Insurance for Small Business Owners in Kentucky

Commercial Auto Insurance.

All drivers in Kentucky must have sufficient automobile insurance to cover property damage and injuries, including commercial drivers. A policy with a single limit of $60,000 is acceptable. Alternatively, drivers must carry minimum benefit amounts for bodily injury liability of $25,000 per person/$50,000 per accident, and property damage liability of $25,000 per accident minimum. 

Workers’ Compensation Insurance.

While Kentucky does not offer a state-run workers’ compensation insurance program, workers’ comp is still required for small businesses with only a few exceptions. An employee accident or illness related to their work can become costly very quickly. Workers’ Compensation typically covers the related healthcare and legal costs, providing relief for employees and businesses. In exchange for carrying this required coverage, employees agree not to sue your company over the accident or related illness. 

Unemployment Insurance.

All Kentucky employers must register with the Kentucky Office of Employment and Training to establish an unemployment insurance account. Your business pays a computed tax rate into that account. 

Small Business Owner’s Insurance.

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

General Liability Insurance.

A BOP combines this coverage with property insurance. Sometimes general liability insurance is sought as a separate minimum coverage instead. If your Kentucky small business leases space, the commercial property contract may require General Liability Insurance. This insurance helps ease the financial burden of customer injury and property damage claims, as well as slander and libel lawsuits. 

Professional Liability Insurance.

Also referred to as “errors and omissions insurance," professional liability insurance coverage focuses on work mistakes and errors, missed deadlines, incomplete work, and professional negligence lawsuits. This coverage is ideal for Kentucky small businesses providing expertise as a service, like financial advice, architecture, design, or hairstyle services, as it can protect them from related damage claims.

Cyber Liability Insurance.

Small businesses are an attractive target for cybercriminals. 60% of small businesses that have suffered a cyber attack go out of business within 6 months of the attack. Cyber liability coverage is recommended for Kentucky small businesses to help businesses recover from malicious hacking, ransomware, and other cyberattacks by paying related customer notification and fraud monitoring costs, as well as associated legal fees.