Find the Best Business Insurance Options in Kentucky
If you have a business in Kentucky, it needs the protection provided by a business insurance policy. Having enough coverage can help your business recover from major financial losses following a disaster. From employee crime to storm damage and beyond, your business is vulnerable to all kinds of threats that need to be anticipated ahead of time.
Kentucky currently has about 351,260 small businesses across the state, and all of them need coverage. Also, the state's 702,054 small business employees need to be protected by an employer's workers' compensation insurance. An independent insurance agent in Kentucky can help get you set up with all the business insurance you need. Up first, though, here's a behind-the-scenes look at business insurance in Kentucky.
Best Business Insurance Companies in Kentucky
Though you can find business insurance from many different carriers in Kentucky, you'll want to head straight for the best when it's time to shop. Choosing a quality carrier from the start can help ensure that you'll get the compensation you're entitled to from your coverage if you have to file a claim. That's why we made this list of just a few of our top recommendations for the best business insurance companies in Kentucky.
- National General Insurance: National General Insurance has been in the industry for quite some time and offers a variety of products, including small business insurance. The carrier offers 24/7 claims reporting for policyholders and has excellent ratings from both AM Best and the Better Business Bureau (BBB).
- Nationwide: Nationwide's huge catalog offers business insurance and much more. The insurance company also boasts superb ratings by both AM Best and the BBB and provides 24/7 claims reporting for policyholders.
- Amica: Amica has been in the insurance industry for quite some time and offers tons of products in addition to small business insurance and personal coverages. Amica is also rated an "A+" for financial strength by AM Best.
- Erie Insurance: Erie offers several types of business insurance and other products. The carrier is a Fortune 500 company with nearly 100 years of experience in the industry. The carrier is one of the nation's largest business insurers and has excellent ratings by AM Best and the BBB as well as 24/7 claims reporting services.
A Kentucky independent insurance agent can help you find the business coverage you need from one of these top-rated business insurance companies.
Kentucky Business Insurance Requirements
Kentucky state law doesn't require businesses to carry liability insurance or commercial property insurance, but they're still relevant coverages to consider. Businesses face the risk of potential bankruptcy after just one lawsuit if they lack liability coverage. Without commercial property coverage, you might lose your business's property or inventory permanently after a major disaster like a break-in or a fire.
However, the only kind of coverage mandated by Kentucky state law is workers' compensation. All businesses in Kentucky with at least one employee must have workers' compensation insurance to protect their staff.
Optional business insurance coverages in Kentucky include:
- Commercial auto insurance
- Business income insurance
- Professional liability insurance
- Commercial general liability insurance
- Commercial property insurance
- Cyber liability insurance
A Kentucky independent insurance agent can help you find each type of business insurance coverage your company needs.
What Business Insurance Covers in Kentucky
You'll want to get a business insurance policy that covers all aspects of your Kentucky business. This means having commercial property insurance to protect your business's physical building and inventory. You'll also need commercial vehicle insurance if your company has vehicles used for deliveries, etc. With business income insurance, your business can get reimbursed for lost income if it must temporarily close following a covered disaster like a lightning strike. What your business insurance in Kentucky specifically covers depends on the types of coverage you select for your policy.
Liability Coverage Options for Small Businesses in Kentucky
Your small business in Kentucky likely needs at least general liability insurance, but you'll also want to consider adding extra liability coverages, depending on your company's operations and risks. These are the main types of liability coverage for small businesses in Kentucky:
- Professional liability insurance: If your business provides a faulty service or offers advice or consulting that results in damage or injury to a third party like a customer, this coverage can help protect against lawsuit costs.
- Commercial general liability insurance: If your business gets sued by a third party for bodily injury or personal property damage claims, this coverage can help protect against lawsuit costs.
- Cyber liability insurance: If your business suffers from a data breach or cyber attack that exposes or distributes private information, this coverage can help protect against lawsuit costs and other related financial losses.
A Kentucky independent insurance agent can help you get all the liability coverages your business needs most.
Property Coverage Options for Small Businesses in Kentucky
If your business has a physical building or inventory, you'll likely want property coverage.
- Commercial property insurance: Protects against financial losses related to damage or the theft or destruction of your commercial property, including physical buildings and inventory.
Your independent insurance agent in Kentucky can help you get your business equipped with the right amount of commercial property insurance.
