Kentucky Workers Compensation Insurance: Quotes From $36/mo

There has been a steady increase in the number of occupational-related injuries and illnesses in Kentucky. The U.S. Bureau of Labor Statistics reported over 38,000 workplace illnesses and injuries in 2019. Another report showed an average of 1,020 occupational-related hospitalizations in 2021.

First-time workplace events cause the vast majority of workers’ compensation claims. Workers’ compensation insurance premiums should begin to decline as people receive more training, notwithstanding the higher frequency. This article discusses how Kentucky workers compensation insurance works, what it covers, and other essential aspects of this policy.

What Is Workers’ Compensation Insurance?

In 1916, the Kentucky government enacted workers’ compensation insurance. The system’s main role is to compensate all workers who suffer illnesses or injuries while on their jobs. This act offers benefits to employees and families. Primarily, it safeguards employers and employees by offering a no-fault system to cover all employee injuries regardless of negligence or party at fault.

KY workers comp offers income protection and medical care to employees who sustain injuries while working. It will also offer your employees incentives to minimize workplace illness and injuries.

If you are operating a small business, purchasing Kentucky workers insurance from private insurers is the best option. But you can self-insure yourself if you own a large corporation with good financial strength. It would be best if you also met the following qualifications:

  • Should have assets that are worth $10 million more than your entire liabilities

  • Complete a self-Insurance package application form two months before your self-insurance date

  • Submit your compensation loss data for your employees in the last five years

  • Have a minimum security deposit of $500,000

  • Have a Guarantee Agreement

  • $10 million minimum coverage limit for each occurrence

  • The Board of directors must agree to your decision to become a self-insurer

When Do You Need to Get Workers Compensation Insurance in Kentucky?

All employees in Kentucky need to be covered by good insurance coverage. But some exceptions exist. Here are some industries that must have workers comp insurance in Kentucky:

  • Construction: This industry is one of the primary sectors where this insurance is compulsory. All general contractors, subcontractors, and other construction businesses must protect employees from common work-related injuries or illnesses.

  • Manufacturing: The manufacturing industry is complex, from food processing to the automotive sector. This nature of work exposes your employees to potential risks in the workplace.

  • Healthcare industry: Nursing homes, outpatient centers, and hospitals must have workers comp insurance as employees are exposed to multiple occupational hazards.

  • Retail and hospitality: hotels, retail stores, or restaurants must have workers’ compensation to pay for potential accidents and injuries workers may encounter on their job.

  • Transportation and logistics: Businesses involved in trucking, warehousing, or logistics must have workers’ compensation coverage since they are exposed to numerous risks while driving or loading and unloading heavy boxes. Thus you need to check with Kentucky department of workers compensation for specific requirements.

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What Government Agency Oversees Workers Compensation in Kentucky?

Kentucky Department of Workers’ Claims (DWC) oversees workers comp insurance in Kentucky. It is an administrative agency that enforces Kentucky workers compensation laws and regulations. However, DWC only deals with administering KY workers comp laws and does not offer insurance coverage to businesses.

Here are some of the key responsibilities and functions of this agency:

  • Claims administration: DWC is crucial in processing and investigating workers’ compensation claims. They work vigilantly to ensure that all employees receive the required benefits from the workers comp insurance Kentucky after suffering an occupational-related injury.

  • Dispute resolution: Disputes between insurance companies, employers, and employees can arise anytime regarding making claims. The government agency is responsible for resolving those conflicts through mediation and administrative hearings.

  • Compliance and enforcement: DWC ensures all businesses have the right coverage and comply with Kentucky’s stipulated regulations and laws. The role of this agency is to ensure employees receive the right wage replacement benefits and medical treatment.

  • Benefit determination: Before an employee receives their benefits, some evaluation must be made to determine the help they should get. DWC is crucial in evaluating medical evidence and assessing an employee’s disability rating to determine the right compensation amount.

  • Education and outreach: DWC ensures all stakeholders understand Kentucky workers compensation requirements. They do so through educational resources and training programs for all parties.

Which Businesses Are Exempt from Getting Workers Compensation Insurance in Kentucky?

