A business requires a lot of risk in order to build and operate. Business insurance helps protect a business' assets so one claim or accident doesn't send the company out of business.

Business insurance comes in several forms and can protect against practically any danger or lawsuit risk that you may face. Some of the most common coverages under business insurance include:

• General Liability Insurance: This covers accidents concerning bodily injury and property damage of a third party that occurs on the insured business property.
• Commercial Property Insurance: This covers physical property owned by the business. It offers compensation for loss or damage due to fire, smoke, lightning, hail, wind, theft or vandalism.
• Professional Liability Insurance: This covers acts of professional negligence.

Insurance requirements and needs may vary based on location and industry. Carefully consider the specific dangers your business faces. Most businesses need to carry general liability and commercial property in order to cover their physical assets and monetary assets. But small businesses may also benefit from workers compensation insurance.

Business insurance costs vary widely depending on a variety of factors - such as location, industry, policy types, coverage limits, credit score and claims history. On average, Kentucky businesses may pay $300 to $5,000 a year for general liability insurance alone. It's usually more cost effective to bundle coverages into a business owners policy (BOP), which allows businessowners to combine important coverages for a lower cost.

Business interruption insurance provides compensation to the business for lost income and wages while the business is unable to operate due to a force outside of the business' control. If a business is unable to operate due to a disaster or government mandate, business interruption insurance can help displace a percentage of the normal income on an average day, or even replace wages.

Insurance requirements for businesses differ state to state, as well as between industries. In Kentucky, all businesses (except certain agricultural exclusions) with even one full-time or part-time employee must carry workers compensation insurance. Workers compensation insurance covers expenses if an employee is injured on the job or in the course of employment.

Kentucky also requires businesses that own or use vehicles for work to carry commercial auto insurance. Businesses with commercial vehicles must carry at least:

• $25,000 in bodily injury liability per person
• $50,000 in bodily injury liability per accident
• $25,000 in property damage liability
• $10,000 in personal injury protection

Some insurance policies are required legally while others may be required by lenders or investors. Be sure to check your state's policies and discuss requirements with banks or other entities that the business will be working with.

Every business is different, but all should carry at least the state minimum requirement. There are coverages geared to fit practically every industry. If you're unsure of what policy you need or how much coverage to purchase, connect with a First Insurance Group USA agent today to discuss your options.