Some jobs are just more dangerous than others. And sometimes, employees get hurt while working—even in seemingly safe occupations. Fortunately employers in Owensboro, Kentucky can keep workplace injuries from leading to large financial losses by investing in a suitable workers’ compensation insurance policy. A local independent insurance agent can help you find the best coverage for your Owensboro business. Find an insurance agent near you to learn more.
Is Workers’ Compensation Insurance Required in Owensboro, KY?
Employers in Owensboro must remain in compliance with Kentucky’s workers’ compensation coverage requirements, or they can face financial penalties and other legal action. In Kentucky, you are required to carry workers’ compensation insurance if you have at least one employee. There are a few exceptions. You are not required to cover most domestic servants, farmworkers, or independent contractors. Also, employees covered by federal liability protections, such as railroad and maritime workers, are also exempt from coverage.
Additionally, you are not required to purchase coverage for sole proprietors, LLC members, or partners, but you do have the option to do so if you wish to. In this state, workers do have the ability to opt-out of workers’ compensation coverage if they do so in writing. To learn more about your requirements, talk to a local independent insurance agent.
How Much Does Worker’s Comp Insurance Cost in Owensboro?
Every business is different, and just like with business insurance, workers’ compensation rates vary according to the business size, type, and scope. Your cost for coverage will depend mainly on the types of work your employees do and your company’s overall payroll amount. Each job is assigned a classification code.
Rates for each class code are set by the KY Department of Workers’ Claims according to the risks associated with the job. Insurers use these rates as a starting point and can offer discounts and incentives of up to 25% based on your company’s safety rating, claims history, and experience modification. That's why comparing quotes is beneficial. The following are average rates paid per every $100,000 in employee payroll for the top three industries in Owensboro, KY:
- Manufacturing: $2,210 a year
- Retail Trade: $670 a year
- Construction: $5,765 a year
Obviously, construction workers have a much higher risk of serious employee injuries than retail workers. That's why rates are so much higher in this industry. Actual rates will depend on more specific details about what the employees do. Talk to an independent insurance agent in Owensboro to learn how much a workers’ compensation policy will cost for your business.
Owensboro Workers’ Compensation Pays for the Cost of Medical Treatment
If an employee is injured at work or suffers from an occupational illness due to exposure to toxins in the workplace, they are entitled to have their medical treatment covered in full. Workers' compensation will cover the cost of medical treatment, follow-up care, physical therapy, medications, prosthetics, and other expenses necessary for your employee to heal. This insurance can also provide reimbursement for miles driven, taxi, bus, or Uber fares, and parking costs that may be incurred by your employee while traveling to and from doctor’s appointments and the pharmacy.
Owensboro, KY Workers’ Compensation Insurance Provides Disability Coverage
Workers’ compensation also provides disability benefits, which are designed to replace lost wages if an employee requires more than one week off work to recuperate from a job-related injury or illness. This coverage can provide injured employees with t2/3 of their average weekly wages for the entire time they are off work under orders by their treating physician. If an injury results in an employee becoming permanently disabled, workers’ compensation can provide the injured worker with weekly compensation in an amount that is based on their previous earnings and their impairment rating. This coverage can continue for between 425 and 520 weeks, depending on the severity of the disability.
Workers' Compensation Covers Workplace Fatalities in Owensboro
It is a sad fact that employees sometimes suffer fatal injuries on the job. From collisions while making deliveries to tragic accidents in manufacturing plants, these accidental deaths are most unfortunate. Workers’ compensation insurance can help ease the financial burden placed on the deceased employee’s family by providing them with survivor benefits. Following a job-related fatality, workers’ compensation can provide a lump-sum payment of about $70,000 to the employee’s estate. These funds can help to contribute toward burial costs and other immediate expenses.
After that, the employee’s family can receive weekly benefits in an amount that's based on the worker’s average weekly pay. If the employee leaves behind only a spouse, their spouse is entitled to 50% of their average earnings. If there are also children in the household, the amount will be 45% for the employee’s spouse and an additional 15% for each dependent child.
What Workers’ Compensation Will Not Cover in Owensboro
Occasionally, workers’ compensation claims are denied. This may happen if the injury didn't occur on the job, if the hurt worker isn't an official employee of the company, or if there's reason to suspect that the injury was intentionally sustained or that the employee was under the influence of drugs or alcohol at the time of the accident.
Other reasons for the denial of a claim may be if an employee failed to use provided safety equipment, if there was horseplay involved in the incident, or if the injury occurred during a voluntary recreational event outside of work hours. If you feel that a workers’ compensation claim was unjustly denied, you can challenge the decision by contacting the Kentucky Department of Workers’ Claims and filing an appeal.
Find the Best Workers’ Compensation Insurance in Owensboro
If you're looking for a great workers’ compensation insurance policy to cover your employees, a local independent insurance agent can help you find affordable coverage. These agents can match you up with insurance companies that specialize in covering businesses in your industry and can help you compare customized quotes from each of them. Discover the many benefits of working with a local, independent insurance professional.
Contact an independent insurance agent in or near Owensboro to get started.
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