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Workers’ compensation insurance coverage

On Behalf of | May 4, 2023 | Workers' compensation |

Any person or company hiring one or more individuals in Kentucky must be able to provide workers’ compensation insurance. It does not matter if the employee is temporary, seasonal, full-time or part-time. Furthermore, you must have workers’ compensation coverage if you hire a family member. If your company’s headquarters is in a different state, but you have employees working in Kentucky, you must provide them coverage.

Independent contractors

Businesses that use independent contractors do not have to carry workers’ compensation coverage on them. These individuals usually have separate business addresses. They typically have a particular skill that the business needs on a short-term basis, such as plumbers or electricians.


Generally, partners in a business do not need to be covered by workers’ compensation. A person must typically sign a formal agreement to be counted as a partner. Furthermore, they must actively participate in the company’s decision-making process and share profits or losses.

Corporation officers

A business does not have to carry workers’ compensation insurance on officers who choose to file an Employee’s Written Notice of Rejection. This form is available by emailing the Commonwealth of Kentucky Labor Court.

Consequences of not carrying workers’ compensation insurance

Employers who choose not to have workers’ compensation insurance can be fined up to $1,000 per employee. Each day that coverage is not in place counts as a separate occurrence. Therefore, if one employee is uncovered for a week, it could cost the corporation up to $5,000.

Workers’ compensation insurance intends to help cover the loss of wages usually earned by an employee injured or dying while working in Kentucky. The state has created a special office to ensure employers provide coverage to their employees.