Popular QuestionsPopular Questions About Kentucky Business Insurance

Why should I have Kentucky business insurance?

In 2018 small businesses in Kentucky made $289.7 billion. Without a comprehensive business insurance plan, companies in Kentucky may face large financial losses that eat into their revenues. 

Knowledgeable independent insurance agents can help you identify and mitigate your business's specific risks with a suitable commercial insurance policy package.

How have other business owners used their business insurance?

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft Or Burglary: Average Cost Per Claim - $8,000
  • Water Damage & Freezing Pipes: Average Cost Per Claim - $17,000
  • Wind & Hail Damage: Average Cost Per Claim - $26,000
  • Fire Damage: Average Cost Per Claim - $35,000
  • Customer Slip & Fall: Average Cost Per Claim - $20,000
How does Kentucky business insurance help me?

Kentucky commercial insurance is designed to protect your company from large financial losses associated with property damage, forced long-term closures, liability lawsuits and other exposures faced by businesses in your particular industry.

Here’s what a standard business insurance policy should do:

Pay For Damage To Your Building

  • We call this “Commercial Property Insurance.”
  • Example: A tree falls on your office building.

Pay For Damage To Your Business Property

  • We call this “Business Personal Property Insurance.”
  • Example: A fire destroys all your computers.

Pay For Damage To Someone Else’s Property

  • We call this “General Liability Insurance.”
  • Example: A contractor does a poor job of installing a cabinet, resulting in its falling and breaking homeowner's kitchenware.

Pay For Someone Else’s Medical Bills

  • We also call this “General Liability Insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay For Accidents in Company Vehicles

  • We call this “Commercial Auto Insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay For Employee Injuries & Compensation

  • We also call this “Workers' Compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

In some cases, these standard coverages are not enough to properly protect a business against all of its potential risks. Your business may have specific exposures that are unique to its industry, and you may therefore benefit from adding additional coverage options to your commercial insurance plan.

To ensure your company is properly insured, we can match you with an independent insurance agent who specializes in covering businesses that operate in your particular industry.

What Insurance Does Kentucky Require for Businesses?

While a commercial insurance policy is not necessarily required of business owners, certain aspects of it may be. 

For example, in this state, businesses that have at least one employee must carry workers' compensation insurance. Additionally, businesses that use company-owned vehicles must carry commercial auto insurance, and companies with at least 50 full-time employees must provide them with affordable health care coverage. 

To learn more about the insurance types that you may need to carry for your business, speak with a local Trusted Choice® agent.

How much does Kentucky business insurance cost?

It primarily depends on how risky your business is. The riskier your business is, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year
How do I find the best business insurance in Kentucky?

Business insurance rates are calculated by factoring in a number of variables such as the potential for damage to your business property, your liability coverage needs and the amount and types of coverage you wish to include in your policy package. Policies can vary significantly by business industry, so it is to your advantage to speak with an experienced insurance agent to get help building a suitable policy for your business.

It’s usually wise to work with an independent agent in Kentucky since they have access to multiple insurance companies. Sometimes its difficult to find an insurance company who will cover your business.

  • There are 319 independent agents in Kentucky who are ready to help.
  • In 2017 our agents helped 1,751 people.
Top Business Insurance Companies in Kentucky

An independent insurance agent compares policies from multiple companies to find the best coverage for your needs.

liberty mutual insurance
westfield insurance
cna insurance
berkley mid-atlantic group

InformationFind the Best Insurance in Your City

How does your city measure up?

  • Number of businesses in the U.S.: 27,626,360
  • Number of businesses in Kentucky: 331,546
  • Burglary rate per 1,000 residents in the U.S.: 4.69
  • Burglary rate per 1,000 residents in Kentucky: 4.70
  • Auto theft rate per 1,000 vehicles in the U.S.: 2.37
  • Auto theft rate per 1,000 vehicles in Kentucky: 2.23


CityPopulationNumber of Established FirmsBurglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Mount Sterling7,2427485.091.11
Benton4,3493982.990.22
Central City5,8576540.850.09
Jeffersontown27,3523,1713.413.18
Louisville616,26152,98313.565.87
Lexington318,44928,6717.723.73
Bowling Green65,2346,3665.871.84
Owensboro59,2734,4338.193.96
Covington40,7973,0517.202.99
Hopkinsville31,8112,4856.271.31
Richmond34,6523,0987.332.27
Scottsville4,2263496.303.60
Mayfield9,9991,0067.442.08
Henderson28,8412,1645.921.70
Elizabethtown29,9062,6343.591.34
Springfield2,5192161.292.59
Lebanon5,6385285.081.40
Frankfort25,5277,1599.173.12
Paducah25,1452,9126.042.74
Jamestown1,6241310.550.55
Maysville8,8667336.040.09
Prospect4,6573980.410.81
Hurstbourne3,8843710.390.41


Mount Sterling, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: The property crime rate in Mount Sterling is higher than the national average, and this may influence your rates for property insurance coverage. For the most part, however, you will want to cover your business assets against major disasters such as fire and flood and against severe windstorms and thunderstorms.

