State insurance guide
Kentucky Business Insurance Guide 2026
Kentucky employers with one or more employees, counting family members, temporary and part-time workers, must obtain and maintain workers' compensation insurance unless the Commissioner has authorized them to self-insure. Auto liability minimums and paid leave rules follow, each with its official source.
Explore Kentucky requirements
Open the state requirements checklistKentucky employers with one or more employees, counting family members, temporary and part-time workers, must obtain and maintain workers' compensation insurance unless the Commissioner has authorized them to self-insure; employers engaged solely in agriculture are not subject to the mandate (Kentucky Department of Workers' Claims: Employer Frequently Asked Questions; KRS 342.630). Auto liability policies must carry at least $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (Kentucky Transportation Cabinet, Mandatory Insurance). According to NCSL's table, there is no mandatory state-run paid family leave or disability insurance program to fund.
Official sources checked October 3, 2026. This guide is general information, so confirm your own case with the responsible agency.
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Workers' compensation
Who must carry it: 1 or more employees (Kentucky Department of Workers' Claims: Employer Frequently Asked Questions); employers engaged solely in agriculture excluded (KRS 342.630).
Yes, employers with one or more employees are required to obtain and maintain a policy of workers' compensation insurance unless they have been authorized by the Commissioner to directly pay compensation to injured employees.
Source: Kentucky Department of Workers' Claims: Employer Frequently Asked Questions
Exemptions and exclusions
KRS 342.650 exempts agricultural employment; domestic servants in a private home whose employer has fewer than two domestic employees each working 40 or more hours a week; home maintenance or repair work lasting 20 consecutive work days or less; workers covered by federal liability laws; direct sellers; certain clergy and church caretakers working 10 hours a week or less; and persons who elect out under the Commissioner's regulations (KRS 342.650). Out-of-state employers working in Kentucky need a policy with Kentucky coverage (Kentucky Department of Workers' Claims FAQ).
The agency to ask is the Kentucky Education and Labor Cabinet, Department of Workers' Claims. When a proposal arrives, the workers' comp calculator lets you check its payroll math, and the workers' compensation guide explains what you are buying.
Auto liability minimums
Kentucky's minimum auto liability limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
- Start date: not stated in the source; confirmed in force on October 3, 2026
- Source: Kentucky Transportation Cabinet, Mandatory Insurance
All motor vehicle owners in Kentucky must carry minimum liability coverage.
Source: Kentucky Transportation Cabinet, Mandatory Insurance
A $60,000 single limit is an alternative to the split limits, and basic reparation (no-fault) benefits are also required, except for motorcycles (Kentucky Transportation Cabinet, Mandatory Insurance). Ask your insurer whether these also apply to your commercial and fleet policies.
The Transportation Cabinet also notes that surplus lines carriers are not accepted for auto liability coverage, commercial or personal, for registration (Kentucky Transportation Cabinet, Mandatory Insurance).
Commercial and for-hire vehicles can face different or higher federal or state requirements, as our commercial auto guide explains.
Paid leave and disability insurance
There is no mandatory state-run paid family and medical leave insurance program and no state temporary disability insurance program in Kentucky, according to NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws; cross-checked on October 3, 2026 with the U.S. Department of Labor Women's Bureau).
The same NCSL page lists Kentucky among the states whose laws let employers buy optional paid leave coverage from private insurers; that option creates no employer mandate.
A 2026 law may not appear in that table yet, as Virginia's new program shows (Code of Virginia § 60.2-801); for a later payroll year, check with the Kentucky Education and Labor Cabinet.
Other requirements to check
Contracts and licenses can add their own conditions: a Kentucky license, a lease or a client agreement can name general liability limits or certificate wording. The certificate of insurance checklist tracks them, and the requirements-by-state guide covers other states.
Where to verify
- Workers' compensation: Kentucky Education and Labor Cabinet, Department of Workers' Claims
- Auto liability minimums: Kentucky Transportation Cabinet, Mandatory Insurance
- Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau
Bring the questions from our state requirements checklist when you contact them. If you want PolicyBenchmark to follow up on your Kentucky business, request coverage help.
Frequently asked questions
Does a Kentucky business with one employee need workers' compensation?
Generally, yes: Kentucky applies the requirement from the first employee (Kentucky Department of Workers' Claims: Employer Frequently Asked Questions). Exemptions listed above can still apply to particular workers or owners; the agency to ask is the Kentucky Education and Labor Cabinet, Department of Workers' Claims.
Are Kentucky's auto minimums enough for business vehicles?
Kentucky's minimums are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (Kentucky Transportation Cabinet, Mandatory Insurance). They are the lowest split limits the law allows (a lower single limit of $60,000 is the alternative noted above), not a measure of what a business needs, and commercial and for-hire vehicles can face different or higher federal or state requirements.
Does Kentucky require employers to pay into a paid leave program?
No, according to NCSL's table, last updated November 7, 2025 (NCSL): Kentucky has neither a mandatory state paid family and medical leave program nor a temporary disability insurance program. NCSL lists only optional coverage that employers can buy from private insurers. Confirm before planning a future payroll year.
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.