Sometimes workers get hurt on the job. This is true even in seemingly safe occupations like clerical work and data analysis. Fortunately, employers in Richmond, Kentucky can keep workplace injuries from leading to large financial losses by investing in a suitable workers’ compensation insurance policy. This insurance protects employers as well as employees.
A local independent insurance agent can help you find the best workers’ compensation coverage for your Richmond business. Find an insurance agent near you to learn more.
Is Workers’ Compensation Insurance Required in Richmond, Kentucky?
Employers in Richmond must comply with Kentucky’s workers’ compensation coverage requirements, or they can face financial penalties and other legal actions, including jail time.
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, farm workers, independent contractors, or employees covered by federal liability protections, such as railroad and maritime workers.
Additionally, you are not required to purchase coverage for sole proprietors, LLC members, or partners, but you can if you want to. In this state, workers have the ability to opt out of workers’ compensation coverage if they do so in writing.
To learn more about your coverage requirements, talk to a local independent insurance agent.
How Much Does Workers' Compensation Insurance Cost in Richmond, KY?
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 job’s associated risks. Insurers use these rates as a starting point and can offer discounts and incentives of up to 25% based on your company’s safety record, claims history, and experience modification. That is why comparing quotes is beneficial.
The following are average rates paid per every $100,000 in employee payroll for three of the most common industries in Richmond, KY:
- Educational services: $290 a year
- Accommodation & food services: $1,230 a year
- Retail trade: $670 a year
A professor at Eastern Kentucky University is less likely to suffer a work-related injury than a prep cook at a diner, and workers’ compensation rates reflect this. For more dangerous jobs like truck driving and construction, rates are significantly higher.
Your business’s actual rates will depend on specific details about what your employees do. Talk to an independent insurance agent in Richmond to learn how much a workers’ compensation will cost for your business.
Richmond Workers’ Compensation Pays for Medical Treatment
If employees are injured at work or if they suffer an occupational illness due to exposure to toxins at the workplace, they are entitled to have their needed medical care covered in full.
Workers' compensation will cover the cost of medical treatment, follow-up visits, physical therapy, medications, prosthetic devices, and other expenses when they are necessary for your employee to heal.
This insurance can also provide reimbursement for miles driven to and from medical appointments and the pharmacy. Reasonable costs for taxi, bus, or ride-share services, tolls, and parking costs can also be reimbursed. Employs should keep detailed records and receipts for these expenses.
Richmond, KY Workers’ Compensation Insurance Provides Disability Coverage
Workers’ compensation also provides workers with disability benefits. Disability coverage is designed to replace lost wages if an employee requires more than one week off work to recuperate from a job-related injury or occupational illness.
Workers’ compensation disability insurance can provide injured employees with two-thirds 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 average weekly earnings during the year prior to the accident. This coverage can continue for 425 to 520 weeks, depending on the severity of the disability according to the employee’s impairment rating.
Richmond Workers' Compensation Covers Workplace Fatalities
It is a regrettable fact that workplace injuries are sometimes fatal. Workers’ compensation insurance can help ease the financial burden placed on the employee’s family members by providing them with death benefits, or survivor benefits.
Following a job-related fatality, workers’ compensation will provide the employee’s estate a lump-sum payment of about $70,000. 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 is based on the worker’s average weekly pay. The deceased employee's spouse is entitled to 50% of their previous average earnings. If there are also children in the household, the amount will be 4% for the employee’s spouse and an additional 15% for each dependent child.
What Workers’ Compensation Will Not Cover
Workers’ compensation claims are sometimes denied. This may happen if the insurance company’s claims adjuster believes that the injury did not actually occur on the job, if the injured worker is not an official employee of the company, or if there is reason to suspect the injury was intentionally self-inflicted or that the employee was under the influence of drugs or alcohol at the time.
Other reasons for a claims denial may be if an employee had 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, like an employee softball game.
If you feel that a workers’ compensation claim was unjustly denied, you can file an appeal by contacting the Kentucky Department of Workers’ Claims.
Why Work with an Independent Insurance Agent in Richmond, KY?
If you are looking for the best workers’ compensation policy to cover your Richmond employees, a local independent insurance agent can help.
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. That way, you can be sure you are getting appropriate coverage at the most affordable price.
Discover the many benefits of working with a local, independent insurance professional. Contact an insurance agent in or near Richmond to get started.
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