Other Insurance Options for Small Business Owners in Kentucky
Your business may still need more coverage depending on its operations and risk level. A couple of commonly selected business insurance coverages for businesses in Kentucky are:
- Commercial auto insurance: If one of your employees causes an accident with a company vehicle or your company vehicle gets stolen or vandalized, this coverage can help reimburse the financial losses.
- Business income insurance: If your business must shut down temporarily following a covered disaster like a lightning strike, this coverage can help reimburse lost income during that time.
An independent insurance agent in Kentucky can help you find all the additional types of business insurance your company requires.
Average Cost of Business Insurance in Kentucky
Average costs of business insurance in Kentucky vary based on many factors, including your business's operations and risks. The type of business you run impacts your policy costs because if you're in a riskier industry like construction, you're considered more of a risk to insure, and thus will pay higher premiums.
The size of your business also impacts rates because larger businesses need more coverage for property, employees, etc. Also, your company's exact location can impact your rates due to weather risks in the area, property values, and more. The number of employees your business has, the types of coverage selected, the policy's coverage limits and other options are other factors that can all impact your policy rates as well.
National Business Insurance Stats
Number of businesses in the US: 30,819,176
Burglary rate per 1,000 residents in the US: 3.76
Auto theft rate per 1,000 vehicles in the US: 2.29
| City | No. of businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Bowling Green | 6,366 | 5.54 | 3.65 |
| Covington | 3,051 | 4.93 | 4.14 |
| Elizabethtown | 2,634 | 4.60 | 2.40 |
| Frankfort | 2,180 | 6.53 | 2.56 |
| Henderson | 2,164 | 3.95 | 3.38 |
| Lebanon | 528 | 3.49 | 1.75 |
| Mayfield | 1,006 | 8.02 | 2.64 |
How Does Your Kentucky City Measure Up?
Property insurance: Like severe weather events and other disasters, property crimes such as theft and arson can lead to large business losses if you don't have the right insurance. The crime rate in Benton can affect how insurers calculate your coverage rates.
Commercial auto insurance: If your business has company-owned vehicles, they must be covered by an appropriate commercial auto policy. Insurance companies will base rates on a number of factors, including the number and types of vehicles insured and the risk of collisions and theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Benton, KY look like.
Manufacturing Industry: $4,540/year
Educational Services: $220/year
Property insurance: With a rather high rate of property crimes in this city, Bowling Green business owners may find their rates for property coverage a bit higher than those in statistically safer cities. Commercial property insurance covers business assets against loss and damage caused by numerous disasters like storm damage and property crime.
Commercial auto insurance: If your Bowling Green business has company-owned vehicles, they must be covered by an appropriate commercial auto policy. Insurance companies base your rates on a number of factors, including the number and types of vehicles insured and the risk of collisions and theft in your city. Add comprehensive insurance to get coverage against theft and other non-collision-related loss and damage.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' compensation costs for the two leading industries in Bowling Green, KY look like.
Manufacturing Industry: $4,540/year
Retail Trade Industry: $940/year
Property insurance: The low rate of property crime in Central City can help keep your costs for coverage against theft low. However, you may also want to cover your business-owned property against other hazards such as severe weather, fires, floods, and more.
Commercial auto insurance: If your Central City business uses company-owned vehicles, you'll need commercial auto insurance in your business insurance policy. By including the optional comprehensive coverage, damage caused by non-collision-related events like fire, floods, falling objects, and theft is also covered.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Central City, KY look like.
Manufacturing Industry: $4,540/year
Mining, Quarrying, and Oil & Gas Extraction Industry: $14,820/year
Property insurance: Your Covington business needs protection against theft, fires, floods, explosions, and employee errors. To prevent your company from suffering large financial losses, make sure your business assets are sufficiently covered against these risks.
Commercial auto insurance: Business-owned vehicles must be covered by a commercial auto insurance policy. Rates are based on a number of factors, including the number and types of vehicles insured and the risk of collisions in your city. Adding optional comprehensive insurance provides coverage against non-collision damage including by disasters like flood, fire, and theft.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Covington, KY look like.
Manufacturing Industry: $4,540/year
Accommodation and Food Services Industry: $890/year
Property insurance: Not only can severe weather events and man-made disasters cause excessive property loss, but so can property crimes like theft and arson. The relatively low crime rate in Hopkinsville can help manage your theft-loss protection costs.
Commercial auto insurance: If your business owns a vehicle or a fleet of vehicles, you will need commercial auto insurance. Rates are based on a number of factors, including the number and types of vehicles insured, the number and frequency of miles you drive, and the risk of collisions in your city. Adding comprehensive insurance can cover vehicle theft and other non-collision disasters.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Hopkinsville, KY look like.
