Business Insurance in Kentucky FAQ - Quick Answers

Your business insurance premium in Kentucky will be based on several risk factors. While you can't know your exact pricing until you obtain quotes for coverage, here are some factors that carriers tend to use: 

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Safety practices in place
  • Past claims reported
  • Number of years in operation

Several policies could be necessary to operate a successful business. Kentucky requires all businesses with employees to carry workers' compensation insurance. If you have vehicles used to operate the business, then you'll be mandated to have the minimum limits of auto liability. General liability, professional policies, and other policies can be useful, but are not required by state law in most cases.

Small business insurance in Kentucky can come in many forms. The most obtained policies are as follows:

There are numerous liability coverages you can purchase for your Kentucky small business, but some of the most common are listed below:

If you're a small business owner in Kentucky, you might be wondering about health insurance. When you have under 50 employees, you're not required by law to offer health coverage to your staff. However, adding health insurance can still be worthwhile for some. If interested, talk to your independent insurance agent.

There are many carriers that you can obtain small business insurance from. In Kentucky, Nationwide, Progressive, Hanover, and Stillwater insurance companies are ranked at the top. This is due to their broad coverage offerings and excellent customer service.

Do You Know What Your Business Insurance in Kentucky Covers?

Find the Best Insurance in Your City

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

CityNo. of businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Bowling Green6,3665.543.65
Covington3,0514.934.14
Elizabethtown2,6344.602.40
Frankfort2,1806.532.56
Henderson2,1643.953.38
Lebanon5283.491.75
Mayfield1,0068.022.64
  1. Mount Sterling, KY
  2. Business Insurance Common Coverage Options
  3. 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, flood, and severe windstorms and thunderstorms.
  4. Commercial Auto: Business-owned vehicles must be covered by a commercial auto insurance policy. Your rates will be based on several factors, including the number and type of vehicles you are covering, as well as 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.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. 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.
  8. Manufacturing Industry, $4,540/year 
  9. Accommodation and Food Services Industry, $890/year 
  10. Rates for coverage can vary significantly within the manufacturing industry, depending on the type of products your company produces and the risks inherent in making them. Jobs in the hotel and restaurant industries have a much lower risk of employee injuries.


  1. Benton, KY
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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. 
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Benton, KY look like.
  8. Manufacturing Industry, $4,540/year 
  9. Educational Services, $220/year 
  10. 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.


  1. Central City, KY
  2. Business Insurance Common Coverage Options
  3. Property: 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 human error.
  4. 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.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. 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.
  8. Manufacturing Industry, $4,540/year
  9. Mining, Quarrying, and Oil & Gas Extraction Industry, $14,820/year
  10. 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 Mine, are also common in Central City. The rates to cover mining employees are very high (and might increase) because of the high risk of injury, death, and long-term health problems like black lung.


  1. Jefferson, KY
  2. Business Insurance Common Coverage Options
  3. 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 property crimes like theft and arson. The low rate of property crimes in this city can help keep rates manageable.
  4. 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.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Jefferson, KY look like.
  8. Retail Trade Industry, $940/year 
  9. Manufacturing Industry, $4,540/year 
  10. 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.


  1. Lexington, KY
  2. Business Insurance Common Coverage Options
  3. Property: 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. 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. 
  4. Commercial Auto: 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 are stolen or damaged by a non-collision-related event.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Lexington, KY look like.
  8. Manufacturing Industry, $4,540/year
  9. Retail Trade Industry, $940/year 
  10. 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. Workers at 24-hour convenience stores have higher risks than those at clothing boutiques.


  1. Covington, KY
  2. Business Insurance Common Coverage Options
  3. 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, it is useful to make sure that your business assets are suitably covered against these risks.
  4. 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.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Covington, KY look like.
  8. Manufacturing Industry, $4,540/year 
  9. Accommodation and Food Services Industry, $890/year 
  10. 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.


  1. Hopkinsville, KY
  2. Business Insurance Common Coverage Options
  3. 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 useful to look into business insurance policies. The relatively low crime rate in Hopkinsville can help keep your costs for theft-loss protection manageable.
  4. 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 vehicle theft.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Hopkinsville, KY look like.
  8. Manufacturing Industry, $4,540/year 
  9. Retail Trade Industry, $940/year 
  10. 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.


  1. Bowling Green, KY
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp. costs for the two leading industries in Bowling Green, KY look like.
  8. Manufacturing Industry, $4,540/year 
  9. Retail Trade Industry, $940/year 
  10. 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. 


  1. Owensboro, KY
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Owensboro, KY look like.
  8. Manufacturing Industry, $4,540/year
  9. Retail Trade Industry, $940/year 
  10. 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.


  1. Louisville, KY
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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 may want to look into comprehensive coverage so that you can be compensated against theft and other non-collision damage.
  5. Workers’ Compensation
  6. 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 workers' compensation rates vary so significantly depending on your industry.
  7. Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Louisville, KY look like.
  8. Construction Industry, $10,300/year 
  9. Accommodation and Food Services Industry, $890/year 
  10. 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.