Workers' Compensation in Kansas | Pie Insurance

Kansas workers’ comp 101

What every Kansas small business owner should know about workers’ compensation insurance

According to the Kansas Department of Commerce, more than 250,000 small businesses operate in the state. If you plan on joining the thousands of others who have decided to follow their dreams and open a company, you’re in luck. The state of Kansas offers services and resources for entrepreneurs to help ensure their success.

One area that often goes overlooked by new small business owners is proper business insurance. While most people are familiar with coverages such as general liability or commercial auto insurance, owners are often hesitant about workers’ compensation.

Since workers’ compensation is a requirement for nearly all Kansas businesses with employees, it’s crucial to understand the coverage and how it affects your company.

Here are 10 of the most important aspects of workers’ comp insurance that you should know.

10 important workers’ comp facts for Kansas small business owners

1. Workers’ compensation insurance provides benefits to employees injured at work and helps cover medical expenses.
2. Kansas law mandates that you must carry workers’ comp insurance unless one of the following exceptions applies to your company:
   1. Your company operates in specific verticals within the agricultural industry
   2. Your business has gross payroll of less than $20,000 per year
   3. Your small business employs realtors who are independent contractors
3. Employees must report a workplace injury or illness to their supervisor within 20 days of the incident occurring.
4. As the business owner, you must report a workplace accident with the Division of Workers Compensation within 28 days of an employee’s notification.
5. Sole proprietors and single-member LLCs don’t need to maintain workers’ comp insurance for themselves.
6. If your small business doesn’t keep an active workers’ compensation insurance policy, you could face penalties that include either paying twice the annual premium or a fee equalling $25,000.
7. Business owners have three choices of obtaining workers’ comp coverage:
   1. Self-insurance through the Division of Workers Compensation
   2. Group-funded pool through the Kansas Insurance Department
   3. Licensed insurance carrier
8. Employers must post the Workers’ Compensation Rights and Responsibilities Notice in one or more convenient places for workers to see.
9. Workers’ comp offers the following disability benefits to injured workers:
   1. Temporary partial or total disability
   2. Permanent partial scheduled disability
   3. Permanent partial general disability
   4. Permanent total disability
10. Employers are required to provide the injured employee or their beneficiary with information to assist in the claims process.

Remember, every situation is different and state workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.