To get workers compensation in Kentucky you buy a policy on the open market from a private insurer licensed in the state, or from Kentucky's own state fund, KEMI, which competes with private carriers and also serves as the guaranteed market that cannot turn you down. Larger employers can also self-insure with state approval. For almost every small business, the path is simple: gather a few facts about your business and payroll, and we shop the market for you, including the fund as a backstop if you are hard to place.
Who this is for: Kentucky owners buying their first workers comp policy, or anyone who has been turned down or non-renewed and needs coverage now.
The short version
- Buy from a private carrier licensed in Kentucky, or from the state fund KEMI.
- KEMI is the guaranteed market, so it will cover you even when private carriers decline.
- Large, financially strong employers can self-insure with state approval.
- You mainly need your business details, payroll by role, and any claims history to apply.
- A broker shops multiple carriers and the fund at once to find the best fit.
Your three ways to get covered
Kentucky law gives employers three routes to secure coverage. Most take the first.
| Route | Who it fits | How it works |
|---|---|---|
| Private carrier | Most businesses | Buy from any insurer licensed to write comp in Kentucky, usually through a broker |
| State fund (KEMI) | Any employer, and anyone hard to place | Competes on price and cannot turn you down, so it is the guaranteed backstop |
| Self-insurance | Large, financially strong employers | Pay claims yourself under state approval, with a bond or letter of credit |
What to have ready
Applying goes faster when you gather a few things first: your legal business name and structure, what your business actually does, your estimated annual payroll split by the kind of work each person does, your number of employees, and any past claims. If you are a contractor, have your list of subcontractors and their coverage handy, since uninsured subs can be added to your premium. If a carrier has declined you, that is not the end. Because the state fund cannot refuse you, no eligible Kentucky employer has to go without, which also means you do not need a workaround like a policy that covers only the owner and no real employees.
What we do for you
Rather than apply to carriers one at a time, we take your details once and shop several private insurers plus the state fund together, then compare price and fit. We check that your work is classified correctly before you buy, so you are not overpaying from day one, and we can usually turn around proof of coverage the same day you bind, which is what a general contractor or landlord will ask for.
A Lexington example
Illustrative, not a quote. A Lexington HVAC contractor with four employees was non-renewed after a rough claim year and worried they could not get covered. We took their payroll and loss history once, shopped several carriers, and when the private market came back thin, placed them with the state fund, which cannot decline an eligible Kentucky employer. They had proof of coverage the same day for a builder that required it. See our workers comp for HVAC contractors page.
Real questions Kentucky owners ask
How do I get workers comp in Kentucky?
Buy a policy from a private insurer licensed in Kentucky or from the state fund, KEMI. Large, financially strong employers can also self-insure with state approval. For most owners a broker shops the market for you.
What if no private carrier will cover me?
You still have a guaranteed option. Kentucky's state fund, KEMI, competes with private carriers and cannot turn you down, so it serves as the backstop that ensures every eligible Kentucky employer can get covered.
What is KEMI?
KEMI is Kentucky Employers' Mutual Insurance, a state-created fund that sells workers comp in competition with private carriers and also acts as the guaranteed market of last resort for employers who are hard to place.
Can I self-insure in Kentucky?
Yes, but it is mainly for large, financially strong employers. You must get state approval and typically post security like a bond or letter of credit, so most small businesses buy a policy instead.
What do I need to apply?
Your legal business name and structure, a description of your work, estimated annual payroll split by role, your employee count, and any claims history. Contractors should also have their subcontractors' coverage details ready.
Do I need a policy that only covers the owner?
Almost never. Because Kentucky's state fund cannot refuse an eligible employer, there is no need for a workaround policy that lists no real employees. If you have staff, you need a policy that actually covers them.
How fast can I get proof of coverage?
Usually the same day you bind the policy. That matters because general contractors and landlords often require proof of coverage before you can start work, and we can turn it around quickly for most carriers.
Why Kentucky owners choose Morrow
- We shop the right market for you. In Kentucky you buy workers comp on the open, competitive market from any private insurer licensed in the state, and if no carrier will take you, the state's own fund, Kentucky Employers' Mutual Insurance, cannot turn you down, so we can shop your rate freely and still have a guaranteed fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Kentucky guides
Every Kentucky business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Kentucky (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What is a ghost workers comp policy?
- Kentucky HVAC workers comp
This guide is general information, not legal advice. Kentucky rules and penalty amounts can change, so verify current requirements with the Kentucky Department of Workers' Claims or a licensed advisor before you rely on them. Last updated: July 2026.