If you employ workers in Covington, KY, you are responsible for providing them with a safe and healthy environment in which to work. Unfortunately, accidents can happen at any time, any place, and to anyone. If one of your employees is injured or becomes ill on the job, your business is responsible for covering their medical treatment and financial losses. This is where workers’ compensation insurance can help. Local independent insurance agents can shop around to help you find the best and most affordable workers’ compensation policy to cover your business. Contact an insurance agent in or near Covington, KY to get started.
Is Workers’ Compensation Insurance Required in Covington?
All employers in Covington must maintain compliance with Kentucky’s employment laws. The state mandates that all employers with at least one employee must carry workers’ compensation insurance. There are a few exceptions. It is not necessary to purchase coverage for sole proprietors, LLC members, or partners, though you may if you want to. You are also not required to cover:
- Domestic workers in a private residence if there are fewer than two full-time workers in the home
- Participants in a car pool
- Employees covered by federal liability legislation (like railroad workers)
- Employees who elect non-coverage in writing
- Those providing services in exchange for aid or sustenance from a religious or charitable organization
If you are unsure about whether you need to purchase coverage, your local independent insurance agent can provide guidance.
How Much Does Workers' Compensation Cost in Covington, KY?
Your workers’ compensation cost will be calculated according to the types of jobs your employees do and your company’s overall payroll. Every kind of job is assigned a classification code, and rates for each of these class codes are set by the Kentucky Department of Workers’ Claims. The more likely an employee is to suffer a significant injury on the job, the higher the cost for coverage.
All commercial insurance companies use these base rates when calculating costs. However, because they can offer discounts and incentives of up to 25%, it is in your best interest to compare a few policies and quotes before making a selection. To get a general idea of how much a policy will cost, let’s take a look at the average rates paid per every $100,000 in employee payroll for three of the top industries in Covington, KY:
- Manufacturing: $2,210 a year
- Accommodation & Food Services: $1,230 a year
- Retail Trade: $670 a year
These are average rates based on large industry segments, so individual costs can vary. Within the manufacturing industry, there can be significant differences in cost depending on what your company produces since some manufacturing jobs are more dangerous than others. For assistance getting actual, customized quotes for your particular business, contact a local independent insurance agent.
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What Does Covington Workers’ Comp Insurance Cover?
Workers’ compensation insurance (sometimes referred to as “workman’s comp”) is designed to cover the costs associated with on-the-job injuries and occupational illnesses. This shields your employees from large financial losses as a result of these injuries, and also significantly reduces your company’s risk of facing a liability lawsuit. You can expect your policy to cover the following:
- Medical treatment: Workers’ comp will cover all costs associated with medical treatment and follow-up care for work-related illnesses and injuries. This includes coverage for necessary prescription medications, physical therapy, doctor’s visits, and hospital stays.
- Mileage reimbursement: In Kentucky, injured workers can request reimbursement for miles driven or other travel costs for going to and from doctor visits and the pharmacy. This includes reasonable costs associated with taxi, bus, or train fare.
- Short-term disability: If an employee needs more than seven consecutive days to recuperate from a work-related injury, they will be able to collect a weekly benefit of 2/3 of their average weekly pay until they can return to work. As of 2017, KY required workers’ comp to pay a minimum of $167 per week, and the maximum was $835.04 per week.
- Permanent disability: If a work-related injury is so severe that the injured worker will be unable to ever return to work, workers’ compensation insurance can provide compensation in an amount that is dependent on the injured employee’s impairment rating. This benefit will last up to 425 weeks for a disability rating of 50% or less, and up to 520 weeks for a rating greater than 50%.
- Death benefits: If a work-related injury or illness proves fatal, workers’ comp will pay out a lump sum of at least $70,000 to the employee’s estate, some of which can be applied toward burial costs. Additionally, the employee’s spouse and dependent children will qualify to receive weekly benefits in an amount that is based on the number of dependents and the employee’s previous earnings.
You can learn more about each of these benefits by talking to a local independent agent.
What If Your Workers’ Compensation Claim Is Denied?
Occasionally, a workers' compensation claim may be denied. This might happen if the insurer has reason to believe that the injury in question did not actually occur while on the job if there is reason to suspect that the injury was intentionally self-inflicted, or if the injured employee was under the influence of drugs or alcohol at the time of the incident.
If you feel that your workers’ compensation claim was unjustly denied, the decision may be appealed. You can do this by filing a petition with the KY Department of Workers’ Claims. Your case will be assigned an Administrative Law Judge, who will listen to both sides and issue a ruling at a hearing. If you are unhappy with this ruling, you can submit a Petition for Review to try to have it overturned.
Find the Best Workers’ Compensation Insurance in Covington
If you are looking for an industry-appropriate workers’ compensation policy to cover your Covington business, an independent insurance agent can help. These agents can match you up with an insurance provider that specializes in covering businesses like yours. Your agent can also help you compare rates from different insurers so that you can be sure you are getting your coverage at a competitive price. Discover how easy it can be to find the right workers’ compensation policy for your business.
Contact an independent insurance agent in or near Covington, KY to start comparing customized quotes.
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