Jump ahead to learn:
- Is Workers’ Compensation insurance required in Kansas for my business?
- How does Kansas Workers’ Compensation insurance work?
- What could KS Workers’ Comp coverage include?
- Workers’ Comp exemptions in Kansas: Who qualifies?
- How much does Workers’ Comp insurance in Kansas cost?
- How ERGO NEXT can help Kansas small business owners
Is Workers’ Compensation insurance required in Kansas for my business?
Workers’ compensation insurance in Kansas is required for most non-agricultural businesses with a gross annual payroll of more than $20,000 — and that threshold is based on total payroll, not the number of employees you have. This is one of the things that makes Kansas different from most other states. Under Kansas law, if your business pays out more than $20,000 in wages across the year, you need coverage regardless of whether that’s one full-time employee or several part-time workers.
All payroll counts — wages paid both inside and outside of Kansas are included in that $20,000 calculation. The exception: non-corporate employers can exclude wages paid to immediate family members. Corporate employers, however, must count all wages paid to all employees, including family members, according to the Kansas Department of Labor.
One practical implication: you need to keep an eye on your payroll throughout the year. If you start below the $20,000 threshold but your business grows and you cross it mid-year, you’re required to get coverage at that point — not at year’s end.
Some clients will ask you for proof of workers’ comp coverage before signing a contract. ERGO NEXT lets you generate unlimited certificates of insurance at no extra cost, directly from your account.
How does Kansas Workers’ Compensation insurance work?
When a work-related injury or illness happens, workers’ comp in Kansas provides a structured process for getting your employee the care and benefits they need — while helping to protect your business from most personal injury lawsuits related to that incident.
Here’s how the process works, per the Kansas Department of Labor:
- Report the injury. Your employee should notify you of a work-related injury as soon as possible, and no later than 30 calendar days from the date of the accident — or within 20 days of their last day of work if they’ve already left the job. Failing to notify you on time can result in the claim being denied.
- File an accident report. As the employer, you’re required to report the accident to the Kansas Department of Labor’s Division of Workers’ Compensation within 28 days, if the injury keeps the employee from working for more than the remainder of that day, shift or turn.
- Provide written information to your employee. Once you’re notified of the injury, you’re required to give your employee written information about the benefits available under the Workers’ Compensation Act, how to file a claim, who to contact about the claim, and what assistance is available.
- The insurer reviews the claim. Your workers’ comp insurance carrier reviews the claim and determines what benefits apply based on the nature and severity of the injury. Kansas is a no-fault state, so benefits can generally be paid regardless of who caused the accident.
- Benefits are paid. If the claim is approved, the insurer coordinates payment for authorized medical treatment — which can include doctor’s visits, hospitalization, surgery, physical therapy, prescriptions and mileage reimbursement for travel to appointments — as well as a portion of lost wages if your employee can’t work.
- The employee returns to work or receives ongoing benefits. Once medically cleared, your employee can return to their role. If the injury results in a permanent impairment or prevents them from returning to work, ongoing disability or vocational retraining benefits may apply.
Kansas workers’ comp also operates under an exclusive remedy rule: when your employee receives workers’ comp benefits, they generally waive the right to sue you directly for negligence related to that injury. It’s a key legal protection for your business.
For example, say you run a plumbing business in Wichita. While working under a sink, one of your employees wrenches their back and is out for several weeks. Workers’ compensation could help pay for the diagnosis, physical therapy and lost wages while your employee recovers — up to the policy limits.**
What could KS Workers’ Comp coverage include?
Workers’ comp can help pay for expenses related to work-related injuries or illnesses for your employees — and optionally for you as a business owner.
If one of your employees is injured on the job, a Kansas workers’ comp policy can help pay for:
- Emergency treatment and medical care
- Lost wages (income benefits)
- Death and survivor benefits
- Vocational retraining if they can no longer do their job
- Permanent injury or disability benefits
Workers’ compensation doesn’t cover incidents that aren’t job-related, or situations involving employee misconduct, violations of company policy, or impairment from drugs or alcohol
Workers’ Comp income benefits in Kansas
Kansas workers’ comp income benefits depend on the nature and severity of the injury. There’s a one-week waiting period before benefits begin — though if the disability lasts three consecutive weeks, that first week is reimbursed. Here’s how each type works:
- Temporary total disability (TTD): Employee can’t work at all while recovering; receives 66.67% of their average weekly wage, up to a maximum set by the Department of Labor.
- Temporary partial disability (TPD): Employee returns to work at reduced pay; receives 66.67% of the difference between their pre-injury and current wages, subject to the TTD maximum.
- Permanent partial disability (PPD scheduled): Employee has complete or partial loss of use of a specific body part; benefits are based on a scheduled number of weeks for that body part and a percentage of disability, up to the state maximum.
- Permanent partial disability (PPD general): Employee has a lasting impairment not covered by the scheduled list; benefits are calculated based on wage loss, up to the maximum.
- Permanent total disability (PTD): Employee is permanently unable to obtain any substantial, gainful employment; receives ongoing weekly benefits at the state maximum rate.
Workers’ Comp death benefits in Kansas
If a covered employee dies from a work-related injury, Kansas death benefits provides structured financial support for surviving dependents:
- There’s an immediate initial payment to the surviving legal spouse and/or wholly dependent children, apportioned 50% to the spouse and 50% to dependent children.
- Ongoing weekly death benefits are paid at 66.67% of the deceased employee’s average weekly wage, subject to the state maximum, for the life of a surviving spouse.
- Dependent children receive benefits until age 18 (or 23 if enrolled full-time in an accredited institution).
- Funeral and burial expenses are covered up to $10,000.
- If there are no dependents, a lump-sum is payable to the employee’s estate.
Workers’ Comp exemptions in Kansas: Who qualifies?
Kansas workers’ comp exemptions are based on the type of business and the type of worker — not just business structure. Here’s who may qualify:
- Businesses with $20,000 or less in gross annual payroll (outside agriculture). They’re generally not required to carry coverage, as long as the employer reasonably estimates the current calendar year’s payroll will stay at or below that threshold.
- Sole proprietors, LLC members and partners. Not automatically covered as employees.
- Corporate officers. If they own at least 10% of the company’s stock , they may opt to exempt themselves from coverage by filing through KDOL. Officers who own less than 10% must be covered as regular employees.
- Agricultural employers. Businesses with payroll under $20,000 (excluding wages to immediate family members for non-corporate employers) are generally exempt. Kansas is one of the states with broader agricultural exemptions than many others.
- Firefighters. Applies to members of a firemen’s relief association that has formally elected to waive coverage.
- Qualified real estate agents.
- Owner-operator vehicle drivers. Applies if they’re covered by an occupational accident insurance policy meeting the state’s standards.
Employers can also choose to self-insure instead of purchasing a policy, but only if they can demonstrate the financial ability to pay claims. A private company must have been in continuous operation for at least five years and meet additional financial thresholds to qualify.
Learn more about workers’ comp exemptions.
How much does Workers’ Comp insurance in Kansas cost?
Workers’ comp insurance costs in Kansas vary across industries and businesses. Some factors that influence what you’ll pay for workers’ comp include:
- Your number of employees.
- The type of work your employees do and their assigned class codes.
- Your total payroll.
- Your insurance claims history and workplace safety record.
- The locations in Kansas where your employees work.
The best way to find out what coverage will cost for your specific business is to get a free instant quote from ERGO NEXT.
