In 2019, Kentucky had $4,661,744,000 in commercial insurance claims paid. When you own a business, you could be part of that number. In order to have adequate protection, liability insurance is necessary.
An independent insurance agent is a licensed professional that works on your behalf at zero cost to you. They have access to several carriers, so you get options on coverage and premium. Connect with a local expert to get started.
What Is Liability Insurance Coverage?
In Kentucky, liability insurance can be added to your business or personal policies. Coverage limits and premiums will depend on the type of risk it is insuring. All liability policies will have the same foundational coverages.
- Liability insurance: Will pay for a lawsuit arising out of bodily injury, property damage, libel or slander. It can be obtained for business and personal use. Most lienholders require some form of liability protection.
What Is Commercial General Liability Insurance?
Your Kentucky business will need commercial general liability insurance. This is the foundational policy from which all your other coverages stem. It is also the most used when a claim occurs. Some losses where it could apply are as follows.
- A customer slips and falls on-premises
- A building catches on fire
- A product is improperly installed, causing a water loss
If you become responsible for a loss that happens, it could wipe your small business out. When you obtain the right commercial general liability insurance, you may only have to pay the deductible. Review your policy options for accuracy before it's too late.
What Is Professional Liability Insurance?
If your Kentucky business offers professional services such as consulting or advice, professional liability insurance is essential. This policy will protect your finances from a lengthy legal battle. When you unknowingly give false information to a client, this policy will help pay for the lawsuit. Some industries where professional liability may apply in Kentucky are as follows.
- Real estate agent
- Insurance agent
- Financial adviser
- Business broker
- Business consultant
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What Is Employment Practices Liability Insurance Coverage?
Kentucky has approximately 702,054 people working for small businesses. If you employ a staff, then you are at risk for a lawsuit. Employment practices liability insurance will protect your rights and finances as the owner. Check out what it covers.
- Employment practices liability insurance or EPLI: Pays for a lawsuit filed by a disgruntled employee due to discrimination or sexual harassment in some form.
When you think it could never happen to your business, think again. Employees can feel threatened or harassed, and even if it's not accurate, they can still file a claim. Once a lawsuit begins, you'll have to battle it whether you're in the wrong or not. This is where EPLI comes into play and helps pay for legal fees.
What Is Liability Coverage on Home Insurance?
In Kentucky, there have been 549,229,000 homeowners insurance claims paid in one year alone. Part of those were liability losses that occurred on or off the home property. Your home's liability coverage will protect all household members from a bodily injury, property damage, libel or slander lawsuit. Take a look at some instances where this coverage could apply.
- A guest or trespasser injures themselves on your property
- Your tree falls and damages your neighbor's roof
- You have a pool party, and a guest drowns
What's the Difference between Full Coverage and Liability Insurance?
Full coverage insurance refers to your commercial or personal auto policies. In Kentucky, 11.5% of all drivers on the road are uninsured. This will put you and your business at risk. Liability at the state minimum limits for bodily injury per person, per accident, and property damage are required. If you want coverage for an uninsured driver or your vehicle, you'll have to add it. Take a look at the difference between liability only and full coverage.
- Liability only insurance: This is just liability coverage at the amount preselected for your auto policy. It will pay for bodily injury per person, per accident, and property damage of another party.
- Full coverage insurance: This will include additional coverages that protect you on the road. Things like comprehensive, collision, towing, and more are among the optional coverages you can select.
How a Kentucky Independent Agent Can Help
Liability insurance in Kentucky can be confusing if you're not a licensed professional. With the many options, it's hard to know what applies to you and your business. To ensure you're receiving the necessary coverage, consult with a trusted adviser.
An independent insurance agent can help shop your policies with several carriers. This gives you more options for a fraction of the price. They will review your insurance and provide quotes at no cost to you. Connect with a local expert on TrustedChoice.com in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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