KRS § 342.610 states that every employer shall be liable for compensation for injury, occupational disease, or death without regard to fault as a cause of the injury, occupational disease, or death.  According to KRS § 342.340, every employer shall either insure and keep insured the liability for compensation in some corporation, association, or organization authorized to transact the business of workers’ compensation insurance in the state or shall furnish satisfactory proof of the financial ability to pay the compensation directly to the executive director in manner as provided for in the statute.

Moreover, no state contract shall be awarded to any person until that person assures by affidavit that all contractors, subcontractors employed or to be employed shall be in compliance with Kentucky requirements for workers’ compensation insurance.  Types of work for which coverage is required are building, construction, reconstruction, renovation, demolition, or maintenance, or any activity related thereto.  Kentucky law further states that a contractor who subcontracts all or any part of a contract and his/her carrier shall be liable for the payment of compensation to the employees of the subcontractor, unless the subcontractor primarily liable for the payment of such compensation has secured the payment of compensation.  Any contractor or carrier who shall become liable for such compensation may recover the amount of such compensation paid and necessary expenses from the primarily liable subcontractor.

Liability for compensation shall not apply where injury, occupational disease, or death to the employee was proximately caused primarily by voluntary intoxication, or by willful intention to injure or kill oneself or another.  A claim can be reported in the same manner as any workers’ compensation claim, as per the Workers’ Compensation Manual.