You don’t have to worry about acquiring workers’ comp coverage if you operate a sole business. Business owners often exclude themselves from this policy and only use health insurance if injured while working.

Here are some common businesses that are exempt from this coverage in Kentucky:

  • Sole proprietors: If you own and operate your business individually, you are not legally required to have worker’s compensation insurance. You can use your health insurance if you suffer any injuries while working.

  • Partnerships: If you are a partner member in a partnership organization, you are exempted from having worker’s compensation insurance. But you must insure your employees.  

  • Domestic workers: All workers employed in a private household, such as caregivers or housekeepers, are not legally required to have worker’s compensation insurance.

  • Musicians: Musicians who are either self-employed or independent contractors are exempt from obtaining a KY workers comp.

  • Workers who are federally covered: Some workers are covered via a federal workers’ compensation program and are exempt from securing state workers’ compensation insurance.

  • Railroad workers: All railroad workers are covered by the Federal Employers Liability Act (FELA) and thus do not require a workers’ compensation law.

  • Spraying airplane workers: Workers who spray or dust airplanes may have exemptions from KY workers comp insurance.

  • Nonprofit organization workers: Workers who volunteer for various nonprofit organizations are exempt from this type of coverage. However, only volunteers are exempted, but those who receive compensation must be adequately covered.

How to Save Money on Your Worker’s Compensation Insurance in Kentucky

There are various ways to lower the rates of your worker’s compensation insurance. The first way is to classify your employees in the right way. For instance, employees who work on light duties are exposed to minimal risks and will incur minimal costs to insure.

You can also purchase a pay-as-you-go compensation policy, which allows you to pay lower upfront premiums and make payments according to your actual payroll rather than estimated payroll. Lastly, you should have a safety program in place, this will illustrate that you have a safe working environment, and your carriers will charge a lower insurance premium.

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How Much Money Does Kentucky’s Workers Compensation Insurance Give?

The amount of compensation you receive will depend on the kind of operations performed and the damage you suffered. Here is a brief breakdown of benefits employees can receive in Kentucky:

Medical Benefits

State of Kentucky workers compensation policy must cover all necessary and reasonable hospital expenses associated with work-related illnesses or injuries. The costs can include medication, surgeries, hospitalizations, and other treatments.

Temporary Partial Disability Benefits (TPD)

These benefits can be primarily made if a physician states that workers cannot resume their normal duties. These benefits are paid if employees cannot perform their duties for up to seven consecutive days. Employees who miss work for eight calendar days after a work-related injury should receive these benefits. The minimum weekly payment an employee will receive is $169.67, and a maximum of $933.35. These benefits will stop when they reach their maximum medical improvement or resume their duties.

Temporary Total Disability Benefits (TTD)

Temporary total disability is when an employee sustains injuries that affect them completely but temporarily. When your physician classifies an employee’s injuries or illness as TTD, they can expect a minimum weekly payment (20% of the stipulated state weekly wage) of $138.86. An employee can expect 100% of the state weekly wage for the maximum weekly payment, amounting to $694.30.

Permanent Partial Disability (PPD)

PPD occurs when an occupational-related injury causes a permanent but partial loss of mental or physical function. This permanent impairment will not prevent employees from engaging in their work duties. However, it will affect their ability to perform some activities. PPD benefits are paid for 425 weeks but, in some instances, can even go up to 520 weeks. However, you lose your eligibility for these benefits once you turn 70. The weekly maximum pay for employees is $323.

Permanent Total Disability (PTD)

PTD will occur when an employee can no longer work after an occupational-related mishap. The PTD benefits are made until an employee dies. These benefits are calculated as two-thirds of an employee’s average weekly wage and can be a maximum of up to $711 for one week.

Death Benefits

Beneficiaries may be compensated in the event of a worker’s death due to a disease or accident related to their employment. Benefits in Kentucky might reach up to 75% of the deceased worker’s weekly salary. But the figures are affected by the maximum ($850) or minimum ($170) amount. Once the benefits are calculated, beneficiaries equitably receive them.

How Long Will It Take an Employee to Receive Benefits?

