The Commonwealth of Kentucky may be best known for the Kentucky Derby held the first Saturday in May, its abundant bluegrass seen in practically every pasture, and its Colonel Sander’s own Kentucky Fried Chicken. But even though its agricultural industry continues to be strong, the state is making headways in automobile manufacturing, the medical profession, and many others industries. But regardless of industry, small businesses are vital to the economy of Kentucky. So along with registering your business in Kentucky, creating a business plan, and getting the necessary permits and licenses, make sure you’re covered with business insurance in Kentucky.
Standard Business Insurance Coverages in Kentucky
A business owners insurance policy in Kentucky held by an organization, generally called a BOP, is an all-encompassing insurance package for small companies that include multiple liability coverages in a single bundle. A BOP includes two leading coverages in a single policy: property insurance and general liability. Business owners insurance in Kentucky transfers potential risk away from the business proprietor to the insurance company by giving them protection for a wide range of forms of liability, which may include buildings, equipment, and liabilities for legal reasons. Ordinarily, the insurance claims that business owners insurance coverage strives to protect the organization from include loss of income, professional liability claims, valuable papers, legal liability claims, tools breakdown, fire, employee fraudulence, money and securities, and claims. The Kentucky-based entity may possibly have additional components added to the original BOP coverage depending on the potential risks of that business.
General liability insurance in Kentucky is scrupulously designed to protect small company owners from monetary loss that can come from neglectful acts, omissions, or both, caused by the organization or their employees, and which may cause physical injury or property damage. Contractual liabilities, liabilities from sold products, and accidents on the premises of the insured are some examples of exposures that might be covered under general liability coverage. The damage or harm may be a direct result of negligence or unintended. Typical liability insurance for Kentuckians may be a single policy or packaged with additional policies.
As insurance policy for a small organization that combines two or more kinds of insurance into one policy is called a package policy. In general, a package policy in the Bluegrass State will combine general liability insurance (described above) and commercial property (described below); though a package policy may be designed to encompass nearly any type of coverage, which depends largely on the needs of the business. A package policy in Kentucky is attractive for a leader of a small business since it allows for optimum flexibility to adjust to a policy mainly for the distinctive needs and risk exposures of the entity.
Commercial Property Insurance in Kentucky exists in order to provide coverage for any kind of commercial property in Lexington, Louisville, or elsewhere in Kentucky, and includes, valuable papers, building, provisions, equipment, furniture, stock, and personal property. Commercial property insurance offers protection against a variety of disasters, including hail, explosion, fire, burglary, destruction, natural disasters, and lightning strikes. Various businesses will benefit from this type of insurance, including clothes and jewelry retailers, not-for-profit entities, manufacturers, and companies in the service industry.
Any businesses with employees must comply with Kentucky laws and acquire workers’ compensation insurance. Workers’ compensation insurance in Kentucky provides coverage to organizations for employee work-related injuries or work-related illnesses for any type of business with employees working for them. Workers’ compensation insurance is a no-fault, state-mandated insurance arrangement that works to reimburse benefits to employees who received injuries or an illness while on the job. Because the state of Kentucky has a strict requirement for entities with employees to carry workers’ compensation, businesses who fail to carry it may incur severe fines and civil penalties or cause the organization to be liable for the cost of injuries sustained by their workers. Employees of a company with workers’ compensation insurance will receive medical care and lost salary coverage in exchange for the guarantee that they will not sue their employer.
Organizations that own one or more vehicles used for business operations are obliged to purchase commercial auto insurance which protects their business. Commercial auto insurance in Kentucky will offer your company and your employees financial protection for use of trucks, vans, cars, or other vehicles used for business duties. Commercial auto insurance protects against damages and medical costs that may be caused by vehicle accidents, as well as vandalism and harm from hail storms. Coverage for entities in Kentucky include vehicles that are owned, rented, leased, or hired by your enterprise, as well as vehicles owned by your workers and used for work-related duties. Because some workers use their own vehicles for business use, it is highly recommended that businesses obtain a commercial auto insurance policy; this is known as non-owned commercial auto insurance.
Commercial umbrella insurance is a worthwhile small business insurance product because it extends certain basic insurance coverages. Your company will benefit from umbrella insurance because of the fact that your existing liability policies may have coverage limits, and may not cover all expenses if a catastrophic occurrence happens. Commercial umbrella insurance in Kentucky is an essential source of coverage that fills in the holes between insurance policies and help to cover certain exclusions in your primary business liability coverage. Umbrella insurance is a great way to have extra safeguard against property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Kentucky to Consider
Errors and Omissions insurance policies provide Kentuckian organizations and persons with protection against lawsuits and claims made by clients or customers, careless acts, mistakes, and oversights made during business transactions that resulted in a loss of income or production on the part of the customer or client. Errors and Omissions insurance covers legal defense and court costs, as well as with settlements as described on the insurance contract. In the medical field, physicians require malpractice insurance, so proprietors of small companies who provide services or consulting advice, either straightforwardly or through subcontractors, necessitate errors and omissions insurance in Kentucky.
Professional liability insurance in Kentucky offers extra protection for professionals, such as financial consultants and CPA’s from being responsible for paying the entire legal cost of defending against a claim of inattention, mistakes, failure to perform, or omission made by a client as well as damages allocated in that claim. The coverage’s main focus is on the loss, which is financial in nature. Professional liability insurance may present claim coverage, even if the legal actions are unproven. Professional liability insurance in Kentucky is required by law in a variety of professional practices, including legal and health, but is also required by contract in other industries.
Employment Practices Liability Insurance (EPLI) offers organizations protection against accusations of favoritism, wrongful termination, sexual harassment, income law violations, false imprisonment, emotional distress, libel, slander, mental anguish, careless hiring and promotion decisions, and defamation claims. Employment practices liability insurance in Kentucky is based on the laws, acts, and protection from Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act — all of which the Equal Opportunity Employment Commission (EEOC) in Kentucky enforces.
Fidelity Bonds in Kentucky
Fidelity bonds in Kentucky are a type of insurance obtained by owners of small companies in order to protect against losses, including fraud, embezzlement, or theft by one worker or a group of workers. Reimbursement from professional fraudulent acts are usually not available because the money is most likely already spent, fidelity bonds benefit the company by protecting them from paying for the financial losses. Many businesses safeguard against these types of theft and fraudulent practices such as employee screening, internal controls, and careful supervision of their workers, but it is not always enough. Losses suffered from thefts of money, property, or securities are all covered under fidelity bonds insurance in Kentucky. There are three main types of fidelity bonds used in the Commonwealth of Kentucky; business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Kentucky
A surety bond is a necessary agreement or contract shared between three parties: the principal, obligee, and surety (insurance company). It represents the promise they will pay a specified sum should a party fail to complete a commitment, including fulfilling the terms of the contract. Surety bonds in Kentucky protect the beneficiary from loss if the contract is not fulfilled, while the surety company takes on the liability for nonperformance. A surety bond is typically required for financial compensation. Owners of Kentucky businesses may need a surety bond to ensure payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be eligible for licenses. Surety bonds in Kentucky are more often used in the construction industry, but are also used in other industries such as notaries public, health and fitness clubs, medical supply companies, automobile dealers, and others. Since there are a wide range of small organizations that use and need bonds, several types and features of surety bonds are available in Kentucky with a variety of guarantees.
Small business in Kentucky rules. But whether your business in a tree cutting business in Lexington or a graphics design firm in Lousiville, know that it is important to have all your “i’s” dotted and “t’s” crossed by having sound business insurance in Kentucky that meets the unique needs of your company. We want your business to grow and prosper without suffering from a devastating financial loss.