Almost all employers in Kentucky are required to carry workers' compensation insurance to cover medical costs and some of the lost wages caused by an employee's injury on the job. In fact, according to the Kentucky Department of Insurance, this includes businesses with at least one employee.
The Kentucky Labor Cabinet notes that state law does have guidelines for what injuries qualify. Basically, any employee who is working his or her regular schedule and sustains an injury while performing job duties is covered by WC insurance. These straightforward circumstances are not always present. However, as long as the accident happened during the course of employment, it would still be covered, even if the employee is working off-site, outside of normal business hours or is taking care of another employee's duties.
If the employee is impaired by drugs or alcohol while at work and has an accident, causes the accident through horseplay or intentionally causes the accident, WC insurance will not cover the injury. A person who sustains an injury that is due to the effects of getting older would not be eligible for WC, either. An accident between home and work would not be covered by WC, but one that occurs in a company car driven to conduct the employer's business would be covered.
The injury itself must create a physical change that is medically verifiable. Employees who undergo psychological trauma are not eligible for WC for those damages unless there is also a physical injury, and that is the cause.