ClearPath Mutual Insurance Company was formed on January 1, 2018 and is domiciled in Louisville, Kentucky. The company is a result of its reorganization from KESA, The Kentucky Workers’ Compensation Fund, which was a self-insured workers’ compensation fund. KESA decided to reorganize as a mutual because the mutual company structure allows so much more flexibility and greater opportunities for growth. As a mutual, ClearPath can provide better service to its agents and policyholders and offer several key benefits:
ClearPath Mutual has approximately 7,300 policyholders and nearly $60 million in premiums, making it one of the largest and most financially stable providers of workers’ compensation in Kentucky. Its policyholders pay a premium based on their exposures, classification codes, payroll, and experience modification. Premiums are then used to pay claims and administrative expenses, such as loss prevention services and legal, actuarial, and management costs.
- The elimination of joint and several liability.
- The ability to eventually write coverage outside the boundaries of Kentucky.
- The opportunity for greater growth and scalability.
- The improved organizational and financial flexibility needed to remain financially strong.