Kentucky Commercial Property Insurance

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Kentucky Commercial Property Insurance

In Kentucky, there are approximately 351,260 small business owners. Whether you're insuring a tractor or a retail building, you'll want adequate protection. Commercial property insurance is necessary to cover your assets.

Fortunately, an independent insurance agent can help. They have access to several markets, giving you options on coverage and premiums. Connect with a local expert for tailored quotes.

What Does Commercial Property Insurance Cover?

Commercial property insurance will have many coverage offerings. From structures themselves to business equipment, this policy can insure many things. Take a look at what is covered under a commercial property policy in Kentucky.

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be determined by an actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much your building is to replace or repair. Coverage can be on an actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will either be in replacement cost, actual cash value, or depreciated value.  

Ancillary coverages may be offered, depending on the carrier. There might be insurance for business papers and inventory under these options. It could even cover your customers' property as well. 

Who Needs Commercial Property Insurance?

If you own business property in Kentucky, you likely need commercial property insurance. Coverage is for more than you may think, and it's essential to review with a professional. Take a look at the list below on who may need commercial property insurance.

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

If a claim happens, your business will be financially on the hook for any damage without coverage. Avoid potential judgments and even bankruptcy by having proper insurance. Your commercial property coverage should be reviewed for accuracy.


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Commercial Property Insurance Cost

The price of your commercial property insurance will vary. Carriers use specific criteria to rate your business insurance policies. Check out the risk factors insurance companies use in Kentucky.

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

Your personal data and outside elements are used to determine the cost. Local weather patterns and crime rates will be things you can't control. The items you can improve could reduce your premiums. 

Top five weather-related risks in Kentucky

  1. Severe storms and lightning damage
  2. Flooding and water damage
  3. Wildfires
  4. Tornadoes
  5. Burglary and other property crimes

How Much Commercial Property Insurance Do I Need?

In 2019, Kentucky paid out $4,661,744,000 in commercial claims. Some of those were related to property losses. The amount of insurance that you'll need will depend on your property specifics. It's best to consult with a professional to get your clear coverage solution. In the meantime, take a look at the different types of insurance given to commercial property owners.

  • Replacement cost: This will pay for your commercial property's current value in full at the time of loss. When you have a claim, it will restore or replace your property to like, kind, and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This meets in the middle of actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Does Commercial General Liability Insurance Cover Property Damage?

Similar to a commercial auto policy, your general liability insurance and commercial property coverage are separate. They can work together on a package or business owners policy but are still accessed differently for claims. Take a look at the facts.

  • General liability insurance: This pays for a lawsuit arising out of bodily injury, property damage, libel or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: This pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will include general liability, commercial property, and more ancillary coverages together on one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How a Kentucky Independent Agent Can Help

If you have commercial property that needs insurance in Kentucky, a trusted adviser is necessary. To obtain sufficient coverage for your assets, winging it can be risky. The best course of action is to consult with a professional before it's too late. 

An independent insurance agent can help with carrier and premium options. Since they have access to multiple markets, you'll get the best deal in town. Connect with a local expert on and start saving.

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