Is workers comp required in Kentucky?
Kentucky generally requires employers with one or more employees to carry coverage. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Kentucky
Coverage in Kentucky is sold by private insurers. Every state also has a market of last resort, so even higher-risk or brand-new businesses can generally find a policy.
Who sets the rules
The Kentucky Department of Workers' Claims oversees workers comp in Kentucky. In Kentucky, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Kentucky employers should know
- Kentucky has a state-created carrier that writes alongside private insurers, so most businesses can find a market.
- Coal, manufacturing and horse farm operations each carry distinct class codes and safety considerations.
How premiums are calculated
Your Kentucky premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for Kentucky employers
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Kentucky workers comp FAQ
Is workers comp required in Kentucky?
Kentucky generally requires employers with one or more employees to carry coverage. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Kentucky?
The Kentucky Department of Workers' Claims administers the workers compensation system in Kentucky.
Can I buy Kentucky workers comp from a private insurer?
Yes. Private insurers write workers comp in Kentucky, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Kentucky?
In Kentucky, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. Your Kentucky premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll.