Workers' comp rates in Kentucky depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Kentucky
With rates starting at $5 monthly, ERGO NEXT, The Hartford and Simply Business offer the cheapest and best workers' comp insurance in Kentucky.
Get matched to top Kentucky workers’ comp insurance providers and find your ideal coverage.
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Updated: January 22, 2026
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Best Kentucky Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Kentucky?
ERGO NEXT offers the top cheap workers' compensation insurance in Kentucky. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- ERGO NEXT: $64
- The Hartford: $66
- Simply Business: $66
- Coverdash: $68
- biBerk: $70
Is workers' comp insurance required in Kentucky?
Kentucky mandates workers' compensation insurance for businesses with one or more employees, including part-time and seasonal workers. Sole proprietors without employees are exempt, as are independent contractors meeting specific criteria. Employers who fail to carry required coverage face fines up to $1,000 per day plus potential criminal charges and civil liability.
How much does workers' comp insurance cost in Kentucky?
Workers' compensation insurance costs in Kentucky run $34 monthly per employee for a two-person business. Rates vary based on your industry and payroll size. Low-risk businesses like speech therapy pay around $3 per employee monthly, while high-risk roofing operations face costs near $390 monthly per employee.
How do you get workers' comp insurance in Kentucky?
You can get workers' comp coverage in Kentucky by:
- Purchasing coverage from licensed private insurance companies operating in the state
- Buying through the assigned risk pool when standard market options aren't available
- Qualifying for self-insurance status if your business meets Kentucky's strict financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Kentucky workers' comp insurance cover?
Workers' compensation in Kentucky covers:
- Complete medical expenses for work-related injuries and occupational illnesses
- Wage replacement benefits during recovery periods from temporary disabilities
- Permanent partial disability payments for lasting impairments affecting earning capacity
- Survivor benefits for families when workplace fatalities occur
Best Workers' Comp Insurance Companies in Kentucky
ERGO NEXT leads Kentucky's workers' comp market with top-rated customer support and extensive coverage options. The Hartford and Simply Business also provide excellent choices for small business owners seeking reliable financial protection in the state.
| ERGO NEXT | 4.60 | $64 | 1 | 2 |
| The Hartford | 4.59 | $66 | 2 | 3 |
| Simply Business | 4.52 | $66 | 5 | 1 |
| Coverdash | 4.45 | $68 | 6 | 2 |
| biBERK | 4.43 | $70 | 2 | 5 |
| Nationwide | 4.42 | $75 | 2 | 4 |
| Progressive Commercial | 4.40 | $66 | 7 | 5 |
| Hiscox | 4.37 | $67 | 4 | 6 |
| Thimble | 4.35 | $66 | 8 | 5 |
| Chubb | 4.25 | $79 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Kentucky
Select your industry and state to get a customized Kentucky workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN KENTUCKY
Explore the best business insurance providers in Kentucky through our guides:
Best Kentucky Workers’ Comp Insurance Company Reviews
Kentucky has a number of workers' comp insurers, but these companies rank highest for their coverage options, affordability and customer service.
ERGO NEXT
Best Workers' Comp Insurance in Kentucky
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$64Based on average costs across multiple business typesWorkers' Comp Digital Experience Score
4.8/5 (1st)Rating based on customer satisfaction with claims handlingWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend ERGO NEXT
The Hartford
Best Kentucky Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.6/ 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$66We analyzed thousands of workers' compensation quotes from insurers operating in Kentucky across 79 industriesWorkers' Comp Claims Process Score
4.5/5 (1st)Rating from independent customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of customers who would recommend The Hartford
Cheapest Workers' Comp Insurance Companies in Kentucky
ERGO NEXT offers Kentucky's most affordable workers' comp insurance at just $64 per month ($771 annually), saving you $5 each month compared to the state average of $69 per month. Thimble follows as the second most affordable option at $66 per month, while The Hartford rounds out the top three at $66 monthly. The table below shows costs from all companies we analyzed.
| ERGO NEXT | $64 | $771 |
| Thimble | $66 | $788 |
| The Hartford | $66 | $793 |
| Progressive Commercial | $66 | $795 |
| Simply Business | $66 | $796 |
| Hiscox | $67 | $801 |
| Coverdash | $68 | $815 |
| biBERK | $70 | $838 |
| Nationwide | $75 | $902 |
| Chubb | $79 | $948 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Kentucky by Industry
ERGO NEXT delivers the most affordable workers' comp for welding at $102 monthly ($1,219 annually). ERGO NEXT dominates 47 industries, excelling in automotive, bakery and wedding planning sectors. Thimble ranks second for affordability, leading 10 industries including veterinary, wholesale and window cleaning businesses.
| Automotive | ERGO NEXT | $99 | $1,187 |
| Accountants | Progressive Commercial | $18 | $214 |
| Ad Agency | The Hartford | $14 | $165 |
| Auto Repair | ERGO NEXT | $132 | $1,582 |
| Bakery | ERGO NEXT | $46 | $555 |
| Barber | ERGO NEXT | $12 | $146 |
| Bounce House | The Hartford | $35 | $423 |
| Beauty Salon | Simply Business | $13 | $155 |
| Cannabis | Nationwide | $84 | $1,011 |
| Candle | ERGO NEXT | $34 | $413 |
| Cleaning | ERGO NEXT | $42 | $500 |
| Catering | Simply Business | $65 | $780 |
| Consulting | Simply Business | $26 | $310 |
| Coffee Shop | ERGO NEXT | $40 | $485 |
| Computer Programming | ERGO NEXT | $24 | $288 |
| Computer Repair | The Hartford | $21 | $247 |
| Construction | Progressive Commercial | $160 | $1,914 |
| Contractor | ERGO NEXT | $144 | $1,722 |
| Daycare | Progressive Commercial | $11 | $137 |
| Courier | Thimble | $195 | $2,335 |
| Dental | ERGO NEXT | $10 | $114 |
| Dog Grooming | Thimble | $55 | $661 |
| DJ | ERGO NEXT | $12 | $146 |
| Electrical | ERGO NEXT | $49 | $588 |
| Drone | ERGO NEXT | $23 | $280 |
| Ecommerce | ERGO NEXT | $19 | $224 |
| Excavation | ERGO NEXT | $92 | $1,099 |
| Engineering | ERGO NEXT | $33 | $397 |
| Florist | ERGO NEXT | $51 | $618 |
| Food Truck | Thimble | $39 | $463 |
| Food | ERGO NEXT | $36 | $436 |
| Gardening | Simply Business | $41 | $489 |
| Funeral Home | ERGO NEXT | $23 | $280 |
| Home-based | ERGO NEXT | $9 | $102 |
| Handyman | The Hartford | $84 | $1,006 |
| HVAC | ERGO NEXT | $53 | $633 |
| Hospitality | ERGO NEXT | $60 | $725 |
| Jewelry | Simply Business | $26 | $313 |
| Janitorial | ERGO NEXT | $42 | $503 |
| Lawn/Landscaping | Progressive Commercial | $32 | $388 |
| Junk Removal | ERGO NEXT | $124 | $1,484 |
| Manufacturing | Thimble | $51 | $606 |
| Lawyers | Simply Business | $46 | $553 |
| Massage | ERGO NEXT | $13 | $153 |
| Marine | Thimble | $130 | $1,565 |
| Moving | ERGO NEXT | $221 | $2,653 |
| Mortgage Broker | Progressive Commercial | $12 | $145 |
| Mortgage Broker | ERGO NEXT | $12 | $145 |
| Painting | Thimble | $121 | $1,454 |
| Nonprofit | ERGO NEXT | $27 | $329 |
| Personal Training | ERGO NEXT | $21 | $258 |
| Party Rental | Thimble | $33 | $392 |
| Pest Control | Simply Business | $62 | $740 |
| Photography | Thimble | $15 | $180 |
| Pet | Progressive Commercial | $26 | $316 |
| Pharmacy | ERGO NEXT | $5 | $65 |
| Plumbing | ERGO NEXT | $55 | $662 |
| Physical Therapy | Thimble | $6 | $71 |
| Real Estate | The Hartford | $26 | $314 |
| Pressure Washing | Nationwide | $85 | $1,017 |
| Restaurant | ERGO NEXT | $55 | $655 |
| Roofing | Nationwide | $842 | $10,102 |
| Retail | ERGO NEXT | $30 | $363 |
| Snack Bars | Thimble | $37 | $446 |
| Security | ERGO NEXT | $45 | $538 |
| Speech Therapist | ERGO NEXT | $5 | $62 |
| Software | ERGO NEXT | $23 | $271 |
| Spa/Wellness | ERGO NEXT | $15 | $180 |
| Tech/IT | ERGO NEXT | $24 | $283 |
| Startup | ERGO NEXT | $11 | $136 |
| Travel | ERGO NEXT | $6 | $74 |
| Transportation | ERGO NEXT | $197 | $2,369 |
| Trucking | ERGO NEXT | $237 | $2,844 |
| Tree Service | ERGO NEXT | $189 | $2,273 |
| Wedding Planning | ERGO NEXT | $25 | $301 |
| Tutoring | ERGO NEXT | $9 | $106 |
| Veterinary | Simply Business | $17 | $205 |
| Welding | ERGO NEXT | $102 | $1,219 |
| Window Cleaning | ERGO NEXT | $181 | $2,167 |
| Wholesale | The Hartford | $35 | $421 |
How Much Is Workers' Comp Insurance in Kentucky?
Kentucky workers' comp insurance cost averages $69 monthly ($825 annually), $5 below the national average of $74. Costs vary by profession, ranging from $68 annually ($34 per employee) for speech therapists to $9,372 yearly ($4,686 per employee) for roofers.
| Accountants | $19 | $230 |
| Ad Agency | $15 | $178 |
| Auto Repair | $143 | $1,713 |
| Automotive | $109 | $1,306 |
| Bakery | $50 | $602 |
| Barber | $13 | $159 |
| Beauty Salon | $14 | $164 |
| Bounce House | $38 | $451 |
| Candle | $37 | $447 |
| Cannabis | $77 | $930 |
| Catering | $69 | $825 |
| Cleaning | $45 | $545 |
| Coffee Shop | $44 | $526 |
| Computer Programming | $26 | $314 |
| Computer Repair | $22 | $270 |
| Construction | $169 | $2,032 |
| Consulting | $28 | $338 |
| Contractor | $155 | $1,855 |
| Courier | $210 | $2,516 |
| DJ | $13 | $157 |
| Daycare | $12 | $150 |
| Dental | $11 | $126 |
| Dog Grooming | $60 | $721 |
| Drone | $25 | $303 |
| Ecommerce | $20 | $245 |
| Electrical | $54 | $647 |
| Engineering | $36 | $429 |
| Excavation | $100 | $1,201 |
| Florist | $57 | $678 |
| Food | $39 | $474 |
| Food Truck | $42 | $506 |
| Funeral Home | $25 | $301 |
| Gardening | $44 | $523 |
| HVAC | $59 | $708 |
| Handyman | $88 | $1,055 |
| Home-based | $9 | $112 |
| Hospitality | $65 | $778 |
| Janitorial | $46 | $549 |
| Jewelry | $28 | $338 |
| Junk Removal | $132 | $1,579 |
| Lawn/Landscaping | $35 | $422 |
| Lawyers | $49 | $590 |
| Manufacturing | $55 | $658 |
| Marine | $140 | $1,684 |
| Massage | $14 | $165 |
| Mortgage Broker | $13 | $155 |
| Moving | $246 | $2,947 |
| Nonprofit | $30 | $355 |
| Painting | $131 | $1,571 |
| Party Rental | $34 | $414 |
| Personal Training | $23 | $279 |
| Pest Control | $66 | $789 |
| Pet | $29 | $344 |
| Pharmacy | $6 | $71 |
| Photography | $16 | $191 |
| Physical Therapy | $6 | $77 |
| Plumbing | $60 | $715 |
| Pressure Washing | $78 | $936 |
| Real Estate | $28 | $336 |
| Restaurant | $59 | $707 |
| Retail | $33 | $390 |
| Roofing | $781 | $9,372 |
| Security | $49 | $587 |
| Snack Bars | $40 | $485 |
| Software | $25 | $297 |
| Spa/Wellness | $16 | $196 |
| Speech Therapist | $6 | $68 |
| Startup | $12 | $145 |
| Tech/IT | $26 | $306 |
| Transportation | $214 | $2,565 |
| Travel | $7 | $79 |
| Tree Service | $207 | $2,485 |
| Trucking | $252 | $3,030 |
| Tutoring | $9 | $113 |
| Veterinary | $18 | $218 |
| Wedding Planning | $27 | $322 |
| Welding | $110 | $1,321 |
| Wholesale | $38 | $452 |
| Window Cleaning | $194 | $2,331 |
Kentucky Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Kentucky:
Below National Average Rates
Kentucky's workers' comp rates give your business a significant advantage. At $0.83 per $100 of payroll, you'll pay about 33% less than businesses in most other states. Here's what that means for your bottom line: if your annual payroll is $100,000, you'll spend roughly $830 on workers' comp in Kentucky versus $1,200 or more elsewhere. This cost advantage helps Kentucky small businesses stay competitive and invest savings back into growth.
Policy Credits and Debits
Kentucky insurers can adjust your base rates by up to 25% based on your business's unique profile. This flexibility rewards you for maintaining strong safety practices and keeping claims low. If your business qualifies for a 25% credit, you could save several hundred to several thousand dollars each year. The key is demonstrating consistent workplace safety and effective risk management, which pays off directly through lower premiums.
KEMI's Competitive Market Influence
KEMI, Kentucky's largest workers' comp provider, has cut rates by 43% over the past decade while returning $85 million in dividends to policyholders. With more than 20,000 Kentucky businesses covered, KEMI's competitive pricing forces private insurers to keep their rates attractive. KEMI also functions as the safety net for high-risk businesses that struggle to find standard coverage, so every Kentucky employer can access affordable protection regardless of their industry or claims history.
Drug-Free Workplace Program Discount
Get your workers' comp premium reduced by 5% through Kentucky's Drug-Free Workplace certification program. You'll need to establish a comprehensive testing policy that includes post-offer, random, reasonable suspicion, post-accident, and follow-up testing with at least an 11-panel drug screen. For a business spending $5,000 annually on workers' comp, certification saves you $250 per year. Beyond the discount, you'll create a safer workplace and likely reduce injury-related claims over time.
Small Deductible Program
Kentucky requires all carriers to offer deductible options from $100 to $10,000 for medical and indemnity costs. Choosing a higher deductible lowers your premium because you're taking on more initial claim costs before insurance kicks in. A business that switches from a $100 deductible to $5,000 can reduce premiums by 15-30%. This works well if your business has solid financials and a strong safety record, letting you self-insure smaller claims while protecting against major losses.
Industry-Specific Pricing (Coal vs. Non-Coal)
Kentucky separates coal industry businesses from other industries when setting rates. In 2024, KEMI dropped non-coal rates by 10.5% compared to an 8.9% overall decrease. Coal mining and related operations face higher premiums because black lung disease remains Kentucky's most common occupational illness. If you run a business outside coal mining, you benefit from substantially lower rates because you're not paying for risks specific to coal extraction and processing.
How Much Workers' Comp Insurance Do I Need in Kentucky?
If you employ even one person in Kentucky, state law dictates you need workers' compensation insurance. Your policy covers all medical expenses for work injuries without deductibles, and pays two-thirds of your employees' wages during recovery. Your premium depends on your total payroll and the level of risk associated with your industry. For example, construction companies pay more than office-based businesses.
Skip required workers' compensation coverage and you'll face $1,000 in daily fines per employee, forced closure and possible criminal charges. Most Kentucky small businesses buy policies through private insurers, though the Kentucky Employers' Mutual Insurance Authority offers an alternative if private coverage isn't available.
Kentucky Workers' Comp Insurance Exemptions
While you're often required to have coverage in Kentucky, some business categories are exempt from workers' comp requirements:
- Domestic Workers: Kentucky exempts domestic workers if you employ fewer than two in your home and they work under 40 hours weekly.
- Short-Term Home Maintenance Workers: Workers you hire for 20 days or less to handle home repairs or maintenance don't need coverage if you have no other employees.
- Agricultural Employees: Anyone working in agriculture falls outside Kentucky's workers' comp requirements.
- Religious and Charitable Organization Workers: Employees who work solely for aid or sustenance from religious or charitable groups are exempt.
- Federal Employees: Workers already covered by federal liability laws don't need Kentucky coverage, except those under the Black Lung Benefits of the Federal Coal Mine Health and Safety Act of 1969.
- Carpool and Vanpool Participants: Employees carpooling or vanpooling to work aren't covered during their commute.
- Religious Sect Members: Members of religious sects that oppose insurance and have supported their communities for at least 10 years can claim exemption.
- Voluntary Rejection: Your employees can opt out of coverage by filing written rejection with the Kentucky Department of Workers' Claims.
- Independent Contractors and Sole Proprietors: Independent contractors and self-employed sole proprietors don't need to cover themselves, though you may face "up the ladder" liability if your subcontractors skip coverage for their workers.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Kentucky exempts federal employees from state workers' compensation under KRS 342.650. Federal workers receive coverage through FECA, railroad employees through FELA and maritime workers through the Longshore and Harbor Workers' Compensation Act. Independent contractors don't need Kentucky coverage since they're not employees. You can voluntarily cover unpaid volunteers to avoid potential lawsuits, though Kentucky doesn't require it.
How to Get the Best Workers' Comp Insurance in Kentucky
Finding the right workers' compensation insurance means matching coverage to your specific business risks at competitive rates.
- 1Determine if you need workers' comp coverage in Kentucky
Kentucky requires coverage the moment you hire your first employee. Check the exemption list to see if your business structure qualifies for an exception. Sole proprietors don't need coverage, but bringing on even one staff member changes that requirement.
Kentucky applies strict standards when classifying workers. Someone you pay as an independent contractor might legally count as an employee under state rules, which means you'd need to provide coverage.
- 2Gather your business information
Pull together your total employee count, annual payroll and industry classification codes. Kentucky bases your rates on your business type and workplace risk level. Construction companies pay higher premiums than office businesses because injuries happen more frequently.
Getting your payroll or classification wrong leads to audit bills and coverage gaps when you file claims. Verify these numbers before requesting quotes.
- 3Request workers' comp quotes from multiple carriers
Contact at least three insurers to compare rates and coverage. Include the Kentucky Employers' Mutual Insurance Authority in your search, since KEMI provides coverage when private insurers decline.
Private insurers price competitively against KEMI, though KEMI won't always give you the lowest rate. Compare quotes side by side to balance business insurance costs with solid coverage.
- 4Research providers with industry experience
After gathering quotes, focus on insurers who understand your specific industry. Restaurants deal with different hazards than construction sites, and experienced carriers recognize these distinctions instead of just offering affordable business insurance rates.
Seek out insurers familiar with Kentucky workplace safety requirements and your business risks. Industry knowledge matters when you file claims or need safety support.
- 5Evaluate your top provider options
Check each insurer's track record to identify the best insurance for your business:
- Review claim processing speed, customer ratings and complaint history with the Kentucky Department of Insurance
- Ask about safety training and return-to-work programs that get injured employees back on the job faster
- Confirm the insurer's financial strength ratings to ensure they'll pay claims when you need them
- Find carriers experienced with Kentucky's workers' compensation dispute process
- 6Review and purchase your workers' compensation policy
Read policy details before signing, watching for coverage limits, exclusions and renewal terms under Kentucky law. Pick a payment plan that fits your cash flow. Pay-as-you-go workers' comp structures benefit businesses with seasonal workers or changing payroll, letting you pay premiums on actual wages instead of estimates.
Make sure your policy covers all employees and provides required Kentucky benefits like full medical care and two-thirds wage replacement during temporary disability.
- 7Reassess before annual renewal
Check your coverage each year before renewal. Tell your insurer about changes in employee count, payroll or business activities that affect your rates.
Your experience modification rate shows how your claims compare to similar Kentucky businesses. Fewer claims lower your rates, while frequent claims raise premiums. Rates can shift even without claims as Kentucky's workers' compensation market adjusts to statewide trends.
Best Kentucky Workers' Compensation Insurance: Bottom Line
ERGO NEXT, The Hartford and Simply Business lead Kentucky's workers' comp insurance market. What's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
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