Kentucky Workers Comp Insurance

With limited exceptions, every employer in Kentucky with one or more employee(s) is required by law to have a valid workers' compensation policy at all times. This "no fault" insurance not only provides injured workers with medical care and partial wage replacement, but also protects the policyholders from potentially damaging lawsuits. Although most companies in KY purchase a traditional commercial insurance policy, there are alternative methods of coverage which include licensing as a self insurer, gaining membership in a self insurance group, or obtaining coverage in the Assigned Risk Pool.

KY Workers Comp Insurance Specific Regulations

• Businesses that have any employees working in Kentucky must have insurance
• If you work for someone else you will not be covered by their insurance policy unless you are an employee. This requires independent contractors to have their own workman’s compensation insurance
• Kentucky offers a private insurance market, an assigned risk pool to help those struggling to secure insurance, and also a state fund called the Kentucky Employers’ Mutual Insurance Authority to compete with the private insurance market
• In Kentucky a sole proprietor or a partner is excluded from coverage, but have the option to opt in
• Corporate officers are included in coverage, but have the option to opt out
• Members of LLCs in Kentucky are excluded from coverage, but those members who participate in decision making and profits and losses may opt in