NEXT is Kentucky’s best workers' compensation insurance provider, scoring 98 out of 100. The company offers a great mix of reliable customer service, very low workers' comp rates and an extensive coverage selection. Pie and Thimble are strong runners-up that you should also consider.
Cheapest Workers' Comp Insurance in Kentucky
NEXT offers the best and cheapest workers' comp insurance in Kentucky, starting at $127 per month.
Discover affordable rates for your Kentucky business below.

Updated: June 20, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Pie, Thimble, biBerk and Nationwide are the best cheap workers' comp insurance providers in Kentucky.
Workers' compensation coverage costs an average of $718 per year or $63 per month for most small businesses in Kentucky.
Workers' comp insurance is required in Kentucky for all companies with employees to cover expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Kentucky
Next | 98 | $127 |
Pie | 92 | $145 |
Thimble | 91 | $188 |
biBERK | 88 | $290 |
Nationwide | 87 | $329 |
The Hartford | 87 | $353 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.

NEXT: Best Overall
pros
Cheapest rates in Kentucky overall
Great customer service ratings
Short quote times
cons
Not as affordable for those with over 50 employees
COMPANY HIGHLIGHTS
NEXT provides the cheapest and best business insurance for most businesses in Kentucky. The company earned a 4.7 out of 5 rating based on customer reviews and is recognized by CNBC as one of the top global digital insurers. However, NEXT primarily offers the best and most affordable experience for businesses with under 50 employees. If you are over this mark, you may find better coverage elsewhere.
Compare Small business Insurance Rates
Ensure you're getting the best rate for your small business insurance. Compare quotes from the top insurance companies.
How Much Is Workers' Comp Insurance in Kentucky?
Depending on the size of your business in Kentucky, workers' comp rates range from $718 to $7,244 per year. However, this only represents software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
Larger small businesses | $622 | $7,244 |
Businesses with five or less employees | $63 | $718 |
Medium-size small businesses | $148 | $1,716 |
Factors That Impact Workers’ Compensation Costs in Kentucky
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including business size, industry, location and claims history.
Payroll costs
A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims often increases premiums, while having a clean record can get you discounted rates.
Kentucky Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Kentucky
Below are the best steps to take to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research industry-specific costs and carriers to identify potential providers for quote comparison. Additionally, evaluate state-sponsored insurance programs and assess your eligibility for self-insurance options.
- 3
Consult similar businesses
Talk to other business owners in your field about their workers' comp experiences. Ask which insurers they use and whether they're happy with their coverage. Real-world feedback often reveals details you won't find in online reviews.
- 4
Compare multiple providers through different means
Obtain multiple quotes from various providers using different methods (online platforms or direct agent contact) for comprehensive price comparison and to make sure you find the most suitable coverage for your business needs.
Do You Need Workers’ Compensation Insurance in Kentucky?
Kentucky requires all employers with one or more employees to carry workers' compensation insurance, including corporate officers who are automatically covered. However, sole proprietors, partners and LLC members are exempt from mandatory coverage but may elect to be included. Corporate officers can decide to exclude themselves from coverage.
WORKERS’ COMP PENALTIES IN KENTUCKY
Kentucky businesses must provide workers' comp insurance. If they don't, they could face serious penalties, such as:
- Civil Penalties:
- $1,000 fine per employee for each day without mandated coverage
- Fines ranging from $100 to $1,000 per employee (each employee and each day constitutes a separate offense)
- Business Operations:
- Mandatory business closure until compliance with workers' compensation requirements
- Criminal Penalties:
- Fines, jail time or both
- Financial Liability:
- Full liability for employee medical expenses and lost wages if workplace injury occurs during non-compliance
- Required reimbursement to the Uninsured Employers' Fund for any benefits awarded to employees
What Does Workers’ Compensation Insurance Cover in Kentucky?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits and lost wages for affected workers, paying out 66% of weekly wages according to Kentucky law. This not only safeguards employees but also protects the business against potential legal claims associated with workplace injuries or illnesses.
Best Workers' Compensation Insurance Kentucky: Bottom Line
The top three best and affordable workers' comp insurance providers in Kentucky are NEXT, Pie and Thimble. While these companies are our recommendations, compare rates yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Kentucky: FAQ
Below are answers to frequently asked questions about Kentucky workers' comp insurance from our MoneyGeek experts:
Which company has the best workers’ compensation insurance in Kentucky?
NEXT offers the best workers’ compensation insurance in Kentucky, with competitive pricing (averaging $127 per month) and a low complaint index. However, selecting the best insurance for your needs will depend on various aspects, including your industry, the size of your workforce and specific state requirements.
Does Kentucky require businesses to have workers’ compensation insurance?
In Kentucky, businesses are mandated to carry workers' compensation insurance. However, sole proprietors, partners and corporate officers who fully own the company can choose to exempt themselves.
How much does workers’ compensation insurance cost in Kentucky?
In Kentucky, a medium-sized small business can expect to pay about $148 per month for workers’ compensation insurance.
How We Rated Workers' Comp Insurance Companies in Kentucky
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed June 3, 2025.
- NEXT. "NEXT Insurance Recognized as a Top Global Digital Insurer by CNBC." Accessed June 3, 2025.