Buying workers’ compensation for:


State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Kansas, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All Kansas employers are required to have Workers’ Compensation coverage except for those in certain agricultural pursuits or those with a gross annual payroll of $20,000 or less. All payroll is taken into account, including that paid in Kansas or elsewhere. If the 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 gross annual payroll.

Elections in or out of the Workers Compensation Act are options available to employers or employees. Depending on the circumstances, options may be available for:

  • non-covered employers e.g., those with payrolls of $20,000 or less, or in certain agricultural pursuits;
  • corporate employees owning 10 percent or more of stock;
  • individuals, proprietors, or partnerships;
  • employers seeking coverage for volunteers and other non-covered workers; and
  • volunteer directors, officers, or trustees of a nonprofit organization.

EXAMPLE: A two-person partnership has two employees a family member and a non-family member and an annual payroll of $15,000. The partnership may elect to purchase coverage under the Act and to extend such coverage to both employees. The partners are not covered because they are considered to be the employer.

Employment categories excluded from the law are:

  • certain agricultural pursuits;
  • realtors who qualify as independent contractors;
  • employers with gross annual payrolls of $20,000 or less;
  • firefighters belonging to a firefighters relief association which has waived coverage under the workers compensation law; and
  • certain owner-operator vehicle drivers covered by their own occupational accident insurance policy

Factors that Impact Coverage

  • You are an independent contractor with no employees: You may choose to exempt yourself from carrying workers’ compensation insurance. Once your total gross payroll exceeds $20,000, you must provide workers’ compensation insurance to employees.
  • You are a sole proprietor or partner: In Kansas, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are considered an employee in Kansas and are included in coverage. If you own 10% or more of the business you may elect to exclude yourself.
  • You are a member of an LLC: Kansas treats you like a partner and excludes you from coverage, but you have the option to include yourself.

Failure to Secure Compensation

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

Proof of Coverage is Required

Employers must post written notice advising employees what to do in case of injury.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Key Resources

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.