Commercial Auto: Business-owned vehicles must be covered by a commercial auto insurance policy. Your rates will be based on a number of factors, including the number and types of vehicles you are covering and the risk of collisions in your city. Adding optional comprehensive insurance will provide coverage against non-collision damage such as that caused by fire, flood and theft.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Mount Sterling, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year 
  • Accommodation and Food Services Industry, $890/year 

Rates for coverage can vary significantly within the manufacturing industry, depending on the type of products your company produces and the risks inherent with making them. Jobs in the hotel and restaurant industries have a much lower risk of employee injuries.

Benton, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: Like severe weather events and other disasters, property crimes such as theft and arson can lead to large business losses if you do not have the right insurance policies in place. The crime rate in Benton can play a role in how insurers calculate your coverage rates.

Commercial Auto: If your business has company-owned vehicles, they must be covered by an appropriate commercial auto policy. Insurance companies will base your rates on a number of factors, including the number and types of vehicles you are covering 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 are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Benton, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year 
  • Educational Services, $220/year 

Workers' compensation insurance rates can vary significantly within the manufacturing industry, depending on the types of products your business makes and how dangerous they are to produce. Jobs with a lower risk of injury, like those in the education services field, are much less expensive to cover.

Central City, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: The low rate of property crime in Central City can help keep your costs for coverage against theft low; however, you will also need to cover your business-owned property against other hazards such as severe weather, fires, floods and human error.

Commercial Auto: If your Central City business uses company-owned vehicles, you will need to include commercial auto insurance in your business insurance policy package. By including the optional comprehensive coverage, you will be able to receive compensation for loss and damage caused by non-collision-related events such as fires, floods, falling objects and theft.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Central City, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year
  • Mining, Quarrying, and Oil & Gas Extraction Industry, $14,820/year

Companies in the manufacturing industry make up approximately 22% of Central City's businesses. The rates to cover manufacturing employees with workers' compensation insurance will vary according to the types of products your company produces and the injury risks that go along with it. Mining jobs, such as those at KenAmerican Paradise Underground Mine, are also common in Central City. The rates to cover mining employees are quite high (and may be increasing) because of the high risk of injury, death and long-term health problems like black lung.

Jefferson, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: You will want to ensure that the property owned by your Jefferson-based business is properly covered against disasters like fires, floods and severe weather events. You will also want to cover against property crimes like theft and arson. The low rate of property crimes in this city can help keep rates manageable.

Commercial Auto: If your business owns a vehicle or a fleet of vehicles, you are required to have a commercial auto insurance policy. Your rates will be influenced by such things as the types of vehicles you are covering and the risk of collisions in and near Jefferson. Adding the optional comprehensive coverage can give you protection against non-collision losses such as those caused by falling objects, fires, floods and theft.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Jefferson, KY workers comp cost looks like.

  • Retail Trade Industry, $940/year 
  • Manufacturing Industry, $4,540/year 

The cost to provide retail trade employees with workers' compensation insurance can vary according to the type of retail establishment you own. Rates to cover manufacturing jobs can actually vary significantly from the figure above, depending on the types of products your company produces and the injury risks employees face while making them.

Lexington, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: If your company owns lot of expensive property, such as machinery, tools, inventory and merchandise, it is important that these assets be sufficiently covered by commercial property insurance. Your rates will be affected by your company's risk of facing a natural or man-made disaster, as well as by its risk of being robbed or vandalized. 

Commercial Auto: Business-owned vehicles must be covered by commercial auto insurance. With the very high number of vehicular thefts in Lexington, it may be wise to include the optional comprehensive coverage in your policy. This can provide compensation if your vehicles are stolen or damaged by a non-collision-related event.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Lexington, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year
  • Retail Trade Industry, $940/year 

Lexington businesses include a wide range of industries. The cost to provide manufacturing employees with workers' compensation insurance can vary according to what your company produces and the injury risks your workers face on the job. Rates to cover retail trade jobs also vary depending on the type of establishment you operate. For example, workers at 24-hour convenience stores have higher risks than those at clothing boutiques.

