Frequently Asked Questions

Workers’ compensation insurance (workers’ comp) is a form of insurance paid by employers which covers an employee’s medical expenses and lost wages if they are injured on the job or acquire a work-related illness.

Workers’ comp coverage is required in Kentucky for all organizations with at least one employee, however there are a limited number of employee and employer exceptions to this requirement. If you are unsure about whether you need to purchase coverage, you can consult with an independent insurance agent. Find an Agent »

Whether you work with an agent or contact KEMI to obtain coverage, your journey will start with submitting an application. Find an Agent »

Once we receive your application, a KEMI underwriter will evaluate the risks associated with your organization and your industry, then calculate insurance premium based on five key factors.

A First Report of Incident should be submitted any time an employee is injured as a result of the employee’s job. As required under Kentucky law (KRS 342.038), the incident, regardless of severity, should be reported to KEMI as soon as possible, but at least within three (3) days of occurrence.

Timely reporting is critical to maintain compliance with the law, control costs, and maximize service to all affected parties.

The fastest and easiest way to report an incident or illness is through submitting the First Report of Incident online. A claim may also be reported by printing the First Report of Incident or Illness, or IA-1 form, and faxing it to 859-425-7822 or mailing to the address below:

KEMI
ATTN: Claims Unit
P.O. Box 12500
Lexington, KY 40583-2500

To report a claim by phone, call 1-800-640-KEMI during business hours (Monday – Friday from 8 a.m.-5 p.m. Eastern Time).

Yes! If you are considering coverage and would like to learn more about our payment plan options, contact us.

When KEMI issues your policy, your premium is calculated based upon your payroll estimates for the year, so the purpose of the audit is simply to obtain and verify the information necessary to compute the actual premium (versus the estimated premium) for your policy period. Some policyholders may receive a refund at the end of the year, and others may owe additional premium if their payroll was higher than estimated. Learn more about the audit process here.

Classification codes are established by the National Council of Compensation Insurance (NCCI). The classification system is designed to group employees with similar exposures (risk of incident) into the same classification. There are approximately 600 classifications describing various operations.

Each employer is assigned a governing class that best encompasses the primary exposures faced by their organization. It is important to note that classification codes are assigned based upon the operations of the insured, and not the duties of individual employees within the organization. If you have questions concerning class codes, contact us.

An experience modifier (sometimes called an experience modification or e-mod) is an adjustment of an employer’s premium for workers’ compensation coverage based on the losses the insurer has experienced from that employer. Typically, three full years of payroll and loss information is used in the calculation and produces a factor that is applied for one year.

The experience modifier is calculated by the National Council on Compensation Insurance (NCCI) according to the terms of the Experience Rating Plan Manual. The plan is mandatory for all employers who qualify (in general, an average of $5,500 in premium for three years). 

The average experience modifier for a given industry is a factor of 1.0. If the actual claims experience in the rating period is higher than the expected claims experience for the industry, the experience modifier will be above 1.0 and will increase the premium calculation. An experience mod above 1.0 suggests an employer is more likely to have claims than other employers within its industry.

Conversely, if the actual claims experience for an individual employer was lower than the expected claims experience for the industry, the experience modifier would be below 1.0 and will decrease the premium calculation. This factor would suggest an employer is less likely to have claims than other employers within its industry.

If a business does not qualify for experience rating, a factor of 1.0 is used in the premium calculation.

The Special Fund Assessment is a surcharge imposed by the Commonwealth of Kentucky per Kentucky Revised Statute 342.122 on workers’ compensation insurance premiums to fund and pre-fund the workers’ compensation benefit liabilities of the Special Fund and help finance the state workers’ compensation program. The full amount of the assessment collected by KEMI is transferred to the Kentucky Workers’ Compensation Funding Commission.

The assessment applies to:

• Premiums received by every insurance company that writes workers’ compensation policies for businesses and organizations in Kentucky.
• Every self-insured group in Kentucky.
• Every Kentucky employer carrying its own workers’ compensation risk.

Additional questions concerning the Special Fund Assessment may be directed to the Division of Workers’ Compensation Funds at (502) 564-5467.

The KEMI workers’ compensation policy provides coverage for Kentucky benefits as provided by the extraterritorial provisions of the Kentucky Workers’ Compensation Act, KRS 342.670.

Please visit the FAQs on the Audit Process page.

Applications for certification of the drug-free workplace are currently being accepted by the state of Kentucky. To learn more about this certification, click here.

If your business’ drug-free workplace program is certified by the state of Kentucky, you must submit proof of the certification to KEMI to receive a credit on your workers’ compensation premium. The program and certification must remain in place for the entire policy term to earn the premium credit.

For companies designated as a licensee of the Office of Mine Safety and Licensing (OMSL), you may submit a written copy of your drug-free workplace program to OMSL for certification. If the program is certified by OMSL, the company must submit proof of the certification to KEMI in order to receive a 5% credit on its workers’ compensation insurance premium. The program and certification must remain in place for the entire policy term to earn the premium credit.

To request policy cancellation, submit one of the following:

• Completed Acord Form 35 – Cancellation Request/Policy Release
• Written notice which should include the effective date of cancellation and the reason for cancellation.  The notice must be signed by an officer/owner of the policyholder; or
• Click here and complete the KEMI Policy Cancellation Request Form