All Kentucky employers, both public and private, are required by state law to provide workers’ compensation coverage for their employees, including corporate executives. Kentucky employers have four options for coverage.

• Self Insurance in which employers are required to deposit an acceptable security, indemnity or bond to secure potential liability claims.
• Join a self-insurance group, if a minimum of 11 employees.
• Purchase coverage from a private insurance company. Kentucky insurance laws prohibit standard workers’ compensation rates set by rate making bureaus, and each insurance carrier must file its own rate schedule with the state insurance director.
• Purchase coverage from the Kentucky Employers' Mutual Insurance Authority.

Insurance rates are based on the risk of injury and occupational disease in the various industries/occupations. Rates are determined for individual industries on the basis of 4-digit numbering system on insurance industry “manual codes.” Rates are quoted on the basis of costs per $100 payroll.