Paducah Business Insurance

(Find the right business insurance policy for you.)

Ann Herro, Insurance Expert Written by Ann Herro
Ann Herro, Insurance Expert
Written by Ann Herro

Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.


During previous years, there were 340,746 small businesses, employing 686,517 people, headquartered in Kentucky. Nearly 3,000 of these businesses were based right here in Paducah, KY. From roofing contractors to marketing consultants, small-business owners make a big contribution to their local economies. Whether you own a larger business like Dippin’ Dots or a small independent contracting company with no employees, it is important that you protect the investment you have made in your business enterprise with a suitable Paducah commercial insurance policy.

Businesses in Kentucky collected $3,723,405 in business insurance claims in recent years. You will want to be sure that your business has the right coverage in place so it can be reimbursed for many of the potential losses it may face. Independent insurance agents in our network can help you identify your business’s exposures and can make appropriate coverage recommendations. They can also provide you with a selection of customized Paducah business insurance quotes so you can easily choose the coverage that offers the best value for your money. Find an agent near you to get started.

Your Paducah commercial insurance policy includes general liability coverage. This coverage provides your business with compensation for legal defense fees, court costs and financial damages that may accompany a covered lawsuit against your company. Your agent can help you understand this coverage and can identify any other types of liability insurance, such as commercial vehicle liability or pollution liability coverage, that may be a good fit for your business. Some coverage that may be of interest to you includes the following:

  • Premises liability insurance: Part of your general liability coverage, this covers third-party illnesses, injuries or property damage that are caused by an accident on your business premises. According to a recent Travelers Business Risk Summary, 60 percent of small-business owners ranked medical cost inflation as their highest concern and over 30 percent said they felt the least prepared to handle this concern. Liability insurance covers the unexpected medical costs associated with accidents for which your business is deemed liable.
  • Product liability insurance: Also part of your general liability coverage, this covers your business against lawsuits related to illnesses, injuries or property damage caused by a product you produce, sell or promote. According to a national study, 71 percent of product liability awards by the courts amounted to $1 million or more, so this insurance coverage can prove quite valuable to your Paducah business.
  • Professional liability insurance: Also referred to as errors and omissions insurance, this insurance covers professionals against lawsuits brought about because of mistakes, negligence or errors in judgment. Medical malpractice insurance is a well-known example of professional liability insurance. Considering that 53 percent of medical malpractice awards by the courts amounted to $1 million or more, it is easy to see why this coverage can be vital.

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Business Interruption Insurance for Paducah Businesses

  • Recent Gross domestic product (GDP) for the U.S.: 2.2%
  • Recent Gross state product (GSP) for Kentucky: 1.6%
  • The recent GSP was 0.6% lower than the recent GDP

Businesses in Paducah contribute Kentucky’s gross state product. However, if a covered disaster, such as a tornado or an accidental fire, forces you to halt commercial operations for an extended period while repairs are made, your business will not be generating any revenue at all. In some cases, this can lead a small business into bankruptcy. Shield your business from this sort of loss by making sure that your Paducah commercial insurance portfolio includes business interruption insurance. That way, your business can receive a continuation of income during the time that it is not operational because of a covered event. This coverage is typically limited to one year of coverage.

Property Insurance for Small Business in Paducah

  • Number of natural disasters in the U.S. in recent years: 119
  • Only 61% of losses from natural disasters were covered; $9.7 billion from damage was not

Paducah businesses are most at risk for damage caused by tornadoes, severe storms, and accidental fires. Each can lead to significant damage, which is why including sufficient amounts of property insurance is so important. This insurance covers most of your business-owned assets, including such things as merchandise, computers, machinery, tools, outdoor signs, display cases, and office furniture. Because of the diverse coverage needs had by businesses in different industries, it is beneficial to work with an agent who can recommend additional property coverage, such as inland marine insurance or boiler and machinery insurance, when appropriate.


Save on Business Insurance

Our independent agents shop around to find you the best coverage.

Workers' Compensation for Paducah Businesses

If your employees are injured on the job, your business is liable for covering associated costs, including medical treatment and lost wages. Workman’s comp, which is required of all Kentucky businesses that have a least one employee, provides this coverage. It has the added benefit of protecting your business from potential liability lawsuits related to workplace injuries. Your agent can help you find great coverage at a competitive rate.

Employee Coverages for Small Businesses in Paducah

  • Total recent spending on premiums in Kentucky: $697,974
  • Ranked 25th for the highest premiums in the U.S.
  • Annual cost of health care for small businesses in recent years: $5,077/person or $15,463/family

If your Paducah business employs at least 50 full time workers, you are required by the “employer mandate” portion of the Affordable Care Act (ACA) to provide them with subsidized health insurance coverage. Even if you own a smaller company and are not required to offer health coverage, a benefits package that includes coverage such as life and health insurance can help you attract and retain talented employees. It can also qualify your business for federal tax incentives, so it may be worthwhile. If you are interested in learning more, you can talk to your agent about finding suitable coverage options.

Cyber Crime Insurance for Paducah Small Businesses

  • Number of identity theft complaints in Kentucky in recent years: 2,358
  • Ranked #43 highest for identity theft complaints in the U.S.
  • Only 22% of businesses have a cyber/data breach response plan

If data thieves hack into your business computer system and steal sensitive information, such as your customers’ personal and financial data, you can be liable for tens of thousands of dollars in damages. Cyber crime insurance is a new type of liability coverage that shields your business from large financial losses associated with data theft. If you keep electronic records, you may want to talk to your agent to learn more about how adding cyber crime insurance to your Paducah business insurance portfolio can be beneficial to your business.

Find the Right Paducah Commercial Insurance for Your Business

Every business has very specific coverage needs, and different types of commercial insurance are designed to cover businesses in different industries, so building the right coverage can sometimes be complicated. Agents in our network can help you identify the risks faced by your business and can recommend the right coverage types to mitigate those exposures. These independent agents are free to work with several insurance companies, so they are equipped to help you find the most affordable coverage as you build your Paducah business insurance package. There are many local agents with offices in Kentucky, including in and around the city of Paducah. 

Find an agent near you to get more information, discuss your coverage needs and compare Paducah commercial insurance quotes.

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