Workers’ compensation insurance is required for all Kentucky employers with one or more employees, according to the Kentucky Education and Labor Cabinet. In this state, executive officers of corporations are also considered to be employees.
In KY, workers’ comp helps business owners and employees. It can protect employers against some unexpected costs and help cover expenses for injured workers. Some of the key benefits provided by workers’ compensation insurance include:
Workers’ compensation insurance provides coverage for expenses related to injuries that occur on the job, such as:
Kentucky policies generally cover the following income benefits tied to workers’ comp:
Temporary total disability: These benefits are paid to an employee whose physician states that they are unable to return to some type of work for more than seven calendar days.
Permanent partial disability: This type of income benefit may be paid to employees who, despite reaching maximum medical improvement, still have a permanent impairment that affects their potential wage earning capacity.
Permanent total disability: These benefits are reserved for employees whose injuries result in a complete and permanent inability to perform any type of work.
Death benefits are also available if an employee dies within four years of the date of injury and as a direct result of the injury. This includes a lump sum payment to the employee’s estate for covering burial expenses as well as income benefits for a surviving spouse and certain dependents.
Employers who must have insurance according to KY workers’ comp laws are also required to post a notice in a conspicuous location in the workplace. This notice informs employees of their rights, provides directions on how to obtain assistance and includes specific details about the employer’s insurance carrier.
Under certain conditions, a Kentucky workers’ compensation insurance policy will provide coverage for work injuries that occur outside the state. Generally, if the workers’ employment is primarily located within Kentucky, but they occasionally travel for specific work purposes, the same coverage will apply.
Business owners with employees who regularly work out of state should check with their insurance carrier to verify whether coverage extends to employees while outside Kentucky.
Workers’ compensation costs vary across industries. Factors that influence price include:
The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.
Employers who fail to obtain the required workers’ compensation insurance coverage are subject to a fine of $100 to $1,000 per employee. These fines can add up quickly since each employee and each day of non-compliance constitutes a separate offense.
If an employee gets injured on the job while the employer does not have coverage, the employer can also be held liable for benefits the worker would otherwise receive through workers’ comp, including medical expenses and lost wages.
Some employees are considered exempt from Kentucky’s workers’ comp requirement. These employees include:
Employees in Kentucky also have the option to willingly sign forms that forfeit their rights to workers’ compensation benefits. For example, a corporate officer may choose to reject their coverage.
Kentucky workers’ compensation laws state that business owners may elect to be included as employees. These types of business owners include:
Regardless of whether they choose to extend workers’ comp coverage for themselves, business owners are still required to have coverage for employees.
Kentucky employers may be eligible to self-insure their company for workers’ compensation rather than obtaining an insurance policy. The application requirements for becoming self-insured include:
NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.
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General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.
In Kentucky, all business-owned vehicles must be covered by commercial auto insurance. If you drive or use your personal vehicle for work, commercial auto insurance helps protect your business from accidents.
Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.
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