Best Workers' Compensation Insurance in Kentucky (2024)

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.

Key Takeaways

Based on MoneyGeek's review of workers' compensation insurance companies in Kentucky, Pie Insurance emerges as the best overall provider. Here’s a detailed breakdown of their performance:

Pie Insurance
- Ranking: Best Overall Insurer for Businesses with 20 Employees
- Average Monthly Premium: $80
- Financial Stability: Pie is recognized for its strong financial footing, reassuring businesses of its ability to meet claims and support employers through financial commitments.
- Customer Service: Pie stands out with a MoneyGeek score of 92 out of 100, indicating high customer satisfaction. Additionally, Pie is praised for its user-friendly and efficient online quote process, which simplifies obtaining coverage for business owners.
- Insurance Policies: Pie's workers' compensation insurance covers businesses across various sizes, offering affordability especially notable for small to micro businesses.

Details for Micro and Midsize Businesses
- Micro Businesses (1-9 Employees): For businesses with 5 employees and $312,500 annual payroll, Pie offers policies at an average rate of $34 per month or $402 annually.
- Midsize Businesses (100 Employees): Though not the cheapest for larger businesses, Pie still offers competitive services with Thimble being an alternative, for businesses with $6,250,000 in payroll costing an average of $398 monthly.

Kentucky law mandates that businesses with at least one employee have workers' comp insurance. Pie provides an excellent option for businesses that wish to manage expenses efficiently while maintaining compliance with state regulations. While the monthly premium can vary based on specific business factors like payroll costs and employee count, Pie's offerings are particularly beneficial for businesses seeking affordable and reliable coverage in Kentucky.

In Kentucky, the cheapest workers' compensation insurance provider is Pie, with an average monthly premium of $80. This cost is based on a typical business setup with 20 employees and an annual payroll of $1,250,000. For micro-businesses with five employees, Pie also stands as a cost-effective choice, offering an even lower average monthly premium of $34.

Pie is an excellent option for cost-conscious businesses due to its emphasis on affordability and an efficient online quote process. This combination not only simplifies the task of obtaining necessary coverage but also ensures that businesses are protected without overspending on premiums. By providing competitive rates, Pie helps businesses maintain compliance with Kentucky's mandatory workers' compensation laws while allocating resources efficiently in other areas of operation.

Workers' compensation insurance premiums in Kentucky, like in other states, are influenced by various factors. Understanding these factors can help businesses find cost-effective coverage that meets legal requirements and protects both employers and employees. Here’s an overview of the key factors that impact workers' compensation insurance premiums in Kentucky:

1. Payroll Costs: Payroll is a significant determinant of workers' compensation premiums. Insurance costs are generally calculated as a rate per $100 of payroll. Higher payrolls typically lead to higher premiums due to the increased liability.

2. Employee Count: The number of employees influences the overall premium. As the employee count increases, so does the potential risk, which can lead to higher insurance costs.

3. Employee Class Codes: Different job roles carry varying levels of risk. Each role is categorized by an employee class code that reflects its risk level. Jobs with higher risks, such as construction work, typically have higher premiums compared to lower-risk jobs.

4. Claims History: A company with a history of frequent or severe claims may face higher premiums, as insurers view them as higher risk. Maintaining a safe workplace and reducing the number of claims can help manage insurance costs.

5. Industry Type: The nature of the business plays a role in determining premiums. Some industries are inherently riskier than others and may incur higher insurance rates.

6. Coverage Limits: The limits of the policy, such as the total policy limit, per accident limit, and per employee limit, also affect premiums. Higher coverage limits generally result in higher costs.

7. Legal Requirements and Exemptions: Kentucky law requires businesses with at least one employee to carry workers' compensation insurance, although certain individuals and situations are exempt. Complying with state regulations is crucial for determining whether a company needs insurance and at what level.

The review by MoneyGeek highlighted Pie as the best overall workers' compensation insurer in Kentucky based on factors like customer satisfaction, affordability, financial stability, and an efficient online quote process. Pie stood out for its affordability, costing about $80 per month for businesses with 20 employees and an annual payroll cost of $1,250,000. It's noted as particularly cost-effective for micro businesses as well, with average rates at $34 per month for five employees.

While payroll generally has a more significant impact on premiums than the number of employees, both factors are essential in determining costs. For instance, medium-sized businesses with 100 employees can find affordable insurance through Thimble, which offers policies at an average monthly cost of $398.

Ultimately, understanding these factors and how they interplay can help businesses in Kentucky effectively manage their workers' compensation insurance costs while ensuring compliance with state laws.

Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Kentucky.

Coverage costs and company information for workers' compensation insurance providers in Kentucky were last updated in 2023.

677Quotes Analyzed

6Companies Compared

50ZIP Codes

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?

MoneyGeek used the following weights to score and rank insurers:

Affordability: 45%
Customer satisfaction: 25%
Financial stability: 20%
Online quote process: 10%

MoneyGeek used the following business profile to gather quotes:

An LLC with five years in the software development industry, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs.

PieBest Overall in Kentucky

Score:92

5/5

Affordability

1/5

Customer Satisfaction

2/5

Financial Stability

5/5

Online Quote Process

Geek Quick Take

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.

Thimble

Score:91

3.7/5

Affordability

2/5

Customer Satisfaction

3/5

Financial Stability

4/5

Online Quote Process

Geek Quick Take

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.

The Hartford

Score:91

biBERK

Score:90

Nationwide

Score:89

Score:88

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 Top Pick

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.


Pie	$80	$952
Thimble	$106	$1,157
Nationwide	$145	$1,734
biBERK	$158	$1,669
The Hartford	$174	$2,083
Next	$184	$2,209

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.

MoneyGeek Top Pick

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.

MoneyGeek Top Pick

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?

To find the average cost of workers’ compensation insurance in Arkansas, we gathered quotes for three types of software development businesses:

An LLC with five years in business, five employees, $1,250,000 in annual revenue and $312,500 in annual payroll costs.
An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs.
An LLC with five years in business, 100 employees, $25 million in annual revenue and $6,250,000 in annual payroll costs.


5	$60	$684
20	$141	$1,634
100	$592	$6,899

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.

Which company has the best workers’ compensation insurance in Kentucky?

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.

Which company has the cheapest workers’ compensation insurance in Kentucky?

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.

Does Kentucky require businesses to have workers’ compensation insurance?

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.

How much does workers’ compensation insurance cost in Kentucky?

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

Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.

Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

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sources

Oregon Department of Consumer and Business Services. "Workers' Compensation Premium Index Rates." Accessed December 19, 2024.
U.S. Bureau Of Labor Statistics. "IIF Latest Numbers." Accessed December 19, 2024.
U.S. Bureau Of Labor Statistics. "State Occupational Injuries, Illnesses, and Fatalities." Accessed December 19, 2024.