Workers' compensation is typically carried solely by the employer, who usually purchases workers' compensation insurance. The cost of workers' compensation coverage cannot be charged to the employee.

Even if you are classified as an exempt employer you should consider purchasing a policy of workers' compensation insurance. It typically is very affordable coverage that could save you a bundle if someone got injured while working for you. Not only is workers' compensation coverage the right thing to do, it can protect you and your business from a devastating claim in its absence.
 

You'll also need other general liability insurance for your business. It's not always your employee who poses potential liability. If an employee of an independent contractor you hired to work on a project is injured, and has not purchased coverage for the employee that injured employee may be able to recover from you for his or her injuries. Under Kentucky law, you may be liable.

Lastly, as an employer you have a responsibility to your employees. In the event of an on the job injury do not attempt to prevent the employee from filing a valid claim.