To Obtain A Cheap Work Comp Quote For Your Company Provide Us With The Following Information:

1.    Your "Declarations" Page from your Current Workers Compensation insurance policy.
	Sample Declaration pages
2. Your most current " Experience Modification Worksheet"
	Sample Experience Modification Worksheets
	What to do if you can't find yours
3. Your loss runs from the last 3 years
	What are Loss Runs/How to Obtain

Kansas Workers Compensation Insurance Guideline Summary

What is Kansas work comp insurance?

In Kansas work comp insurance is state mandated for most employers. Kansas workers Compensation Insurance is paid for by the employer, and Kansas workers comp coverage starts on the employee's first day of employment. Employers cannot charge their employees for the cost of Kansas workmans compensation insurance.

Kansas workmans comp insurance pays medical, disability, occupational diseases and other benefits to eligible employees who are injured at work. Typical benefits include medical care, lost wages, disability payments, and death benefits.

Kansas work comp insurance costs vary for individual businesses. Rates are dependent upon the occupational risk, annual payroll, and the employer's previous workers compensation losses. Employers are allowed to purchase cheap or the cheapest Kansas workers compensation insurance coverage available.

Before workers comp insurance Kansas employees were required to prove negligence on the part of their employer for injuries sustained while on the job before they could receive compensation for those injuries. The uncertainty in the outcome of such lawsuits for both the employer and employee led to the development of Kansas workmans compensation laws. In exchange for complying with Kansas workmans comp laws, employers became immune from employee lawsuits. In exchange for giving up their right to file suit, employees no longer had to establish employer negligence and were guaranteed benefits and relief for their job-related injuries. The predictability in the outcome provided by Kansas work comp insurance proved beneficial to all parties.

Kansas employers who elect not to purchase workers compensation coverage are still responsible for providing compensation to employees for injuries sustained on the job. In addition, they are not afforded the protection of immunity from employee lawsuits provided within workers comp legislation. Injured employees are no longer bound by this legislation, and are free to bring suit against their employer for the injuries they sustained. Defined benefit limits no longer apply. In short, injured employees are free to sue their uninsured employer for any amounts their attorney may recommend. The employer must defend against that suit with his or her own financial resources. Further, failure to pay required workmans compensation benefits when required can result in substantial penalties and fines. As stated previously, it is the certainty in the outcome that makes Kansas workmans comp insurance beneficial to all parties.

The definition of an employee is broad. An employer trying to determine whether a worker is an employee or independent contractor should first consult the Department of Labor, the Internal Revenue Service, and their Kansas work comp insurance company. Courts typically try to find coverage for an injured worker. Verbal and written contracts between employers and workers are unenforceable and invalid if they are counter to existing state and federal regulations. Often an injured worker will exhaust all means of redress when they are unable to work and generate an income.

When is a Kansas employer required to purchase workers comp insurance?

The present workers comp law covers all Kansas employers except for those in certain agricultural areas or those with gross annual payroll of less than $20,000. All payroll, including executive officers, is taken into account, including that paid in Kansas or elsewhere.

If the Kansas employer is a sole proprietor or a partnership, the wages paid to the owners and any of their family members are not used in the computation of the $20,000.

Does Kansas workmans compensation insurance cover corporate officers, partners and sole proprietors?

Kansas sole proprietors and partners are automatically excluded from their business' workers compensation insurance policy. They can elect to be included for coverage by making a formal request to their work comp insurance company.

Corporate officers with less than a 10% ownership position in their company are treated as regular employees, and must be included for coverage.

Corporate officers with a 10% or greater ownership position in the company are also treated as employees. However they can elect to exclude themselves from coverage by making a formal request to their insurance company.

If Sole Proprietors or Partners include themselves for coverage how much payroll do they report?

In Kansas Sole Proprietors or Partners who include themselves for work comp coverage must report a mandatory $35,600 annual payroll for themselves in 2006 regardless of what their true wages may be.

If corporate officers include themselves for coverage how much payroll do they report?

In Kansas corporate officers that include themselves for coverage on their work comp policy must report a minimum payroll of $300 per week and a maximum of $2500 per week. The net result is that Kansas corporate officers will be resposible for work comp premium on at least $15,600 of annual payroll, and no more than $130,000 of annual payroll.

Often corporate officers will exclude themselves from coverage. However, the cost to be included is relatively small when a the clerical class code 8810 applies. Carefull consideration should be given in deciding whether or not to be included or excluded on a Kansas workers compensation insurance policy.

What is considered "payroll"?

Payroll includes but is not limited to wages, salaries, commissions, bonuses, overtime at straight pay, vacation pay and sick pay. The rules for defining work comp payroll are complicated. Contact us for a free copy of the complete Kansas payroll definition.

Does Kansas require LLC members to be covered by Kansas workmans comp insurance?

In Kansas LLC members can elect to be excluded from coverage. More information for this topic is being developed. It will be published soon.

Do family members need to be covered by Kansas work comp insurance?

In Kansas family members who are not true owners of the company or who do not meet the 10% ownership test for corporations must be included in the coverage. They cannot elect to be excluded.

What are my responsibilities as an employer under Kansas workers compensation regulations?

Intentional failure to provide workers compensation payment in one of the above ways is a Class A misdemeanor in Kansas, and subjects the employer to civil penalty in an amount twice the annual premium the employer would have paid for workers compensation insurance or $25,000 whichever amount if greater.

