Who Needs Business Insurance in Kansas?

While not all forms of business insurance are legally required in Kansas, nearly every business can benefit from having some level of protection.

You should consider business insurance if you:

• Have employees (even part-time)

• Own or lease commercial property or equipment

• Provide professional services or advice

• Operate vehicles for business use

• Work with customers or vendors in person

From restaurants and tech startups to construction crews and home-based businesses, having the right coverage can shield you from financial losses, legal claims, and operational disruptions.

Workers’ Comp: When It’s Required in Kansas

Kansas law requires most employers with one or more employees to carry workers’ compensation insurance. This includes full-time, part-time, seasonal, and temporary workers.

Key exemptions:

• Sole proprietors, partners, and LLC members with no employees

• Certain agricultural workers

• Businesses with a gross annual payroll under $20,000 (excluding owner compensation)

Workers’ comp insurance in Kansas covers:

• Medical care for job-related injuries or illnesses

• Lost wages during recovery

• Permanent disability benefits

• Death benefits for dependents

• Legal defense in the event of employee injury claims

Employers can obtain coverage through private carriers or apply to become self-insured if eligible.

Commercial Auto Insurance Basics

If your Kansas business owns or uses vehicles for work—such as transporting goods, visiting clients, or hauling equipment—commercial auto insurance is required.

Kansas minimum commercial auto coverage limits:

• $25,000 for bodily injury per person

• $50,000 for bodily injury per accident

• $25,000 for property damage per accident

• $4,500 in Personal Injury Protection (PIP), as Kansas is a no-fault state

Personal auto policies typically do not cover vehicles used for business. You may also need Hired and Non-Owned Auto (HNOA) coverage if employees use their personal vehicles for business tasks.

Professional Liability for Certain Jobs

Professional liability insurance (also known as errors & omissions insurance) is essential for service-based businesses that offer specialized advice or expertise.

Common professions that need E&O insurance:

• Attorneys, consultants, and accountants

• Engineers and architects

• IT firms and software developers

• Real estate brokers and agents

• Medical professionals and counselors

This policy covers legal defense costs and settlements arising from claims of negligence, mistakes, or failure to perform professional duties.

In some industries, professional liability may be required by state licensing boards, contracts, or professional associations in Kansas.

Is General Liability Insurance Mandatory?

General liability insurance is not required by Kansas state law, but it’s highly recommended—and often contractually required—especially if:

• You rent commercial space

• You work on job sites

• You serve the public or have physical client interactions

This core policy protects against:

• Third-party bodily injury (e.g., a customer slips in your store)

• Property damage (e.g., your employee breaks a client’s equipment)

• Legal defense costs

• Personal and advertising injury (e.g., slander or copyright infringement)

Without it, your business could face thousands in out-of-pocket expenses for a single lawsuit.

Other Useful Coverages for Kansas Businesses

Beyond the basics, here are several types of insurance that can help Kansas businesses manage risk:

• Business Owner’s Policy (BOP): Bundles general liability and property insurance

• Commercial Property Insurance: Protects your building, equipment, signage, and inventory

• Cyber Liability Insurance: Crucial for businesses storing customer or payment data

• Employment Practices Liability Insurance (EPLI): Covers claims of harassment, wrongful termination, or discrimination

• Inland Marine Insurance: For tools, equipment, and materials in transit or offsite

• Umbrella Insurance: Extends liability protection beyond standard policy limits

Each business has unique risks—consult a Kansas-licensed independent agent to build a policy tailored to your needs.