Manufacturing Industry: $4,540/year
Retail Trade Industry: $940/year
Property insurance: The property owned by your Jefferson-based business must be properly covered against disasters like fires, floods, and severe weather events. Property crimes like theft and arson also require coverage. The low rate of property crimes in this city can help keep rates manageable.
Commercial auto insurance: If your business owns a vehicle or a fleet of vehicles, you need to have commercial auto insurance. Rates are influenced by the types of vehicles insured and the risk of collisions in and near Jefferson. Adding the optional comprehensive coverage provides protection against non-collision losses caused by threats like falling objects, fires, floods, and theft.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Jefferson, KY look like.
Retail Trade Industry: $940/year
Manufacturing Industry: $4,540/year
Property insurance: If your company owns a lot of expensive property, such as machinery, tools, inventory, and merchandise, these assets must be sufficiently covered by commercial property insurance. Rates are affected by your company's risk of disaster.
Commercial auto insurance: Business-owned vehicles must be covered by commercial auto insurance. With the high number of vehicle thefts in Lexington, it may be wise to include optional comprehensive coverage in your policy. This can provide compensation if your vehicles get stolen or damaged by a non-collision-related event.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Lexington, KY look like.
Manufacturing Industry: $4,540/year
Retail Trade Industry: $940/year
Property insurance: In addition to damage caused by severe weather and other disasters, property crimes like theft and arson can lead to expensive business losses. Thus, your company must be protected with the right property insurance coverage.
Commercial auto insurance: Vehicle theft is a concern in every city, including Louisville. If your company owns vehicles, look into comprehensive coverage to protect your fleet against theft and other non-collision damage.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Louisville, KY look like.
Construction Industry: $10,300/year
Accommodation and Food Services Industry: $890/year
Property insurance: The property crime rate in Mount Sterling is higher than the national average, and this may influence your rates for property insurance coverage. It's also critical to cover your business assets against major disasters such as fire, flood, severe windstorms, and thunderstorms.
Commercial auto insurance: Business-owned vehicles must be covered by a commercial auto insurance policy. Rates are based on several factors, including the number and type of vehicles insured, as well as the risk of collisions in your city. Adding optional comprehensive insurance provides coverage against non-collision damage caused by fire, flood, and theft.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Mount Sterling, KY look like.
Manufacturing Industry: $4,540/year
Accommodation and Food Services Industry: $890/year
Property insurance: Make sure to sufficiently cover all business assets with commercial property insurance. Some factors that influence your rates for this coverage include the value of your business property, the risk of severe weather events, and the property crime rate in Owensboro. The crime rate in Owensboro is slightly lower than the national rate, and this can help keep coverage costs affordable.
Commercial auto insurance: If you have business-owned vehicles, they need to be covered by commercial auto insurance. Though the risk of car theft in Owensboro is slightly lower than the national average, you might consider comprehensive coverage, which protects against theft and other non-collision damage such as that caused by vandalism, falling objects, fires, and floods.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured on the job. It's required for most Kentucky employers with at least one employee. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Owensboro, KY look like.
Manufacturing Industry: $4,540/year
Retail Trade Industry: $940/year
Popular Questions About Business Insurance in Kentucky
Business insurance costs vary in Kentucky depending on a number of different factors. These include your specific business:
- Size
- Location
- Number of employees
- Annual payroll
- Annual revenue
- Risk level
- Operations
State law in Kentucky only requires businesses to carry workers' compensation if they have at least one employee. Though additional coverages are technically optional, you'll want to at least strongly consider adding much more protection to your business insurance policy to help ensure your company won't face bankruptcy after a disaster.
What your Kentucky business insurance covers depends on which coverages you add to your policy. A typical business insurance policy in Kentucky covers company vehicles, commercial property, liability risks, lost income, professional errors, and more.
Small business liability insurance in Kentucky reimburses companies for financial losses caused by lawsuits filed by third parties. If a third party like a customer claims your business caused them property damage or bodily injury, this coverage can pay for attorney, court, and settlement costs if you get sued.
Yes, small business health insurance plans are available in Kentucky for those with 50 or fewer employees. You can find out more information about if your specific business qualifies for this coverage on the state's official website.
Our research found that the best small business insurance companies in Kentucky are National General Insurance, Nationwide, Amica, and Erie Insurance. We selected these carriers thanks to their excellent customer service and financial strength ratings, as well as their coverage options, rates, and more.