Question 1

Is workers' comp required for Kentucky contractors?

Accepted Answer

Yes — Kentucky requires workers' compensation for any employer with one or more employees, including part-time and most family members. Sole proprietors and partners can elect out, but the moment you have a single W-2 or 1099 employee performing covered work, KY law requires coverage. The Kentucky Department of Workers' Claims actively enforces this and stop-work orders are common for uninsured contractors.

Question 2

What is KEMI and should KY contractors use it?

Accepted Answer

Kentucky Employers' Mutual Insurance (KEMI) is a state-created competitive workers' compensation carrier that writes a significant share of Kentucky's construction WC. KEMI is not the only option — every commercial WC carrier writes Kentucky — but it's a widely used baseline market, especially for new ventures, hard-to-place classes, or contractors with mod issues. RISKX shops both KEMI and commercial markets to find the right fit per account.

Question 3

How much does construction insurance cost in Kentucky?

Accepted Answer

A typical Kentucky contractor pays $5,500–$15,000/year for a full package across general liability, workers' comp, commercial auto, and tools/equipment. Workers' comp is the biggest line item — a 10-person framing crew with $500,000 payroll often pays $35,000–$65,000/year on WC alone, depending on classification and experience modifier. Strong safety programs and an experience mod below 1.00 are the main premium-reduction levers.

Kentucky Construction Insurance | RISKX