Kansas workers' compensation insurance

The Kansas workers’ comp statute is broad. It requires virtually all public sector and private employers with a payroll of more than $20,000 to provide workers’ compensation insurance for both full-time and part-time employees.

Employers in the following situations are exempt from providing workers’ compensation insurance:

• Those with a payroll of $20,000 or less
• Those with certain agricultural workers
• Realtors working as independent contractors
• Firefighters belonging to a firefighters’ relief association that has waived coverage under the state’s workers’ compensation law
• Certain owner-operator vehicle drivers (e.g., freight truckers) who have their own occupational accident insurance (OAI)

Here are several examples of how workers' compensation insurance coverage helps pay expenses for injured workers:

• A barista burns themselves while preparing a hot beverage for a customer. Workers' comp covers their medical provider appointment and pain medication.
• A retail store employee slips on a wet floor and hits their head. In this instance, workers' compensation would cover their emergency room trip, head MRI, and any following medical expenses during their recovery.
• A registered nurse develops a shoulder injury from lifting and turning patients. Workers' comp covers their surgery, medications, and physical therapy. It also provides temporary disability benefits until they have recovered.
• A wholesale stocker develops a back injury from many years of lifting and moving heavy stock onto pallets and trucks. Workers' comp covers their healthcare provider appointment, medication, and a portion of their lost wages while recovering.

Business owners in Kansas have four choices when it comes to buying a workers' compensation policy:

• Private insurance companies. You could contact each workers' compensation insurance carrier independently to compare their products and rates, but that's where agents and brokers like Insureon come in. As the nation's leading digital insurance agency, Insureon partners with 30+ top-rated insurance carriers to deliver the right coverage for your business. Fill out an easy online application to get started.
• The assigned risk plan. If they’re unable to get insurance from commercial insurers, they can buy it from the Kansas Workers’ Compensation Insurance Plan, which is administered by the Kansas Insurance Department.
• Self-insurance. Kansas employers who meet certain requirements may be able to self-insure for workers' comp. Those who qualify can self-insure their workers’ compensation claims. To self-insure, employers must demonstrate to the Kansas Department of Labor Workers Compensation Division that they have the financial ability to cover any workers’ comp claims that may arise.
• Join a group-funded pool. Employers who wish to join a workers' compensation pool, which has multiple employers as members, must obtain the permission of the Kansas Insurance Department.

Here's a breakdown of this equation:

• The classification rate reflects your employees' risk. Each worker has a classification code for the type of work they do. Insurers look up those codes in a database to find the associated rate, which is lower for office workers and higher for carpenters, tree trimmers, and others with a higher rate of injuries. Like most other states, Kansas relies on the National Council on Compensation Insurance (NCCI) database.
• The experience modification rate (EMR) reflects your business's risk. The average experience modification rate is 1.0, which means a business is similar in risk to others in its profession. Higher EMRs reflect higher risks, such as a history of claims. The EMR only comes into play for annual workers' comp premiums of at least $5,000, so it's not a factor for many small business owners.
• The insurer multiplies these numbers with your payroll divided by 100 to come up with your workers' compensation rate. Workers' compensation audits are typically done each year to ensure your business pays the right premium for this coverage.

When an employee suffers a workplace injury or develops an occupational illness, workers' compensation covers the cost of medical care. The treating physician must be approved by the employer. This policy also provides two-thirds of the employee's gross average weekly wage up to a certain limit, starting after a one-week waiting period.

Policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer if they accept workers' comp benefits.

Workers' compensation benefits can include:

• Medical benefits, such as emergency treatment, physical therapy, and physician referrals
• Reimbursement for medical-related travel mileage
• Temporary total disability benefits
• Permanent total disability benefits
• Permanent partial disability benefits, based on the functional impairment percentage
• Death benefits

The Kansas Department of Labor Division of Workers Compensation regulates workers' comp laws in the state. Review additional information on the Kansas Department of Labor website.

The families of Kansas employees who died after sustaining a work-related injury or illness can receive death benefits based on the following guidelines:

• Survivors need not be U.S. citizens or residents to receive compensation.
• The weekly benefits are based on 67% of the deceased worker’s average weekly wage, not to exceed the statutory maximum.
• The minimum death benefit equals 50% of the state’s average weekly wage.
• Total death benefits may not exceed $300,000, except in cases where the benefits are going to a dependent child under the age of 18.
• Employers in Kansas (or their insurers) must pay funeral expenses up to $5,000 and all medical and hospital bills relating to the fatal incident.
• Employers (or their insurance company) must make an initial payment of $40,000 to the surviving legal spouse or totally dependent children or divide the payment equally between them.