Workers Comp Rates in Kentucky (KY)
The average workers' compensation rate in Kentucky is $0.98 per $100 of payroll , effective as of 2025-01-01. This is $0.21 (17.6%) below the national average of $1.19 per $100. Kentucky has a competitive insurance market where employers can purchase workers' comp from private insurers. Kentucky requires workers' compensation for all employers. The state has a competitive market with rates slightly below the national average.
Workers Comp Requirements in Kentucky
Workers Comp Rates by City in Kentucky
The table below shows average workers' compensation rates for 4 cities in Kentucky, sorted by rate from highest to lowest. Rates range from $0.92/$100 in Frankfort to $1.00/$100 in Louisville. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Louisville | $1.00 | $2,500 | +$0.02 | -$0.19 | Largest city |
| Bowling Green | $0.98 | $2,450 | Same | -$0.21 | Manufacturing |
| Lexington | $0.95 | $2,375 | -$0.03 | -$0.24 | -- |
| Frankfort | $0.92 | $2,300 | -$0.06 | -$0.27 | State capital |
How Kentucky Compares to Other States
Below is a comparison of Kentucky with five states that have similar workers' compensation rates. This comparison helps illustrate where Kentucky stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Kentucky (KY) | $0.98 | Competitive | 1+ | 7 days | $2,450 |
| Tennessee (TN) | $0.98 | Competitive | 5+ | 7 days | $2,450 |
| New Mexico (NM) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| North Carolina (NC) | $1.00 | Competitive | 3+ | 7 days | $2,500 |
| Idaho (ID) | $0.95 | Competitive | 1+ | 5 days | $2,375 |
| South Dakota (SD) | $0.95 | Competitive | 1+ | 7 days | $2,375 |
Workers Comp Cost Examples for Kentucky
The following table shows estimated annual workers' compensation costs for various payroll sizes in Kentucky using the state average rate of $0.98 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $490 | $41 |
| $100,000 | $980 | $82 |
| $250,000 | $2,450 | $204 |
| $500,000 | $4,900 | $408 |
| $1,000,000 | $9,800 | $817 |
| $2,500,000 | $24,500 | $2,042 |
Frequently Asked Questions About Workers Comp in Kentucky
How much does workers comp cost in Kentucky?
The average workers' compensation rate in Kentucky is $0.98 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $2,450 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Kentucky?
Yes. Kentucky requires workers' compensation for employers with 1 or more employees. The following are exempt: Agricultural workers, domestic workers, certain religious organizations. Penalties for noncompliance include: Class D felony, $1,000/day fine, personal liability.
Where can I buy workers comp in Kentucky?
Kentucky has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Kentucky?
The waiting period in Kentucky is 7 days. This means an injured worker must wait 7 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Kentucky is $1,001.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Kentucky, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.