Covington, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: While you will want to protect your Covington business against theft, you face more significant risks of high-dollar losses caused by damaging disasters such as fires, floods, explosions and employee errors. To prevent your company from suffering large financial losses, you will want to be sure that your business assets are suitably covered against these risks.

Commercial Auto: Business-owned vehicles must be covered by a commercial auto insurance policy. Your rates will be based on a number of factors, including the number and types of vehicles you are covering and the risk of collisions in your city. Adding optional comprehensive insurance will provide coverage against non-collision damage such as that caused by flood, fire and theft.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Covington, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year 
  • Accommodation and Food Services Industry, $890/year 

The cost to cover manufacturing employees with mandatory workers' compensation insurance may vary from the number above, depending on the types of products your company produces. As you can see, the rate to cover workers in the accommodation and food services industry is significantly lower than for those in manufacturing. This is because of the lower risk of injuries in terms of frequency and severity.

Hopkinsville, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: Not only can severe weather events and man-made disasters cause excessive property loss but so too can property crimes like theft and arson. That is why it is so important that you have the right business insurance policies in place. The relatively low crime rate in Hopkinsville can help keep your costs for theft-loss protection manageable.

Commercial Auto: If your business owns a vehicle or a fleet of vehicles, you will need to include commercial auto insurance in your business's coverage package. Your rates will be based on a number of factors, including the number and types of vehicles you are covering, the number and frequency of miles you drive and the risk of collisions in your city. Adding comprehensive insurance will cover you against vehicular theft.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Hopkinsville, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year 
  • Retail Trade Industry, $940/year 

The rates for covering manufacturing employees can vary significantly, depending on the products your company makes and the injury risks associated with that type of production. Retail trade companies are less expensive to insure with workers' compensation coverage; however, these rates can also vary according to the type of retail establishment you own, as some have higher risks of employee injuries.

Bowling Green, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: 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 in safer cities. Commercial property insurance can cover your business assets against loss and damage caused by natural disasters, man-made disasters and property crime.

Commercial Auto: If your Bowling Green business has company-owned vehicles, they must be covered by an appropriate commercial auto policy. Insurance companies will base your rates on a number of factors, including the number and types of vehicles you are covering and the risk of collisions and theft in your city. You must include comprehensive insurance for 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 are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Bowling Green, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year 
  • Retail Trade Industry, $940/year 

Rates to cover manufacturing jobs with workers' compensation can vary significantly from the rate shown above, depending on what your company produces and the injury risks associated with production. The costs to cover retail trade employees can also vary according to the type of retail establishment you own. 

Owensboro, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: It is important that you sufficiently cover your business assets with the right commercial property insurance. Some things that can influence your rate for this coverage include the value of your business property, the risk of severe weather events and the property crime rate in your city. The crime rate in Owensboro is slightly lower than the national rate, and this can help keep coverage costs affordable.

Commercial Auto: 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 may want to ensure that you are covered against theft and other non-collision damage such as that caused by vandalism, falling objects, fires and floods. You can do this by including comprehensive coverage in your auto policy.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Owensboro, KY workers comp cost looks like.

  • Manufacturing Industry, $4,540/year
  • Retail Trade Industry, $940/year 

The cost to cover manufacturing jobs with workers' compensation may vary significantly from the rate shown above, depending on what your company produces and the injury risks associated with said production. The costs to cover retail trade employees can also vary depending on the type of retail establishment you own.

Louisville, KY Business Insurance Cost Factors

Covering Your Business Assets

Property: In addition to damage caused by severe weather and other disasters, property crimes like theft and arson can lead to expensive business losses. This is why it is so important that your company be protected with the right property insurance coverage. An independent agent can help you review your various options.

Commercial Auto: Louisville has not published car theft rates since 2002. New technology has most likely reduced the risk of auto theft in this city since then, but it is still a concern. If your company owns vehicles, you will want to be sure to add comprehensive coverage to your commercial auto insurance plan so that you can be compensated against theft and other non-collision damage.

Workers’ Compensation

Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It is required for most Kentucky employers. Every workplace has unique risks and hazards for its workers, which is why worker’s compensation rates vary so significantly depending on your industry.

Based on a $100,000 annual payroll, here is what the two leading industries in Louisville, KY workers comp cost looks like.

  • Construction Industry, $10,300/year 
  • Accommodation and Food Services Industry, $890/year 

Companies based in Louisville span a wide range of business industries. As you can see, the rates for workers' compensation insurance are vastly different between these two industries. That is because the risk of frequent and serious injuries is much greater for construction workers.