Lexington Workers' Compensation Insurance

Your Complete Guide to Lexington, KY Workers' Compensation Insurance

Find the right workers' compensation insurance policy for you.

Accidents sometimes happen, even to the most careful people. This is true on the roads, at home, and in the workplace. If you are an employer in Lexington, KY and one of your workers is injured or becomes ill on the job, your business is responsible for covering any necessary medical treatment and associated financial losses. Workers’ compensation insurance provides this coverage.

Independent Insurance Agents with offices in or near Lexington can provide guidance when you are looking for a solid workers’ compensation insurance policy. They can shop around to help you find the best and most affordable policy to cover your specific business. Contact an insurance agent near you to start comparing quotes.

Is Workers’ Compensation Insurance Required in Lexington?

Most, but not all, employers in Lexington, KY are required to have workers’ compensation insurance. The state of Kentucky mandates that all businesses with one or more employees must carry this coverage. There are a few exceptions. Kentucky does not require you to purchase coverage for:

  • Sole proprietors, LLC members, or partners
  • Workers with federal liability protections, like railroad workers and maritime workers
  • Farm laborers
  • Domestic servants unless there are more than two full-time workers employed by the household
  • Independent contractors

To learn more about your requirements under the law, consult your local independent insurance agent.

How Much Does Worker’s Comp Insurance Cost in Lexington, KY?

Rates for workers’ compensation insurance are calculated according to the kinds of jobs your employees do and your company’s overall annual payroll amount. Every job type is assigned a classification code, and the Kentucky Department of Workers’ Claims assigns rates for each of these job classifications. The greater the chance that a worker may suffer a significant injury on the job, the higher the cost for coverage will be.

Commercial insurers are required to use these assigned base rates when calculating costs for coverage. However, these insurance companies have some leeway when it comes to offering discounts and incentives, which can reduce costs by up to 25%. It is in your best interest to compare policies and quotes from a few different providers before you make a selection. The following are average rates paid per every $100,000 in employee payroll for the three top industries in Lexington, KY:

  • Manufacturing: $2,210 a year
  • Retail Trade: $670 a year
  • Educational Services: $290 a year

Workers in manufacturing plants are far more likely to be injured on the job than teachers in a classroom setting, so the costs to cover these workers are higher. However, these are broad-based averages. Within the manufacturing industry, rates can vary significantly according to what is being produced. To find out what your specific cost for coverage will be, contact a local independent insurance agent and start comparing quotes.

What Does Lexington 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 illnesses. This saves your employees from facing large financial losses as a result of these injuries, while also significantly reducing your company’s risk of being sued in a liability lawsuit. You can expect your Lexington workers’ compensation insurance policy to pay for the following:

  • Medical treatment: Workers’ compensation will cover all costs associated with necessary medical treatment and follow-up care related to occupational illnesses and injuries. This includes coverage for associated prescription medications and necessary medical devices.
  • Mileage reimbursement: Workers’ comp will reimburse your employees for their mileage for all trips to doctor’s appointments and the pharmacy that are related to the workplace injury. If the employee does not drive but instead takes a bus, taxi, Uber or other means of transportation, these costs will also be covered, within reason.
  • Short-term disability: Employees who need more than seven consecutive days to recuperate from a work-related injury can collect a weekly benefit of 2/3 of their average weekly pay until their treating physician determines they can return to work.
  • Permanent disability: If a work-related injury is so severe that the injured employee cannot return to work, workers’ comp can provide compensation in an amount that is based on both the employee’s average wages and the severity of their injury. These benefits can continue for 425 to 520 weeks.
  • Survivor benefits: If an employee dies due to a work-related injury or illness, workers’ comp will provide a one-time lump-sum payment to the employee’s estate, as well as weekly compensation to the employee’s spouse and dependent children. The amount paid out will depend on the number of dependents.

You can get more information about each of these benefits by talking with a local independent insurance agent.

What If Your Workers’ Compensation Claim Is Denied?

Workers' compensation claims are sometimes denied. This may happen if your insurance company has reason to believe that the injury in question was not sustained on the job, or that it was intentionally self-inflicted. Claims may also be denied if the injured worker was under the influence of drugs or alcohol at the time of the incident. If you believe that your workers’ compensation claim was unjustly denied, you can appeal the decision by contacting the Kentucky Department of Workers’ Claims.

Find the Best Workers’ Compensation Insurance in Lexington

An independent insurance agent can help you find an industry-appropriate workers’ compensation policy to cover your Lexington business. Your local agent can provide you with customized quotes from competing insurance companies that specialize in covering businesses like yours. That way, you can be sure you are getting suitable coverage at a great price. Discover how easy it can be to find the right workers’ compensation policy for your business. 

Contact an insurance agent in or near Lexington, KY to start comparing quotes today.

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