Best Workers'CompensationKentuckyMoneyGeek 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'CompensationKentuckyBest Workers’ Compensation Insurance in Kentucky
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.
How was this MoneyGeek score calculated?
1
PieBest Overall in Kentucky
Score:92
- Cheapest monthly rate of $80
- Fastest online quote process
More About Pie
Pie has the most affordable workers’ compensation insurance in Kentucky, with policies costing an average of $80 per month. Pie also outshines its competitors in how swiftly it provides online quotes to its customers, taking only about 30 seconds to process requests. The insurer has an A- rating from AM Best, which is lower than most competitors but is still considered an excellent financial stability rating. However, the company received the lowest complaint score, indicating that customers are often dissatisfied with its customer service.
2
Thimble
Score:91
- Average rate of $106 per month
- Provides fast online quotes
- Strong financial stability score
More About Thimble
Thimble is our runner-up for the best workers’ compensation insurance provider in Kentucky, offering the second-cheapest rates in the state at $106 per month. Thimble has a financial stability rating of A from AM Best, indicating that it is able to meet its financial obligations to policyholders. The company's online quote tool is somewhat slower than other insurers' but still provides quotes in under two minutes, on average. Thimble has the second-highest complaint index according to NAIC data, meaning that it receives more customer complaints than average.
3
The Hartford
Score:91
- Average monthly premium of $174 per month
- Excellent customer satisfaction track record
- High financial stability rating from AM Best
- Efficient online quote process
More About The Hartford
The Hartford has the highest customer satisfaction rating in our comparison group, meaning that it receives the lowest number of complaints based on NAIC data. The insurer also has a strong financial stability rating of A+ from AM Best, making it a reliable option that businesses can trust to pay out claims. Based on our data, it takes only one minute and 17 seconds to obtain a quote online, which is convenient for prospective customers who are trying to get quotes from many providers. However, The Hartford has the second-most expensive rates in the state.
4
biBERK
Score:90
- Costs an average of $158 per month
- Exceptional financial stability rating
- High customer satisfaction score
- Fast quotes processing
More About biBERK
biBERK is a trusted option for small businesses looking for workers’ comp insurance in Kentucky with a perfect A++ financial strength rating from AM Best. With an online quote process that takes only 1 minute and 27 seconds on average, biBERK allows customers to obtain a cost estimate faster than some competitors. Policies cost about $158 per month, the third-most expensive rate among the six insurers in our comparison group. The company also received a high customer satisfaction score, indicating a strong commitment to customer service.
5
Nationwide
Score:89
- Average monthly rate of $145
- Financially stable
- Great customer satisfaction rating
More About Nationwide
Kentucky businesses in need of workers’ compensation insurance can trust that Nationwide will be able to fulfill its financial obligations, including payment of claims — the company earned a high financial strength rating of A+ from AM Best. Nationwide’s average monthly cost of $145 is the third-lowest among the insurers we evaluated. Nationwide provides great customer service to policyholders, as indicated by its high customer satisfaction score. When it comes to getting an online quote, the insurer's process is rather slow, taking over three minutes to process requests.
6
Next
Score:88
- Average cost of $184 per month
- Strong customer satisfaction score
- Fast online quote process
More About Next
Next stands out for having a lower rate of customer complaints than most of the companies we analyzed in Kentucky, suggesting that customers are generally satisfied with its services. However, it has the highest average monthly cost at $184 per month. Among the insurers in our comparison group, Next has one of the lowest AM Best ratings of A-. For those looking to get a quick online quote, the insurer provides quotes in about one minute and a half.
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.
Pie
Pie offers the most affordable workers' comp coverage to businesses with 20 employees in Kentucky. It also has the fastest online quote process, making it easy for small businesses to get an idea of their costs. However, apart from cost, various other factors play an important role in determining a good insurance provider, including customer satisfaction and financial stability. Pie’s AM Best rating of A- is lower than that of competitors and indicates that the company is less likely to be able to fulfill its financial obligations.
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.
Pie
Pie’s competitive average premium of $34 per month makes it our top pick for micro businesses in Kentucky looking for workers' comp insurance. Potential customers can also obtain quotes from the company website in less than a minute, which is helpful for those who want to efficiently compare insurance quotes. However, Pie receives significantly more customer complaints than average based on data from the NAIC, which micro business owners should keep in mind when selecting a provider.
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.
Thimble
Thimble provides the best overall coverage for midsize businesses in Kentucky due to its affordable premiums — the second-cheapest in the state — and solid financial stability score. Businesses with a higher employee count are more likely to have an employee file a claim, so finding a reliable insurer is particularly important. Thimble has an A rating from AM Best, indicating that it is able to pay out claims efficiently. However, Thimble has a low complaint score, meaning it receives a relatively high number of customer complaints.
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.
How was this cost calculated?
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.
Payroll costs
Businesses typically pay a set rate, called a premium index rate, for each $100 of payroll. Companies with high payroll amounts will therefore pay higher premiums for coverage compared to those with lower payroll costs. In Kentucky, the average index rate in 2022 was $0.83 per $100 of payroll — one of the lowest rates in the country.
Number of employees
Insurers charge premiums based partly on a business's employee count. Typically, businesses with a large workforce pay higher premiums due to an increased risk of workplace injuries and illnesses.
Employee class code
Insurers use class codes to determine the rate each business pays for every $100 of payroll. A class code represents the type of work carried out by employees. For instance, businesses in high-risk industries like construction have higher rates due to the risks involved in the workplace. Meanwhile, businesses in low-risk sectors like consulting have lower premiums.
Previous claims
Premiums are usually higher for businesses with a track record of workers' compensation claims as they are considered more likely to file a claim in the future.
In Kentucky, the number of nonfatal occupational injuries and illnesses for 2021 was 38,600, while the U.S. Bureau of Labor Statistics reported over 2.6 million total recordable nonfatal cases for private industry in the same year.
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.
WORKERS’ COMP PENALTIES IN KENTUCKY
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.
About Melissa Wylie
sources
- Ky.gov. "Frequently Asked Questions." Accessed May 29, 2023.
- Ky.gov. "Responsibilities of the Employee." Accessed May 29, 2023.
- Oregon Department of Consumer and Business Services. "Workers' Compensation Premium Index Rates." Accessed May 29, 2023.
- U.S. Bureau Of Labor Statistics. "IIF Latest Numbers." Accessed May 29, 2023.
- U.S. Bureau Of Labor Statistics. "State Occupational Injuries, Illnesses, and Fatalities." Accessed May 29, 2023.