Kentucky is home to more than 350,000 small businesses and self-employed professionals.1 These companies span all industries, from small construction offices to restaurants to real estate agents. They all need business insurance to stay safe.
Business insurance is critical because it can provide a financial safety net after unexpected events and sudden costs resulting from:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.*
Continue reading to learn about important types of business insurance in the Bluegrass State. Or get a free instant quote to see customized coverage options for your business.
Kentucky insurance companies offer coverage in customized packages that you can build around your business insurance needs. Based on your profession and employment practices, your coverage package may include different types of insurance to help in different kinds of situations.
For example, a Paducah plumbing company might need general liability coverage to help cover damages if it’s accused of injuring someone or destroying property, and commercial auto insurance to help pay for a potential accident in the company van.
While a small accounting firm in Henderson might purchase professional liability insurance to protect against claims of professional negligence that cause financial losses, and commercial property coverage to help pay for repair and damage to their business in case of fire, wind or water damage.
Both of these businesses will also likely need Kentucky workers’ compensation insurance to help cover medical costs and lost wages when employees are injured on the job.
General liability insurance, also known as business liability insurance, is a prudent purchase for all small businesses in Kentucky. It can help protect your company if someone says that you caused an injury or property damage.
For instance, a building owner in Louisville accuses a construction company of improperly fixing a steel column during renovations, which requires expensive repairs to remediate structural damage.
General liability insurance in Kentucky could help the construction company pay to repair the damage. If the owner sues, it could also help cover court costs, legal fees and any damages for which the construction company is held responsible.
Cleaning and construction companies may want to add tools and equipment coverage to their general liability business insurance in Kentucky. This coverage upgrade helps pay to repair or replace essential business gear that is damaged, lost or stolen.
State law requires most businesses with employees to carry Kentucky workers’ compensation insurance.
This type of coverage can help pay medical expenses, including hospital and physical rehabilitation bills, after employees are hurt on the job. It can also cover a portion of lost wages while the injured employee isn’t able to report to work.
For instance, an employee of an Owensboro-based retail store falls from a ladder in the stockroom, breaks an arm and is sidelined for a month. Workers’ comp coverage could help cover the employee’s medical expenses and lost wages.
Did you know that personal auto policies won’t cover accidents that happen while behind the wheel for business purposes?
That’s why you’ll need commercial auto insurance if your business involves driving. It can help pay for property damage and medical bills that result from accidents.
For example, two workers at a window-washing business in Bowling Green hit a guardrail while returning from a job, resulting in major damages to a company-owned van. Commercial auto insurance could help pay to repair the van and for medical bills if the workers suffered bodily injury.
If your business asks employees to drive their own cars for work or rent vehicles, you’ll want an optional add-on called hired and non-owned auto coverage. It can help pay for accident damages in vehicles not titled to your business.
Kentucky commercial property insurance, sometimes called business property insurance, can help pay for business property that’s damaged or destroyed after a covered event, such as vandalism, water, fire or wind incidents.
For example, a kitchen fire at a Frankfort casual dining restaurant damages the cooking station. Commercial property coverage could help pay to repair the grill and replace equipment that was ruined.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Carriers often don’t cover flood and hurricane damage.
Small businesses, especially those in professional services fields, may want professional liability coverage, which is also known as E&O or errors and omissions insurance.
This type of policy can help protect business owners if they face claims of poor or incomplete work that causes a client or other party financial losses. It can help pay for damages even if the accusations are unfounded.
For example, if a Lexington real estate agent fails to disclose a property flaw, and the buyer later spends thousands of dollars to fix it, professional liability could help cover legal costs and pay for some damages.
Business insurance costs in Kentucky can vary greatly. This is because each small company has unique business insurance requirements determined by how they do business.
Here are some of the factors that will affect how much you’ll pay for your commercial insurance package:
Insurance costs are influenced by your industry and associated risks. For example, a landscaper, who is more likely to be injured or cause property damage, will probably pay a higher premium than a software developer who spends all day at a desk.
Business insurance will cost more as you add policies to your coverage package. Most businesses need more than one type of policy to protect them across different situations.
Workers’ comp insurance pricing is based on your employee headcount. It’s important to have your exact full-time and part-time worker count when you request a quote.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Kentucky:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
Learn more about insurance options in the states where you work.