MoneyGeek reviewed workers' compensation insurance companies in Kentucky based on customer satisfaction, affordability, financial stability and the online quote process. Pie outshines other insurers as our top choice, standing out for its affordability and efficient online quote process.

All businesses in Kentucky with at least one employee are required to have workers' compensation insurance to cover workplace liabilities. The coverage pays for lost income, medical bills and legal fees resulting from work-related illnesses and injuries, protecting both the employer and employee from unplanned expenses.


Best Workers’ Compensation Insurance in Kentucky

Based on MoneyGeek's analysis of workers' comp insurance companies in Kentucky, Pie is the best overall insurer for businesses with 20 employees. The insurer earned a MoneyGeek score of 92 out of 100, and its workers' compensation insurance policies cost an average of $80 per month.


Cheapest Workers’ Compensation Insurance in Kentucky

Based on our research, the most affordable workers’ compensation insurance provider in Kentucky is Pie. Its policies cost about $80 per month. This company is cheapest for businesses with 20 employees and an annual payroll cost of $1,250,000. Your rates will vary based on your employee count and payroll costs.


MoneyGeek ranked companies based on their average monthly premiums to determine the cheapest option in Kentucky. Your rates may vary depending on various factors.

The following table shows the average monthly and annual costs of all the insurance companies we evaluated in Kentucky. The rates apply to businesses with 20 employees.


Best Workers’ Compensation Insurance for Micro Businesses in Kentucky

Pie is the best insurer for micro businesses in Kentucky with five employees, charging an average rate $34 per month or $402 annually. This premium is also based on annual payroll costs of $312,500.

Typically, companies with between one and nine employees are considered micro businesses. The number of people a business employs will affect the cost of workers' comp insurance, the annual payroll amount usually has more impact on premiums.


Best Workers’ Compensation Insurance for Midsize Businesses in Kentucky

Midsize businesses in Kentucky with 100 employees and an annual payroll amount of $6,250,000 can find the best workers’ compensation insurance from Thimble. The company has an average monthly cost of $398.

Although workers’ compensation insurance premiums vary based on the number of employees, payroll generally has a bigger impact on rates.


How Much Is Workers’ Compensation Insurance in Kentucky?

The average monthly premium for workers' compensation insurance in Kentucky for businesses with 20 employees is $141, which is $27 less than the nationwide average of $168.

To determine average rates for this study, we set the following sample policy limits:

  • $1 million total policy limit
  • $1 million per accident limit
  • $1 million per employee limit

The total policy limit refers to the highest amount the insurer will cover for the entire policy period. The per accident limit is the maximum amount the insurer will pay for a single accident, while the per employee limit is the maximum amount the insurance policy will cover for each employee.

The following table shows the average cost of workers' compensation insurance in Kentucky for businesses with five, 20 and 100 employees. These figures may vary depending on your business's payroll amount and employee count.


Factors That Impact Workers’ Compensation Costs in Kentucky

The amount your business will pay for workers' compensation insurance in Kentucky depends on several factors. Understanding how payroll costs, employee count, employee class code, claims history and other factors influence your premiums can help businesses manage their coverage effectively.


Do You Need Workers’ Compensation Insurance in Kentucky?

Kentucky law requires businesses with at least one employee to carry workers' comp insurance. Certain individuals are exempt from the requirement, including domestic workers with fewer than two employees, agricultural workers, members of certain religious organizations, workers offering services in return for aid from a charitable organization and maintenance people employed to work in a private home for under 20 days.

Business owners, including sole proprietors, can elect not to include themselves in a policy, but they must cover any people they employ. In addition, employees have the option to submit a request to waive their workers' comp coverage, which allows them to maintain the right to sue their employer in the event of a workplace injury.

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Business owners in Kentucky who do not have workers' comp insurance may face consequences, including the following:

  • A fine of $100 to $1,000 per employee per day without coverage.
  • If an employee is injured and receives benefits from the Uninsured Employers’ Fund, the employer is responsible for reimbursing the money.
  • Employers may be sued for damages by employees in civil court.

What Does Workers’ Compensation Insurance Cover in Kentucky?

Workers' compensation insurance in Kentucky benefits both employers and their workers. In case of a work-related illness or injury, the insurance provider covers the necessary medical expenses and compensates lost income for employees who cannot work due to the injury or illness. Workers’ compensation insurance may also cover rehabilitation costs and survivor benefits for employees who pass away after a work-related incident.

In addition, the coverage protects employers from having to cover medical costs, lost wages and other expenses out of pocket and limits employees' ability to sue them for damages.

Workers’ Compensation Insurance Resources for Employees in Kentucky

The Kentucky Labor Cabinet's Department of Workers’ Claims oversees workers' compensation in the state, which includes ensuring that businesses comply with the workers' compensation requirements. Employees in Kentucky can obtain helpful information from the department about their coverage and how to file claims and appeal denied claims.

If an employee is injured or falls ill on the job, they must report it to their supervisor as soon as possible. The employer is then responsible for filing a claim with their insurance provider within three days. If the employee sustains a permanent disability, they can resolve their claim through an agreement with the employer, which will be approved by an administrative law judge. If an agreement cannot be reached, the employee may file an Application for Resolution of a Claim to have the matter resolved by a judge.

Frequently Asked Questions About Workers’ Compensation Insurance in Kentucky

MoneyGeek answered some commonly asked questions regarding workers' compensation insurance in Kentucky to help you find the best option for you.

Pie outshines its competitors as the best workers’ compensation provider in Kentucky because of its affordable coverage rates and efficient online quote tool. However, the best option for your business will depend on various factors, such as workforce size, industry and annual payroll cost.

With an average monthly cost of $80, Pie is also the most affordable workers' comp insurance company in Kentucky. However, the cheapest option for any given business depends on factors such as the business location, employee count and annual payroll cost.

Yes. Kentucky law requires businesses with one or more employees to have workers' compensation insurance. Other employers will need to consult the Department of Workers’ Claims to determine if they are exempt from purchasing the insurance.

For Kentucky businesses with 20 employees, the average monthly cost of workers' compensation insurance is $141, slightly below the national average of $168.

About Melissa Wylie

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Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.