is the Special Fund Assessment?
The Special Fund Assessment is imposed by the Commonwealth of Kentucky to fund and pre-fund the liabilities of the Special Fund and help finance the state workers’ compensation program (including the Kentucky Department of Workers’ Claims and portions of the Kentucky Department of Labor).
Insurance carriers are required by Kentucky statute to add the Special Fund assessment to the total premium charged to an employer for workers’ compensation coverage. The full amount of the assessment is transferred by the carrier to the Kentucky Workers’ Compensation Funding Commission on a quarterly basis.
How can coal companies obtain their "Drug-Free Workplace" certification to be eligible for a 5% premium credit?
A company designated as a licensee of the Office of Mine Safety and Licensing (OMSL) can submit a written copy of its drug-free workplace program to OMSL for certification. To learn more about the certification
process, click here.
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 the entire policy term to earn the premium credit.
How can a business obtain its "Drug-Free Workplace" certification from the state of Kentucky to be eligible for a premium credit through KEMI?
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 the program is certified by the state of Kentucky, the business must submit proof of the certification to KEMI to receive a credit on its workers’ compensation premium. The program and certification must remain in place for the entire policy term to earn the premium credit.
my employees covered while working in another state?
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
is a workplace injury reported to KEMI?
A First Report of Injury, IA-1 Form, should be completed and
sent to KEMI's Claims Unit as soon as possible. We accept these via telephone,
fax and mail. Our registered users can
login to our secure area and submit an IA-1 online. KEMI's
Claims staff will be happy to assist you in completing this form. (KRS 342.038
requires the employer to notify its insurance carrier within three (3) working
days of receipt of notice of injury/illness or alleged injury/illness.)
are the benefits of implementing a safety program?
A safety program can affect both your direct and indirect costs. The
direct benefits of a safety program may result in premium discounts
offered to policyholders that have effective safety programs and fewer
or less severe injuries, which also results in a lower experience
modifier. All these factors combined can lower the amount a business pays for
workers' compensation coverage. The indirect benefits of a safety
program include, but are not limited to, reduced employee absenteeism due
to injuries and illnesses, reduced costs associated with recruiting
and training new employees to replace injured workers, and
increased worker morale and productivity.
are benefits issued and how often?
There are three types of indemnity benefits: temporary total disability (TTD), permanent partial disability (PPD) and permanent total disability (PTD). Each type of indemnity benefit has a different calculation defined by statute and uses specific information related to the claim. Please contact KEMI’s claims staff at 1-800-640-5364 for questions regarding a specific claim.
an employer be charged for outside labor and subcontractors?
The Kentucky Workers' Compensation Act requires an employer to provide
coverage to employees, including employees of any uninsured
subcontractor. KEMI will collect premium from the employer for
anyone considered to be an employee or an employee of an uninsured
We will not charge premium for an individual deemed to be an
independent contractor. These individuals are not
covered under the Act. A KEMI undewriter or auditor will gather information in an effort to determine if an individual
meets the standards to be considered an independent contractor.
For more information on the audit process, contact KEMI’s Audit Department.
is a KEMI independent contractor questionnaire?
The independent contractor questionnaire (ICQ) is a tool utilized by KEMI to assist in the determination of an employment relationship. Note: the KEMI Independent
Contractor Questionnaire is merely a tool. It is not a waivoer or substitute for
coverage. Filling out and signing the form does not mean you are
considered an independent contractor.
Click here for
the Independent Contractor Questionnaire (requires Acrobat Reader to
payroll do we use for included sole proprietors, partners or corporate officers?
Effective January 1, 2018, the payroll amount for an included sole proprietor, partner, or member of an LLC is $43,400. For included officers of a corporation, the minimum payroll is $44,200; the maximum payroll is $171,600. These amounts are based on NCCI Basic Manual Rules and are subject to change.
What is needed to cancel a policy?
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