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Frequently Asked Questions

Frequently Asked Questions

Yes, employers with one or more employees are required to obtain and maintain a policy of workers’ compensation insurance unless they have been authorized by the Commissioner to directly pay compensation to injured employees. Family members, temporary workers, and part-time workers are considered employees. Every policy of workers’ compensation insurance is required to pay the employer’s entire liability for workers’ compensation. As a consequence, out-of-state employers performing work in Kentucky are required to obtain a policy of insurance that provides Kentucky coverage; an “all states” endorsement does not ​qualify because it does not pay the employer’s entire liability for workers’ compensation.

You may obtain workers’ compensation insurance from any insurance carrier authorized to write workers’ compensation ​insurance in Kentucky; contact your local insurance agent to request a policy from one of these insurance carriers.

Employers who do not have workers’ compensation insurance are to be fined $100 to $1,000 for each of the employer’s employees every day the employer is without coverage. If the employee is awarded benefits paid by the Uninsured Employers’ Fund (“UEF”), the employer is required to reimburse the UEF for any money paid and may be subject to legal action to collect these funds. Additionally, the employer is no longer protected by the “exclusive remedy” provision of workers’ compensation and the employee may sue the employer in court to seek pain and suffering, punitive damages, and any other relief ​allowed by law.

Every employer is required to display a Workers' Compensation Posting Notice conspicuously at its primary office and other locations, where employees report for payroll and personnel matters. [KRS 342.610(6)] Contact your insurance agent or workers' compensation carrier for a current notice if you did not receive one with your latest ​policy.

Kentucky Revised Statute 342.420 specifically prohibits the employer from deducting the workers’ compensation insurance premium from wages or salary of any employee. The Commissioner is required to impose a fine of not less than $100 and not more than $1,000 for each ​violation.

Yes, the employer is required to report the alleged injury to their workers’ compensation insurance carrier within three days of notification, regardless of whether they or a co-worker witnessed the injury. The insurance company will investigate the claim and determine if it is compensable or ​not.

No, only employers authorized by the Commissioner to directly pay compensation benefits may do so (this is called self-insurance). Employers authorized by the Commissioner to directly pay compensation benefits are required to deposit a bond or letter of credit to secure the compensation liability incurred during its period of self-insurance. Employers must meet multiple criteria before being authorized to self-insure, one of which is the employer’s assets must exceed its​ liabilities by $10,000,000.

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For​ assistance, please ​​contact Director Scott Gasser at Scott.Gasser@ky.gov or LaborKYWCCompliance@ky.gov



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