Big news again for employers watching Kentucky’s workers’ comp rates heading into 2026.
The Kentucky Department of Insurance has announced another decrease in workers’ compensation loss costs for policies effective in 2026. That’s 20 straight years of overall loss cost reductions in Kentucky.
That’s a lot of jargon if you don’t live in the insurance world. So let’s talk about what this really means for your business and what you can expect to pay for workers’ comp heading into 2026.
I’m Adam Sheridan with Reed Brothers Insurance. One area we focus on every single day is workers’ compensation—whether you’re a one-person operation or a company with hundreds of employees spread across the state.
What Just Happened to Kentucky’s Workers’ Comp Rates?
The Kentucky Department of Insurance approved the latest workers’ comp loss cost filing that insurance companies use to help build their workers’ comp rates.
The headline: an average loss cost decrease of 9.7% for 2026.
What does that mean? The underlying cost insurers expect to pay for claims is declining again.
How Loss Costs Shape Kentucky’s Workers’ Comp Rates
You don’t wake up in the morning excited to think about loss costs, but they matter.
Think of loss costs as the raw, wholesale cost of claims:
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Low-risk jobs, such as office/clerical work, have very low loss costs.
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Higher-risk jobs—manufacturing, contractors, trucking, healthcare, etc.—have higher loss costs because injuries are more likely or more severe.
Insurance companies take these approved loss costs and then apply their own loss cost multipliers (to cover expenses, profit, and their own view of risk) to arrive at the base rate you see on your policy. Over time, those changes in loss costs shape Kentucky’s workers’ comp rates.
Will Your Kentucky Workers’ Comp Rates Go Down in 2026?
Here’s the part you actually care about.
Will your bill go down?
Maybe. But it’s not guaranteed.
Kentucky is a very competitive workers’ comp marketplace. Each insurance company:
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Starts with the approved loss cost,
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Applies its own multiplier, and
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Layers on your business-specific factors.
So even though the underlying loss cost is dropping again, your final premium can still:
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Go down,
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Stay about the same, or
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It may even go up in some situations.
Here are the big levers that will impact your 2026 premium, and how Kentucky’s workers’ comp rates show up on your bill:
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Class codes & payroll – Has your mix of employees changed? Are you adding higher-risk positions or growing payroll?
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Your insurance company’s multiplier & pricing strategy – Some carriers will pass through the full benefit of the loss cost decrease. Others may adjust multipliers or credits.
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Your claims history/experience mod – For many employers paying $5,000+ in annual workers’ comp premiums, your experience modification factor (mod) can move the needle more than the statewide rate change.
The Experience Mod: Your Biggest Wildcard
If you’ve had little or no claims, the continued statewide reductions are great news. You’re starting from a cleaner base, and the competition among carriers may give you additional pricing power.
If you’ve had more frequent or severe claims in the last 3–5 years, your story is different:
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Your experience mod can still push your premium up, even while loss costs go down.
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The 2026 decrease in loss costs may help offset some of that increase—but it won’t erase the impact of claims.
If your mod has crept up, this is exactly the time to:
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Review your claims and loss runs,
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Tighten up safety and return-to-work practices, and
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Make sure your current carrier is the right fit for your risk.
That’s where we come in.
What Smart Employers Should Do Before 2026 Renewals
Here’s a quick checklist you can walk through before your next workers’ comp renewal:
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Pull your current policy and experience mod worksheet
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Know your current mod and how close you are to a credit or debit.
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Review 3–5 years of loss runs
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Are there open claims that need to be closed or reserves that look too high?
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Are you seeing repeat injuries (same body part, same task, same shift)?
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Confirm your class codes and payroll estimates
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Make sure employees are classified correctly—especially if your operations have changed.
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Verify subcontractor vs. W-2 status if you use a lot of 1099 labor.
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Have your account marketed to multiple carriers
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With another statewide decrease in loss costs, it’s a great time to make carriers compete for your business.
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A strong safety story, along with a clean loss history, can unlock additional credits.
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Build or tighten your safety & return-to-work plan
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Carriers reward employers who are serious about safety and getting injured employees back to work quickly.
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All of this helps you control your individual risk picture while the broader trend in Kentucky’s workers’ comp rates continues to move in your favor.
When You Really Need to Talk to an Agent
You should absolutely reach out if:
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Your premium has jumped even though you heard “rates are going down.”
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Your experience mod is over 1.00, or you’re not sure how it’s calculated.
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You’ve grown rapidly, added locations, or changed the kind of work your employees are doing.
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You want someone to translate all of this into “What should I actually do next?”
That’s what we do every day.
Next Steps
If you own a business, have employees in Kentucky, and want a second set of eyes on your workers’ comp program before 2026 renewals:
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Call us at 606-679-6311, or
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Email info@rbisomerset.com.
We’ll help you:
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Make sense of your current program,
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Spot the big drivers of your workers’ comp cost, and
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See if the new 2026 loss cost decrease can translate into actual savings for your business.
We look forward to working with you.
