Find the Best Workers' Compensation Insurance Options in Kentucky
There are about 351,000 small business owners in Kentucky. Each of these Kentucky business owners needs to consider having workers' compensation insurance to get reimbursed for lost wages and medical expenses after an employee gets injured or ill due to the job or workplace. Workers' comp is also often mandatory for most businesses in the country. In Kentucky, workers' comp is mandatory for businesses with one or more employees, with a few exceptions.
Fortunately, an independent insurance agent in Kentucky can help you find the right workers' comp policy for your business. They know exactly how much coverage to include in your policy based on your specific business. But first, here's an overview of Kentucky workers' comp requirements and more.
How Does Workers' Compensation Insurance Work in Kentucky?
Kentucky workers' compensation insurance provides payouts for costs to an employee who gets ill or injured due to the workplace or job duties. To be covered, an incident can be due to an unsafe job site, repeated work tasks, or the equipment or materials used on the job. Kentucky workers' comp can also replace a portion of an employee's regular wages if they must miss work after the incident. This coverage can also reimburse a business for the costs of labs, prescription medications, and doctor or hospital visits.
Having workers' comp as a part of a Kentucky business insurance policy exempts your company from employee lawsuits related to covered incidents. Also, family members of these affected employees are prevented from suing the business. Having workers' comp insurance in Kentucky can protect your team and your business from possible financial losses that could otherwise be substantial.
Kentucky Workers' Compensation Exemptions
Kentucky has a couple of exemptions to its workers' comp laws. Understanding these exemptions is key for business owners. Kentucky workers' comp exemptions include the following types of workers and industries:
- Charitable organization workers
- Religious organization workers
- Some private home domestic workers
- Workers who are members of a religious sect that opposes workers' comp insurance benefits
- Temporary employees who work less than 20 days in remodeling, repair, maintenance, or similar work
- Agricultural workers
A Kentucky independent insurance agent can help determine if your business is required by state law to have workers' comp and how much it needs.
Do Independent Contractors Need Workers’ Comp Coverage?
According to state law, Independent contractors in Kentucky don't need to be covered by workers' comp. However, independent contractors in Kentucky can still choose to get this coverage if they want to. There are benefits to having coverage even though it's not required.
Independent contractors aren't required by Kentucky state law to be covered by workers' comp, but many still decide to get coverage. If you work as an independent contractor in Kentucky, you don't have to worry about workers' comp requirements or possible resulting penalties from not having coverage, but you may still want to get a policy to have that protection. Not having coverage could end up costing you much more than the cost of workers' comp premiums if an incident occurs.
Do Kentucky Business Owners Need to Be Covered by Workers’ Compensation?
In a couple of specific cases, Kentucky business owners don't need to be covered by workers' comp. These include sole proprietors, business partners in a firm, and qualified members of LLCs. These types of business owners in Kentucky aren't required to have workers' comp by state law.
However, choosing to have workers' comp coverage can help you potentially save thousands of dollars or more. Considering that just one workplace incident could result in extremely expensive medical treatment and lost time from work, you may still want to get coverage to stay safe. Without workers' comp, you could have to pay these costs out of your own pocket, which could result in a huge loss for your business.
What Does Kentucky Workers' Compensation Cover?
Kentucky workers' comp provides reimbursement for many potential costs related to covered incidents of employee injuries or illnesses. These covered costs can include doctor visits, hospital stays, medications, treatment, and more. Many types of expenses can result from one employee's injury or illness. Workers' comp can also pay to replace a portion of an affected employee's regular wages while they're out of work due to a covered incident.
Kentucky workers' comp can also provide compensation for funeral costs if a tragic incident results in an employee's death. Having coverage exempts a business from employee lawsuits for covered incidents. The affected employee's family members cannot sue the business either if workers' comp was available. So, having workers' comp is a great way to help safeguard your business against serious incidents in a number of ways.
Here's a deeper overview of what workers' comp covers in Kentucky:
- Medical expenses: Workers' comp can help pay for medical expenses after covered incidents, including prescription medications. If an employee needs a prescription for chronic pain due to their job tasks, workers' comp can pay for it.
- Disability benefits: Workers' comp can also help pay for disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, workers' comp can help cover these costs.
- Death benefits: Workers' comp can also help pay death benefits for employees who die due to a covered incident. The death benefits are most often paid to an employee's surviving dependent family members or spouse.
- Funeral costs: Workers' comp can even help cover funeral costs for deceased employees due to a covered incident. Reimbursement can apply to burial costs, coffins, and more.
- Ongoing care: Workers' comp can help pay for required ongoing care costs to continue treating a covered injury or illness. If a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.
- Time off during recovery: Workers' comp can help replace some of an employee's wages while they take time off work to recover from a covered incident. If an employee needs to stay at the hospital for two weeks after surgery due to a workplace incident, workers' comp can help continue some of the wages they would've made during that time.
A Kentucky independent insurance agent can help you review your policy's coverage in full so you can understand exactly what's covered.
How Much Does Workers’ Compensation Insurance Cost in Kentucky?
The average cost of workers' compensation insurance in Kentucky is $49 per month or $588 per year. That said, the cost of workers' comp insurance can vary based on a number of factors. Your business's exact number of employees and its annual payroll heavily influence the cost of your workers' comp policy.
The location and industry of your company can also influence your workers' comp costs. Some industries have an inherently higher risk level, including the trucking and construction industries, so insurance carriers charge higher premiums for coverage in these industries. Also, your business's prior claims history and the limits applied to coverage influence the cost of your workers' comp.