of Indiana law that can prove essential when dealing with uninsured employers. There are various legal options in these situations, including Second Injury Fund claims, civil litigation options, and potential double compensation recoveries, that require experienced legal analysis. The complexity of uninsured employer cases makes self-representation particularly risky given the enhanced benefits and strict deadlines involved.
Moreover, cases where employers lack insurance coverage can involve other legal issues like employer misconduct, retaliation concerns, and disputes over worker classification status. Attorneys understand how to document coverage violations, protect workers from employer intimidation, and pursue recovery through available legal channels.
Indiana Workers’ Comp Frequently Asked Questions
What if My Employer Claims They Don’t Need Workers’ Comp Because I’m Part-Time or Seasonal?
Indiana law requires coverage for all employees regardless of hours worked or seasonal status. Part-time and seasonal workers have the same rights as full-time employees when their employer lacks required insurance.
Can I Still Get Workers’ Comp Benefits if My Employer Goes Out of Business after My Injury?
Yes, you may file a claim through the Second Injury Fund if your employer becomes insolvent after your injury. The fund covers situations where employers cannot pay benefits due to business closure or bankruptcy.
Will I Have to Pay Taxes on Double Compensation or Attorney Fees Recovered from an Uninsured Employer?
Workers’ compensation benefits are typically tax-free, but civil lawsuit recoveries may have different tax implications. Consult a tax professional about your specific recovery amounts and applicable tax rules.
What if Multiple Workers at My Company Were Injured and the Employer Has No Insurance?
Each injured worker may file individual claims through the Second Injury Fund. Multiple claims against the same uninsured employer strengthen enforcement actions and may result in faster compliance orders.
Can I Collect Unemployment Benefits While Waiting for My Second Injury Fund Claim to Be Processed?
You may be eligible for unemployment benefits if your injury prevents you from working, but benefit coordination rules apply. The unemployment office will determine eligibility based on your specific circumstances and injury limitations.
Protect Your Work Injury Claim with Klezmer Maudlin PC
Discovering your employer lacks required workers’ compensation coverage shouldn’t prevent you from seeking appropriate medical treatment and financial recovery after workplace injuries. Indiana law provides specific protections for workers in these situations, including access to enhanced benefits and additional legal remedies not available in standard workers’ compensation cases.
Our lawyers stand ready to assist you with your Second Injury Fund or civil claim. We can also assist with reporting employer violations of Indiana workers’ compensation laws. This comprehensive approach helps to protect your rights and hold employers accountable.
If you’ve been injured on the job in Indianapolis and discovered your employer lacks required workers’ compensation coverage, contact Klezmer Maudlin PC at (317)569-9644. Our team, including an experienced Indianapolis personal injury lawyer, understands Indiana workers’ compensation law and can help you pursue available remedies for your workplace injury.