An employee should be entitled to insurance benefits if they are unable to return to work within seven days of an event at work. They should get lost income benefits within 14 days of informing the employer about the injury. Within 30 days, medical charges must be paid directly to the healthcare provider.

Employees are eligible for retroactive payments if their disability lasts longer than the specified waiting time. In such a situation, an employee will receive benefits even for the waiting period. These benefits will cover the Kentucky workers compensation waiting period from the accident date to when a worker is eligible for the help.

Penalties for Not Getting Worker’s Compensation in Kentucky

All businesses must comply with the Department of workers compensation Kentucky rules and regulations. If your business requires adequate coverage and fails to do so, you can be fined up to $1,000 for each employee.

In other instances, Kentucky can issue your business a stop-work order for failure to acquire adequate coverage. This order prohibits you from continuing to operate your business until you adhere to workers comp laws in Kentucky.

In addition, failing to comply with the law could result in serious legal repercussions. An employee may sue you, and you must cover any medical costs or missed income. The costs of lawsuits and settlements can financially cripple your business. Kentucky state can also impose various civil penalties on all uninsured employers.

What is Kentucky Assigned Risk Workers Compensation?

The assigned risk workers’ compensation is insurance coverage designed for businesses without insurance coverage through private insurance carriers. It is facilitated by the Kentucky Employers’ Mutual Insurance (KEMI).

To obtain this coverage, you must complete and apply to KEMI, which reviews it and checks your eligibility. Once you qualify, you will be assigned to an insurance carrier participating in the Assigned Risk Program. However, this is just a temporary solution, and you must seek coverage from insurance providers.

Kentucky Workers Compensation Insurance Cost

The average Kentucky workers compensation insurance cost is $53 per month or $636 per year. When you acquire a workers’ compensation insurance policy, you must review costs from several providers. 

The premiums a carrier quotes will vary depending on the number of employees and the safety measures you have incorporated to ensure a safe working environment. Kentucky workers comp rates from the best companies in the market are broken down below:

Cost Per Month Cost Per Year Best For
NEXT $12.20 $146 Best overall; Fastest worker’s compensation insurance
Thimble $40 $480 On-demand workers comp coverage
Coverwallet $45 $540 Comparing worker’s compensation insurance quotes online
Tivly $55 $660 Comparing worker’s compensation insurance quotes over the phone
Hiscox $60 $720 Global workers compensation coverage
The Hartford $70 $840 Workers compensation insurance policy with added perks

Factors That Determine Kentucky Workers Compensation Cost

Here are some factors that determine Kentucky worker’s compensation insurance cost:

  • Industry classification: The type of work affects how an industry is put into groups. Different industries have varying levels of risk associated with workplace injuries. More money is spent on workers’ compensation in construction and manufacturing than in office management. The type of business affects insurance rates.

  • Payroll: Costs for workers’ compensation depend on how many people are hired. The insurance premium is typically calculated as a percentage of the total payroll. Workers’ compensation claims increase when more people are hired, increasing costs.

  • Claims history: The number of cases for workers’ compensation affects how much insurance costs. Frequent claims or major injuries may raise premiums. Insurance companies can guess how many claims they will get in the future based on a company’s past claims.

  • Experience modification Factor (EMR): The EMR changes an employer’s workers’ compensation rate based on past claims. If an employer has more claims than others in their field, their EMR will be higher than 1.0. Costs go down when EMRs are low, and rates go up when they are high.

  • Safety programs and risk management: Workplace injuries and workers’ compensation claims go down with safety measures and risk management. Businesses that take many safety steps, like training their employees often, following safety rules, and reporting claims quickly, often get insurance discounts and other perks. Employers can lower their costs for workers’ compensation by coming up with good safety practices.

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Best Kentucky Workers Compensation Insurance Companies

You must consider many factors when selecting a good insurance company. Firstly, check the company’s licensing to avoid dealing with scammers. Also, ensure you review the financial capabilities of this company, as some may need more finances to settle claims. Read on to learn about the pros, cons, best for, and Kentucky workers comp rates from the following reputable companies:

NEXT

Pros

  • Efficient Kentucky worker’s compensation waiting period

  • Acquire a certificate of insurance for your worker’s compensation policy

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest to workers’ compensation insurance

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

With NEXT, you can obtain KY workers comp on their virtual platform. This company eliminates the need for tedious paper applications and ensures that managing your policy online is straightforward. It offers excellent rates for small and large businesses. The available discounts on bundled-up policies make this insurance provider a leading company in the market. You can also easily acquire and share your certificate of workers’ compensation insurance policy. 

