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Workers’ Compensation Insurance in Kentucky

Kentucky requires employers subject to Chapter 342 to insure their compensation liability or obtain approval to pay claims directly with required security. The statute defines covered employees broadly and lists specific exclusions, so check your actual work relationships and any exception. 1,2,3

What Is Workers’ Compensation?

Workers’ compensation can pay medical care and part of an employee’s lost wages after a work-related injury or illness. If you have staff, check who is covered in each state; owners, contractors and some workers may be treated differently. Read the national Workers’ compensation guide.

Kentucky Requirements

RequirementDetails
Employer coverageAuthorized workers’ compensation insurance or approved direct payment with required security 1

What to Watch for in Kentucky

  • The Statute Defines Employees Broadly

    Kentucky includes people working under express or implied contracts of hire, known helpers and assistants, executive officers, and people serving the employer’s trade or business, subject to listed exceptions. Give the broker actual duties and work arrangements instead of relying only on contractor labels. 2,3

  • Agricultural Employees Are Listed as an Exception

    Kentucky’s statute exempts a person employed in agriculture from Chapter 342 coverage. If your business combines farm and nonfarm work, ask how the law treats each role and payroll group before finalizing coverage. 3

  • Some Domestic and Short Home-Repair Work Is Excluded

    The statute excludes domestic servants in private homes when the employer has fewer than two employees regularly working at least 40 hours a week in domestic service, and certain home maintenance or repair jobs lasting no more than 20 consecutive workdays. Check these limits against the worker and job before leaving them off the application. 3

  • Direct Payment Requires Financial Proof and Security

    An employer seeking to pay compensation directly must prove financial ability to the commissioner, who requires security, indemnity, or a bond to the extent directed. Ask whether your business qualifies and what security the commissioner would require before comparing this route with insurance. 1

Who Regulates Insurance in Kentucky

Kentucky Department of Insurance

The Kentucky Department of Insurance licenses agents and insurers, monitors the insurance market, and accepts complaints about insurance companies and agents. You can use its state lookup or complaint service to check a license or raise an insurance issue. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% on Kentucky-home-state premiums and other premium consideration; separate 1.8% surcharge on eligible risks located in Kentucky, subject to statutory exceptions; applicable local-government premium tax may also apply When Kentucky is the insured's home state, the state tax is 3% of premium and other consideration treated as premium; local-government premium taxes may also apply. A separate 1.8% surcharge generally applies to Kentucky risks, but state law exempts multistate nonadmitted risks and specified government and nonprofit premiums. The broker must make a diligent effort to place coverage with an admitted carrier before using surplus lines. 7,10,8,9,11

Providers With Documented State Licenses

These providers publish a national listing for Workers’ compensation; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Kentucky. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 14
  • ERGO NEXT InsuranceNext First Insurance Agency, Inc.Insurance producer · checked 2026-09-28ERGO NEXT’s current license table lists Next First Insurance Agency, Inc. in 50 jurisdictions, including Washington, DC; New York is excluded because its table rows name Next Insurance Services and AP Intego, not Next First. The table is company-reported; it does not establish product availability or provide state-regulator verification for each entry. 16
  • HiscoxHiscox Insurance Company Inc.Insurer · checked 2026-09-28Hiscox’s U.S. company information states that Hiscox Insurance Company Inc. is licensed in all 50 states and the District of Columbia. This is company-reported insurer authority for this entity and does not establish which company issues every Hiscox-branded product. 15
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 17
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 18

Questions to Ask Before You Buy in Kentucky

  1. Which of our workers, helpers, or executive officers fall within Kentucky’s employee definition, and which statutory exceptions apply?
  2. How should we separate agricultural, domestic-service, or short-term home-repair work when we report payroll?
  3. What financial documentation and security would Kentucky require if we apply to pay claims directly?
  4. How will our policy handle employees who work in more than one state?

Workers’ Compensation in Kentucky: FAQ

Is workers’ compensation required for Kentucky employers? 1

Yes, for employers subject to Chapter 342. Those employers must insure their liability with an authorized organization or obtain approval to pay compensation directly with required security. 1

Are agricultural workers covered by Kentucky workers’ compensation? 3

No. KRS 342.650 lists a person employed in agriculture among the employees exempt from Chapter 342. 3

Workers’ Compensation in Other States

Other Coverage in Kentucky

Sources

  1. 342.340: Employer to insure or provide security against liability to workers. Kentucky Legislative Research Commission; KRS 342.340(1). Accessed 2026-09-28.
  2. 342.640: Coverage of employees. Kentucky Legislative Research Commission; KRS 342.640(1)–(4). Accessed 2026-09-28.
  3. 342.650: Exemptions of particular classes of employees from coverage. Kentucky Legislative Research Commission; KRS 342.650(1)–(11). Accessed 2026-09-28.
  4. Kentucky Department of Insurance. Kentucky Department of Insurance; Homepage and consumer telephone. Accessed 2026-09-28.
  5. Insurance License Lookup. Kentucky Department of Insurance; State-designated producer/company search. Accessed 2026-09-28.
  6. File an Insurance Complaint. Kentucky Department of Insurance; Official DOI consumer complaint page accepts complaints involving general liability and disputes with insurers, agents or adjusters. Accessed 2026-09-28.
  7. KRS 304.10-180. Kentucky General Assembly; KRS 304.10-180(1): Kentucky-home-state; 3% applies to premiums, assessments, fees, charges or other premium consideration; local premium tax is separate. Accessed 2026-09-28.
  8. Local Government Premium Taxes. Kentucky Department of Insurance; Current local tax schedules. Accessed 2026-09-28.
  9. KRS 304.10-090. Kentucky General Assembly; KRS 304.10-090 requires policy notice that nonadmitted insurer is not a Kentucky Insurance Guaranty Association member and its benefits are unavailable upon insolvency. Accessed 2026-09-28.
  10. KRS 136.392. Kentucky General Assembly; KRS 136.392(1),(5)-(6): $1.80 per $100 on premium/other charges for Kentucky risks; named government/nonprofit exceptions; multistate nonadmitted risks exempt. Accessed 2026-09-28.
  11. Surplus Lines. Kentucky Department of Insurance; Full page states licensed surplus-lines brokers must make a diligent effort to place with an admitted carrier before exporting coverage. Accessed 2026-09-28.
  12. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  13. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  14. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  15. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  16. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  17. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  18. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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