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Kentucky Crime Insurance Guide

A Kentucky employee can be tricked into authorizing a real wire even when no one forges a check. Kentucky’s funds-transfer law now says that a familiar email, IP address, phone number, or specimen signature alone is not a security procedure; since January 1, 2025, the statute also describes callback procedures among possible verification devices. Compare the bank agreement with the people and approval steps in your workflow, then ask the broker to distinguish employee dishonesty, check forgery, unauthorized transfers, and social engineering. The bank rules do not establish policy coverage. 2,3,1

What Is Crime?

Crime insurance can help reimburse specified business losses from theft and fraud, including employee theft and forgery. Compare those protections separately and ask whether a payment sent after an impersonation scam is covered. Read the national Crime guide.

What to Watch for in Kentucky

  • Do not equate a familiar sender address with verification

    KRS 355.4A-201, as amended effective January 1, 2025, says requiring a payment order from a known email address, IP address, or phone number is not by itself a security procedure. It lists callback procedures among the possible verification devices. Ask the bank to identify the procedure your business agreed to and make sure staff follow its callback and approval steps. 2

  • Match wire limits and approvers to the bank agreement

    Under KRS 355.4A-202, when the customer and bank have agreed to a verification procedure, an order may be effective as the customer’s order if the procedure is commercially reasonable and the bank accepted it in good faith and followed its obligations and recorded instructions. Review the agreement, transaction limits, and authority list with the bank; ask separately whether the policy addresses an employee who follows a spoofed request. 3,4

  • Do not overlook contractor check access

    KRS 355.3-405 includes a retained independent contractor in its employee definition for a specific fraudulent-endorsement rule when the worker has responsibility with respect to an instrument. If outside staff prepare payments or process incoming checks, ask how the policy defines covered employees and whether its check and employee-dishonesty terms reach that workflow. 1

Who Regulates Insurance in Kentucky

Kentucky Department of Insurance

The Kentucky Department of Insurance licenses agents and insurers, monitors the insurance market, and accepts complaints about insurance companies and agents. You can use its state lookup or complaint service to check a license or raise an insurance issue. 5,6,7

Surplus-lines tax and stamping office

Reported tax rate: 3% on Kentucky-home-state premiums and other premium consideration; separate 1.8% surcharge on eligible risks located in Kentucky, subject to statutory exceptions; applicable local-government premium tax may also apply When Kentucky is the insured's home state, the state tax is 3% of premium and other consideration treated as premium; local-government premium taxes may also apply. A separate 1.8% surcharge generally applies to Kentucky risks, but state law exempts multistate nonadmitted risks and specified government and nonprofit premiums. The broker must make a diligent effort to place coverage with an admitted carrier before using surplus lines. 8,11,9,10,12

Providers With Documented State Licenses

These providers publish a national listing for Crime; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Kentucky. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CoalitionCoalition Insurance Solutions, Inc.Insurance producer, Surplus-lines broker · checked 2026-09-28Coalition’s license page lists producer and surplus-lines licenses for Coalition Insurance Solutions, Inc. in all 50 states and the District of Columbia. The page separately lists insurers; this record covers the brokerage entity only. 14
  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 15
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 19

Questions to Ask Before You Buy in Kentucky

  1. Does the policy’s employee definition include contractors and their staff who prepare, process, or control checks?
  2. Does an employee’s authorized wire payment after a spoofed executive or vendor message fit a social-engineering grant, and what sublimit or verification conditions apply?
  3. What does our bank’s signed agreement call the security procedure, who may issue orders, and are callbacks made to a previously verified number?
  4. Which separate policy clauses address forged checks, employee dishonesty, unauthorized payment orders, and voluntary payments made after deception?

Crime in Kentucky: FAQ

Is a known email address enough to verify a wire under Kentucky law? 2

Not by itself. KRS 355.4A-201 says that using a known email address, IP address, phone number, or specimen signature alone is not a security procedure. Review the full bank-customer agreement. 2

Does Kentucky’s bank security rule guarantee reimbursement under crime insurance? 3

No. Article 4A addresses payment-order rights and the agreed bank procedure. The insurance policy separately controls what losses are covered and subject to what conditions. 3

Crime in Other States

Other Coverage in Kentucky

Sources

  1. Kentucky Revised Statutes § 355.3-405: Employer’s responsibility for fraudulent indorsement by employee. Kentucky General Assembly, Legislative Research Commission; KRS 355.3-405(1)–(3); retained contractors, responsibility, and fraudulent endorsement. The statute states its effective date as January 1, 1997. Accessed 2026-09-28.
  2. Kentucky Revised Statutes § 355.4A-201: Security procedure. Kentucky General Assembly, Legislative Research Commission; KRS 355.4A-201(1)–(3), including callback procedures and known-source exclusions; amended by 2024 Ky. Acts ch. 10, § 27, effective January 1, 2025. Accessed 2026-09-28.
  3. Kentucky Revised Statutes § 355.4A-202: Authorized and verified payment orders. Kentucky General Assembly, Legislative Research Commission; KRS 355.4A-202(1)–(6), verified orders, commercial reasonableness, and agreement limits; amended by 2024 Ky. Acts ch. 10, § 28, effective January 1, 2025. Accessed 2026-09-28.
  4. Business Email Compromise. Federal Bureau of Investigation; How BEC scams work; steps after a BEC incident, including immediate financial-institution contact and IC3 reporting. Accessed 2026-09-28.
  5. Kentucky Department of Insurance. Kentucky Department of Insurance; Homepage and consumer telephone. Accessed 2026-09-28.
  6. Insurance License Lookup. Kentucky Department of Insurance; State-designated producer/company search. Accessed 2026-09-28.
  7. File an Insurance Complaint. Kentucky Department of Insurance; Official DOI consumer complaint page accepts complaints involving general liability and disputes with insurers, agents or adjusters. Accessed 2026-09-28.
  8. KRS 304.10-180. Kentucky General Assembly; KRS 304.10-180(1): Kentucky-home-state; 3% applies to premiums, assessments, fees, charges or other premium consideration; local premium tax is separate. Accessed 2026-09-28.
  9. Local Government Premium Taxes. Kentucky Department of Insurance; Current local tax schedules. Accessed 2026-09-28.
  10. KRS 304.10-090. Kentucky General Assembly; KRS 304.10-090 requires policy notice that nonadmitted insurer is not a Kentucky Insurance Guaranty Association member and its benefits are unavailable upon insolvency. Accessed 2026-09-28.
  11. KRS 136.392. Kentucky General Assembly; KRS 136.392(1),(5)-(6): $1.80 per $100 on premium/other charges for Kentucky risks; named government/nonprofit exceptions; multistate nonadmitted risks exempt. Accessed 2026-09-28.
  12. Surplus Lines. Kentucky Department of Insurance; Full page states licensed surplus-lines brokers must make a diligent effort to place with an admitted carrier before exporting coverage. Accessed 2026-09-28.
  13. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  14. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  15. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  16. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  17. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  18. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  19. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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