Most Kansas employers are required by law to provide for the payment of workers compensation claims at no expense to the employee. Employers may satisfy this requirement in one of three ways:

Workers compensation insurance obtained from an insurance carrier licensed to sell work comp insurance in Kansas at the best prices available.

An employer may provide self-insurance by demonstrating to the state of Kansas the financial ability to pay any work comp claims that might arise. This self-insurance workers compensation program must be administered by the Kansas Division of Workers Compensation.

A group of employers meeting certain statutory requirements may form a self-insurance workers compensation program to jointly insure their ability to pay claims. This program is administered by the Kansas Insurance Department.

Do all insurance companies charge the same rates for Kansas workers comp insurance?

A new rating structure in effect since 1995 allows workers compensation insurance coverage to be provided by private insurance companies on a competitive basis. Employers can shop for the best price on work comp. Premiums are determined by applying the rate for a specific occupation, per $100 of payroll, to the annual wage per employee. Contact CheapWorkComp.com to obtain a free Kansas rate chart and the best prices on workers compensation insurance at 913-345-0440.

Work comp insurance costs vary for individual businesses and are dependent upon the type of employment occupational risk, estimated annual payroll, and the company's previous workers compensation losses. Employers should shop for the best prices on workers comp insurance.

The state's administrative costs for workers comp and maintenance of the Workers Compensation Fund balance are funded by assessments on the paid losses of insurance companies, group pools, and the self-insured. These rates are set annually based on the previous calendar year's paid work comp losses and the amounts required for administration and adequate Workers Compensation Fund balance.

How to reduce the cost of your Kansas Workmans Compensation insurance.

Your insurance agent should help you determine if your job classifications codes and assigned payroll are properly identified on your Kansas workmans comp policy.

It is recommended that you shop around to find the lowest and cheapest work comp rates available to your Kansas business. Many employers are under the false impression that they can only purchase their workers compensation insurance from the same company that provides their property & liability insurance. In fact, there are a number of cheap workers comp insurance companies that provide stand-alone coverage. A Cheap Work Comp.com agent generally has access to more of these companies than most other insurance agents.

Reducing work place injuries by improving workplace safety is one of the most effective ways to lower your workmans compensation insurance premium. Plus is helps improve retention, moral and attract preferred employees.

Consider returning injured employees back to work under a modified duty program. This will reduce the overall cost of the claim thereby reducing the impact to your experience modification factor. Proceed cautiously. Consult your workmans comp insurance company and the Kansas Division of Workers Compensation for proper advice so as to avoid any federal or state work place rules.

There are varied opinions on the value of paying medical-only claims of $500 or less. Regardless of what you decide don’t forget that you must still report the injury to your Kansas work comp insurance company and the Kansas Division of Workers Compensation.

Please explain the Experience Modification Factor.

Your experience modification factor represents a unique mathematical formula that compares your loss history to your industry’s average over the past three years.

Many factors impact your final experience modification factor including your payroll classifications, your payroll, the frequency of injuries to your employees, and the dollar value of those injuries (the amount of medical and lost wage benefits paid to your injured employees as well as the amount of money held in reserve to pay continuing benefits.)

The Experience Modification Factor or Experience Mod becomes a multiplier used against your standard Kansas workmans compensation premium to calculate your final premium.

An Experience Mod of 1.0 represents your industry’s average. When multiplied against your standard premium there is no impact on your final premium.

When your 3 year loss history is lower than average your experience mod will be less than 1.00. When multiplied against your standard Kansas workmans comp premium you will see a reduction in your final premium. For example an experience modification factor of .90 means you have earned a 10% credit on your base premium. Thus you are rewarded for your efforts to reduce work place injury.

When your losses are higher than average your experience mod will exceed 1.00. For example, an experience modification factor of 1.10 means your base premium will be surcharged an additional 10%. The result is you will be penalized, with the intention that this additional premium will act as an incentive for you to reduce work place injuries.

Generally speaking, an employer who has had work comp premium in excess of $2250 for three consecutive years or a combined $4500 in premium for the past two years can expect to receive an Experience Modification Worksheet from the National Council on Compensation Insurance(NCCI).

Safety in the workplace will help you maintaining a low experience modification factor. In turn, a low experience modification factor will help you get the cheapest Kansas workers compensation insurance.

Can Experience Modification Factors be wrong or contested?

Absolutely! Your Experience Modification Factor is calculated by the National Council on Compensation Insurance (NCCI) using information provided them by your workers compensation insurance company. Mistakes do happen. There are companies that will audit your Experience Modification Factor to find errors. Usually their fee for this service is percentage of the savings they are able to identify. Follow the links below to be directed to these companies.

Link #1
Link #2
Link #3

How can I obtain the best price for Kansas workers compensation coverage?

One of the best ways to locate the best price for workers comp insurance in Kansas is to contact a Cheap Work Comp affiliate in your area.

Kansas Work Comp Insurance Resource Directory

Division of Workers Compensation

800 SW Jackson St, Suite 600

Topeka KS 66612-1227

1-800-332-0353

State of Kansas

Kansas Insurance Commissioner

420 SW 9th St  

Topeka KS 66612-1678

1-785-296-3071 

Kansas Dept of Labor

401 SW Topeka Blvd

Topeka KS 66603-3182

785-296-5000

Kansas Work Comp Documents