Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.

Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).

In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).

An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.

In Indiana, workers' compensation insurance is mandatory for most employers. Indiana law requires that any business with employees must carry workers' compensation insurance to cover injuries or illnesses that occur as a result of employment. This insurance provides medical benefits, wage replacement, and death benefits for employees who are injured or killed on the job. Employers in Indiana are protected by the exclusive remedy provision, meaning that employees generally cannot sue their employers for work-related injuries if the employer has workers' compensation insurance. Instead, the workers' compensation system is the primary means of obtaining compensation for such injuries. However, if an employer intentionally causes harm or if the injury results from an employer's gross negligence, the exclusive remedy provision may not apply, and the employee might have the right to sue the employer outside of the workers' compensation system. Employers who fail to carry workers' compensation insurance (nonsubscribers) may face penalties and are exposed to the risk of being sued by employees for workplace injuries without the limitations of the workers' compensation system.