Best for: Best overall; Fastest worker’s compensation insurance 

Average cost: $12.20 per month

Our rating: 10/10

The Hartford

Pros

  • Their process of KY workers comp insurance application is simple and efficient.

  • You can easily include add-ons on your policy

  • They offer resources that help educate employers and employees on the need for this policy

Cons

  • You must consult an agent before purchasing a policy

The Hartford offers amazing programs in addition to your workers’ compensation insurance. They have a health program that ensures employees recover well and quickly. This provider has also collaborated with multiple pharmacies to ensure employees obtain medication easily. Since the company has been offering insurance products for multiple years, you are guaranteed that you are working with a company that perfectly understands the insurance market. They also offer financial guarantees and will settle even higher claims for your business. 

Best for: Workers compensation insurance policy with added perks

Average cost: $70 per month

Our rating: 10/10

CoverWallet

Pros

  • Coordinates with multiple insurance carriers to offer clients competitive rates

  • You can use their comparison tool to get the best insurance rate.

  • Have the freedom to cancel your policy at any time

  • Work with leading and accredited insurance carriers in the market.

Cons

  • The KY worker’s compensation insurance policies they sell are underwritten by third parties

CoverWallet is a world-class insurance brokerage firm serving the Kentucky clientele base. You can select from your preferred carrier depending on their rates and other perks they offer. This firm lets you pay your insurance premiums in installments rather than lump sums. Their user-friendly comparison tool enables customers to discover the best insurance rate that meets their particular requirements. In addition, CoverWallet allows customers to cancel their policy at any time, offering flexibility and convenience. Working with market-leading and accredited insurance carriers strengthens their reputation further. 

Best for: Comparing workers compensation insurance quotes online 

Average costs: $45 per month

Our rating: 10/10

Thimble

Pros

  • The coverage process is efficient and prompt

  • You can select from many policy choices

  • Competitive pricing on all their insurance products

Cons

  • The customer support team is limited

Thimble is ideal for freelancers or independent contractors looking for short-term coverage. They also offer businesses long-term coverage options. Another incredible feature is their responsive website and friendly customer service team. For businesses that require prompt coverage, this is the best choice. One of their strengths is their efficient and timely coverage process, which allows businesses to obtain insurance rapidly. Thimble also offers various policy options, allowing businesses to select the coverage that best meets their needs. Their insurance products feature competitive pricing, which adds to their appeal.

Best for: On-demand workers comp coverage

Average costs: $40 per month

Our rating: 9/10

Tivly

Pros

  • Matches Kentucky businesses to the right insurance partner

  • Have unmatched experience in selecting the right policy for your business

  • It’s an insurance marketplace: you have the freedom to compare prices from multiple carriers

Cons

  • No mobile app

Tivly is a great marketplace to connect with a top-rated insurance carrier. They help you identify a carrier who can adequately cover your business. If you want insurance quotes on your phone, you can request their representative to send you the prices. Tivly facilitates the comparison of prices from multiple carriers, enabling businesses to make informed decisions. Call now and talk with a representative to compare workers comp insurance quotes over the phone. 

Best for: Comparing workers compensation insurance quotes over the phone 

Average cost: $55 per month

Our rating: 9/10

Hiscox

Pros

  • Global coverage available for international businesses

  • Discounts apply if you purchase several insurance products

  • Automatically renew your insurance policy

Cons

  • Limited to certain states

Hiscox is an experienced insurance provider with unrivaled financial capabilities. This company can settle claims faster and more effectively. They have collaborated with other partners to offer the best deals on their workers’ compensation insurance policy. Hiscox is a dependable option for businesses looking for workers’ compensation insurance due to its solid reputation, expedient claims settlement, and collaborations with partners to offer attractive deals.

Best for: Global workers compensation coverage

Average costs: $60 per month

Our rating: 9/10

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