Insurance for Small Business Owners in Kansas

Commercial Auto Insurance.

If your small business in Kansas owns vehicles, you are required to purchase commercial auto insurance. This requirement includes coverage for bodily injury, property damage, and personal injury protection, and uninsured/underinsured motorist coverage. The minimum liability limits you must purchase depend on whether a governmental agency regulates your operations. 

Workers’ Compensation Insurance.

Kansas requires most small businesses to carry Workers’ Compensation coverage for their employees. The law applies to all Kansas employers except for certain agricultural businesses or those with a gross annual payroll of less than $20,000. For that sum, all payroll is taken into account, including payroll paid outside of the state. Kansas offers a self-insurance program, but you must demonstrate financial ability to pay any claims that may arise. Otherwise, you’ll want to look for a licensed insurance carrier like B2Z to satisfy the workers’ compensation requirement. An accident or illness related to an employee’s work can become costly very quickly. 

Small Business Owner’s Insurance.

A Business Owner’s Policy (or BOP) is a cost-saving package policy that bundles both property insurance and general liability into one convenient, comprehensive policy for small business owners. A BOP typically covers customer medical expenses for onsite third-party accidents and advertising damage claims, and losses and damages related to buildings used for business purposes.

General Liability Insurance.

While a BOP combines this coverage with property insurance, sometimes General Liability is sought as a separate minimum coverage. If you lease space for your Kansas small business, the commercial property contract may require General Liability Insurance. General Liability Insurance helps ease the financial burden of customer injury and property damage claims, as well as slander and libel lawsuits. 

Professional Liability Insurance.

Professional Liability coverage is also referred to as “errors and omissions insurance” or “E&O.” This insurance type focuses on work mistakes and errors, missed deadlines, incomplete work, and professional negligence lawsuits. Professional Liability coverage is ideal for small businesses in Kansas that provide expertise as a service, like financial advice, architecture, design, or hairstyle services, as it can protect them from related damage claims.

Cyber Liability Insurance.

43% of cyber attacks target small businesses, and 60% of small businesses that suffer a cyber attack go out of business within six months of the attack. Cyber Liability coverage is recommended for Kansas small businesses to help pay for customer notification and fraud monitoring costs following a cyberattack, as well as associated legal fees. This helps businesses recover from ransomware, malicious hacking, and other common cyberattacks.