What to Know about Workers’ Compensation Insurance


Kentucky Workers' Compensation Facts

In Kentucky, all employers are required by law to carry workers’ compensation insurance. Exceptions are made for certain farm and domestic servants, residential maintenance and repair workers, and employees who are covered under federal laws. It is also not necessary to cover sole proprietors, partners, or LLC members, though you can if you want to. Workers’ compensation insurance is designed to cover the costs associated with workplace injuries and occupational illnesses. It can be purchased through a commercial provider or through the Kentucky Employers’ Mutual Insurance fund.

More Kentucky workers' compensation insurance facts

  • On average, workers in Kentucky suffer approximately 58,000 job-related injuries and occupational illnesses a year.
  • This equates to an incident rate of 3.2 injuries per every 100 full-time workers.
  • About 40,600 of these injuries necessitate days away from work, job transfers, and/or work restrictions.
  • In Kentucky, 41% of all work-related injuries occur in the manufacturing, transportation, and utility industries.

Average Cost of Workers’ Compensation Insurance in Kentucky

The good news is that in Kentucky, rates for workers’ compensation insurance are about 18% lower than the national average. Your price for coverage will be based mainly on the types of jobs your employees do and your company’s overall payroll. Every job is assigned a base rate by the Kentucky Department of Workers’ Claims according to how likely it is that workers in that job will suffer a serious injury. With a solid history of worker safety, your business can be rewarded with policy discounts of up to 25%. Some insurance companies are better equipped to meet the needs of businesses in certain industries than others, so it is advantageous to compare a few policies and quotes before making a purchase.

Kentucky Workers' Comp Cost Per $50,000 in Payroll

Why Choose an Independent Insurance Agent?

  • Independent insurance agents live and work in your community.
  • These agents can shop around to help you find the best policies.
  • Your agent can provide one-stop shopping for all your insurance needs.

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What Does Your Workers’ Compensation Insurance Policy Cover?

In Kentucky, employers are required by law to report any workplace injuries and work-related illnesses, regardless of their severity. Workers’ compensation insurance helps to prevent these injuries from causing large financial losses for employees, while protecting employers from potential liability lawsuits. You can expect your Kentucky workers’ compensation policy to cover the following:

  1. Medical treatment: Kentucky workers’ comp uses a managed care program to cover all medical treatment that is reasonable and necessary. It is illegal for the employee to be charged a copay or balance billing. Covered medical care will continue until the injury or occupational illness is resolved.
  2. Travel reimbursement: To prevent the treatment of work injuries from causing financial hardship, workers’ compensation can reimburse employees for reasonable expenses related to travel to and from medical appointments and pharmacies. Employees should keep records of mileage, tolls, and other expenses and request reimbursement within 60 days.
  3. Temporary disability payments: If an employee needs eight or more consecutive calendar days off work to recuperate from a workplace injury, workers’ compensation will provide them with weekly payments of two-thirds of their average weekly wage until they reach their maximum medical improvement (MMI) or return to work.
  4. Permanent disability payments: If an employee is permanently disabled, workers’ comp will provide them with weekly payments of two-thirds of their average weekly wage for a length of time that is determined according to their impairment rating. Employees who are totally disabled can collect benefits for life.
  5. Death benefits: If a work-related injury or occupational illness results in death within four years from the date of the injury, a lump sum payment of approximately $70,000 will be made to the employee’s estate, from which burial expenses may be paid. Additionally, the deceased employee’s spouse and dependents are entitled to receive weekly or bi-weekly income benefits.

Workers’ compensation claims may be denied for a number of reasons, such as if it is determined that the injury occurred outside of working hours, was intentionally self-inflicted, or was caused by employee drug or alcohol use. Employees and employers can file an appeal by contacting the Kentucky Department of Workers’ Claims, which will schedule a Benefit Review Conference. If an agreement cannot be reached at the conference, your case will be assigned a hearing date with an Administrative Law Judge.

Top Insurance Companies that Support Independent Agents in Kentucky

There are currently 331 independent insurance agencies in Kentucky that are ready to help you find the best workers’ compensation insurance policy to cover your business. Your agent can contact several different insurance providers on your behalf to help you find a competitively priced policy that is well-suited to your particular company. Talk to an agent near you to start comparing customized workers’ compensation insurance quotes.

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Why Go Independent When Looking for Workers' Comp Insurance?

  • Expertise in your business
  • Multiple quotes from one agent
  • Get more value for your money