In Kentucky, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Kentucky's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Kentucky, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Kentucky?
Mandatory for any employer with one or more employees (full-time, part-time, temporary, and family all count), except employers solely in agriculture.
Can owners and officers be included or excluded in Kentucky?
| Sole proprietor | Excluded; may elect in by endorsement. |
|---|---|
| Partners | Excluded (qualified partners); may elect in by endorsement. |
| LLC members | Excluded (qualified members); may elect in by policy endorsement. |
| Corporate officers | Included by default; may elect out via Form 4 filed with the Department of Workers' Claims (exclusion removes Part One coverage but not employers' liability). |
How to make the election in Kentucky
- Official source: Form 4 — officer election/rejection (filed with the Department of Workers' Claims; notarized original required)
Payroll counted for an included owner in Kentucky
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2027), set by NCCI.
| Included owner/officer minimum | $1,150 per week |
|---|---|
| Included owner/officer maximum | $4,600 per week |
Included executive officer $1,150–$4,600/week; covered partners, sole proprietors, and LLC members at $60,400/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Kentucky's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through KEMI — Kentucky Employers' Mutual Insurance — competitive fund and market of last resort (the former assigned-risk pool ended in 1995). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Kentucky business insurance · Workers' compensation coverage · Kentucky Department of Workers' Claims.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Kentucky?
It depends on your entity and role. Excluded; may elect in by endorsement. Included by default; may elect out via Form 4 filed with the Department of Workers' Claims (exclusion removes Part One coverage but not employers' liability). Employees are always covered.
How do I include or exclude an owner from workers' comp in Kentucky?
The right form, portal, or endorsement depends on your entity type. Kentucky records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Kentucky?
Included executive officer $1,150–$4,600/week; covered partners, sole proprietors, and LLC members at $60,400/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Kentucky workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.