Kentucky workers’ comp premium starts with your payroll for each type of job, divided by $100, times the rate for that job’s class code. That number is then adjusted by your experience modifier, which reflects your past claims. Kentucky requires workers’ comp once you have one or more employees.
The basic formula
(Payroll for a class ÷ 100) × class rate × experience modifier = premium
- Payroll: what you pay employees in each job type.
- Class code: a code for the type of work. Riskier work has a higher rate.
- Experience modifier (e-mod): a number based on your claims history. A mod above 1.0 raises the price; below 1.0 lowers it.
Why does the class code matter so much?
An office worker and a roofer carry very different injury risks. If an employee is coded in the wrong class, the premium can be far off in either direction. Checking class codes is one of the first things to review on a workers’ comp quote.
How can I lower my workers’ comp cost?
- Make sure each employee is in the right class code
- Report payroll accurately so the year-end audit has no surprises
- Prevent injuries with training and a written safety plan
- Report claims quickly so they can be managed early
What about Ohio?
Ohio is different. Ohio employers must buy workers’ comp from the Ohio Bureau of Workers’ Compensation, not a private insurer.
What do I need for a workers’ comp quote?
- Legal business name and FEIN
- What your business does
- Payroll split by job type
- Number of employees
- Claims history (loss runs) from your current carrier
How Riverfront Insurance Partners helps
We quote Kentucky workers’ compensation and the rest of your business insurance, including liability and commercial auto, from the carriers we represent. We also check your class codes before we quote.
Get your workers’ comp quote: call (859) 512-8325 or request a quote.
FAQ
What happens if I skip workers’ comp in Kentucky?
Employers without required coverage can be fined $100 to $1,000 per employee for each day without it.
What is a payroll audit?
At the end of the policy, the carrier compares your real payroll to your estimate and adjusts the premium.
Do part-time employees count?
Yes. Kentucky’s requirement includes part-time workers.