Indiana Code

Ind. Code § 22-3-5-1 (2026)

Requirements; self-insurance; security; fees

✓ current as of May 2026
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     Sec. 1. (a) Every employer under IC 22-3-2 through IC 22-3-6, except those exempted by IC 22-3-2-5, shall:

(1) insure and keep insured the employer's liability under IC 22-3-2 through IC 22-3-6 in some corporation, association, or organization authorized to transact the business of worker's compensation insurance in this state; or

(2) furnish to the worker's compensation board satisfactory proof of the employer's financial ability to pay direct the compensation in the amount and manner and when due as provided in IC 22-3-2 through IC 22-3-6.

     (b) Under subsection (a)(2) the board may require the deposit of an acceptable security, indemnity, or bond to secure the payment of compensation liabilities as they are incurred. The board shall charge the following:

(1) An initial application fee of five hundred dollars ($500) to be paid along with the proof of financial ability required under this section.

(2) A renewal fee of two hundred fifty dollars ($250) if the employer holds a certificate of self insurance.

(3) A late filing fee of two hundred fifty dollars ($250).

Formerly: Acts 1929, c.172, s.68. As amended by P.L.144-1986, SEC.50; P.L.28-1988, SEC.42; P.L.170-1991, SEC.12.

 

Notes of Decisions
Cited in 5 cases, 1981–2020 · leading case: In Re Kemper Ins. Companies, 819 N.E.2d 485 (Ind. Ct. App. 2004).
In Re Kemper Ins. Companies, 819 N.E.2d 485 (Ind. Ct. App. 2004). · cites it 6× “Indiana Code Section 22-3-5-1(a) states that these employers must either obtain worker's compensation insurance through an outside entity or furnish to the Board proof of their financial ability to pay such compensation directly as provided by law.”
Steel Transp., Inc. v. Hyatt, 740 N.E.2d 552 (Ind. Ct. App. 2000). · cites it 2× “Ind.Code § 22-3-5-1, Ind.Code § 22-3-7-34(a) and Ind.”
Landers v. Pickering, 427 N.E.2d 716 (Ind. Ct. App. 1981). “Code §§ 22-3-5-1 through 22-3-5-5. 1 Landers also alleges that Pickering failed to comply with Ind.”
Am. Motorists Ins. Co. v. Worker's Comp. Bd., 819 N.E.2d 485 (Ind. Ct. App. 2004). · cites it 2× “Indiana Code Section 22-3-5-1(b) provides that the Board may require a self-insured employer to deposit a bond to "secure the payment of [worker's compensation] liabilities as they are incurred.”
KNK Grp., Humphreys Constr., C'ville Steel Roofs, & Mitchell Humphreys v. Doug Sarver (mem. dec.) (Ind. Ct. App. 2020). “These is no evidence that K & K Group, Humphreys Construction, C’ville Steel Roofs or Humphreys were insured Court of Appeals of Indiana | Memorandum Decision 20A-EX-402 | October 26, 2020 Page 5 of 24 for worker’s compensation purposes as required by Indiana Code § 22-3-5-1 on…”
— Ind. Code § 22-3-5-1(a) — 1 case
In Re Kemper Ins. Companies, 819 N.E.2d 485 (Ind. Ct. App. 2004). “Indiana Code Section 22-3-5-1(a) states that these employers must either obtain worker's compensation insurance through an outside entity or furnish to the Board proof of their financial ability to pay such compensation directly as provided by law.”
— Ind. Code § 22-3-5-1(b) — 2 cases
In Re Kemper Ins. Companies, 819 N.E.2d 485 (Ind. Ct. App. 2004). “Indiana Code Section 22-3-5-1(a) states that these employers must either obtain worker's compensation insurance through an outside entity or furnish to the Board proof of their financial ability to pay such compensation directly as provided by law.”
Am. Motorists Ins. Co. v. Worker's Comp. Bd., 819 N.E.2d 485 (Ind. Ct. App. 2004). “Indiana Code Section 22-3-5-1(b) provides that the Board may require a self-insured employer to deposit a bond to "secure the payment of [worker's compensation] liabilities as they are incurred.”
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