A new Indiana law requires professional services employers to obtain workers' compensation insurance for student workers in apprenticeships and work-based learning programs.
Most professional services owners in Indiana don't realize that if they participate in apprenticeships, youth apprenticeships, pre-apprenticeships, or work-based learning courses, they now have a direct insurance obligation they may not have budgeted for.
Senate Bill 0080, signed into law, contains a provision buried in Section 300 (IC 20-20.5-11.5-4(a), page 377) that fundamentally changes what it costs to bring student workers into your firm. Starting July 1, 2026, any employer who takes on a student through a work-based learning program must do two things: execute a written agreement with the educational institution and carry workers' compensation insurance that covers those student workers.
If your professional services firm—whether accounting, engineering, architecture, consulting, legal services, or similar—currently participates in or is considering participation in any of these programs, you're affected:
Even if you've been hosting student workers informally or through a school partnership, this rule applies once the effective date arrives.
The provision creates two concrete obligations:
1. Written Agreement: You must have a signed agreement in place with the school or educational program. This should clarify the terms of the student's work, responsibilities, and the insurance arrangement.
2. Workers' Compensation Coverage: You must carry workers' compensation insurance that explicitly covers student workers participating in the program. This is not optional and not something you can assume is covered under a standard policy. You'll need to verify with your insurance carrier that your policy includes these individuals or obtain additional coverage.
Workers' compensation insurance for student workers will add a line item to your budget. The exact cost depends on your industry classification, payroll, and claims history, but it's a real expense that needs to be factored into whether participating in these programs makes financial sense for your firm.
Beyond cost, there's a compliance component: you'll need to maintain documentation of the written agreement and proof of coverage. If an injury occurs and you don't have the required insurance in place, you face potential liability and regulatory penalties.
The effective date is July 1, 2026. That gives you time to plan, but it's worth starting conversations with your insurance broker now. Insurance carriers may have specific requirements or lead times for adding this coverage, and you'll want to understand your options before the deadline arrives.
If your firm has been considering apprenticeship or work-based learning partnerships, use this window to evaluate the true cost of participation, including the insurance requirement, before committing.
Source: Indiana Senate Bill 0080, Section 300, IC 20-20.5-11.5-4(a), page 377.