Insurance in Kentucky

Kentucky DHBC trade licenses require licensees to carry the insurance the division's rules specify, and project owners on both commercial and residential jobs routinely require proof of coverage before you step on site. Workers' compensation is required of most Kentucky employers under KRS 342.630. Minimum coverages a new trades shop should expect to carry: - General liability. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Covers bodily injury and property damage arising from your work. - Workers' compensation. Required of most Kentucky employers regardless of employee count under KRS 342.630. The Kentucky Department of Workers' Claims administers the system. - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects on a job with property damage exposure. Shop the market. Trade association programs (ABC Kentucky, AGC, PHCC of Kentucky, MCA, IEC chapters) often have group insurance programs that beat street-rate premiums for specialty trades. Independent agents who write construction can quote multiple carriers and compare class codes. Never let coverage lapse during an active job. A one-day gap on a multi-month project is enough to void a claim if something happens during the gap. DHBC licenses can be suspended if a required coverage lapses.