The Division of State Risk and Insurance Services delivers cost-effective insurance solutions for state-owned property, vehicles, mobile equipment, and exposures. It also manages statewide risk services and secures various policies—including Public Official Bonds, Commercial Liability, Sickness/Accident, Aviation, and other specialized coverages—for state agencies, universities, and the Kentucky Community and Technical College System.
The Division provides underwriting and appraisal services for state-owned structures and partners with a third-party claims adjuster to streamline claims processing. It assesses agency insurance needs and serves as the liaison between state entities, the Finance Cabinet, and the commercial insurance market.
Commonwealth's Property and Casualty Insurance Fund (Property Fund)
Established in 1936, State Risk's property insurance fund is a property insurance program covering all state-owned buildings and business personal property in accordance with KRS 56.070. It offers “all-risk" coverage—including flood and earthquake—subject to exclusions. The current fiscal year policy is available under Related Information below.
Kentucky Self-Insured Auto Program (KSAP)
Created in 2011, KSAP provides insurance for approximately 11,750 state-owned vehicles. The program tracks vehicle changes, issues annual renewal billings, and collects premiums accordingly.
The Division is comprised of five key functional areas:
- Appraisal
This team conducts field appraisals and annual updates for approximately structures owned by the Commonwealth. Using industry-standard software, appraisers determine replacement cost values based on square footage, perimeter, construction type, and material costs. These values help underwriters calculate insurance premiums for all state-owned properties.
- Underwriting
Property: Underwriting staff issue insurance policies to state agencies, universities, and the Kentucky Community and Technical College System. They work closely with agencies to ensure proper coverage for buildings, contents, fine arts, and business continuation. The Property Fund insures approximately $36 billion in property / assets.
Auto: For vehicles under the Kentucky Self-Insured Auto Program (KSAP), staff issue insurance policies to state agencies, universities, Property Valuation Administrators offices, and Kentucky Community and Technical College System. - Boiler / Sprinkler Inspections
Division staff administers and oversees the inspection program required under KRS 56.170 for all state-owned, insured facilities, ensuring coordination of quarterly, annual, and five-year inspections to maintain regulatory compliance and uphold life safety standards. Claims
Property: The Claims team is responsible for administering all property damage claims filed under the Commonwealth's Property Fund. Responsibilities include claim intake, investigation of coverages, coordination with third-party adjusters, and issuing settlement payments for covered damages.
Auto: For auto claims, staff verify coverage, review police reports and photos, before assigning cases to a third-party adjuster for resolution. Relevant claim forms and packets can be found under Related Information below.
- Risk Management
Risk Management empowers agencies to proactively identify and address potential exposures that threaten assets and operations. Far from being at the mercy of risk, agencies play a central role in prevention. Through active planning and hazard mitigation, risks can often be reduced—or entirely avoided—before losses occur. The process involves identifying, evaluating, correcting, and eliminating risk to protect agency resources.
Statewide Risk Management Services - At No Cost to Your Agency:
At State Risk, we offer comprehensive risk management services to all state agencies at no additional cost. Our State Risk Manager is available to help your agency develop a customized risk management plan tailored to your operations and exposures.
As risk managers, our goal is to identify and manage potential hazards while safeguarding state assets, income, and—most importantly—employees and visitors.
An effective risk management plan begins with understanding the different types of risks your agency may face. Hazards from any source can threaten your agency's strategic goals, disrupt operations, or cause harm. Proactive planning is essential to avoid unexpected losses, protect people, and prevent costly, unbudgeted repairs.
Ready to develop a viable risk management plan for your agency? We're here to help! Contact Sheri Whisman at 502-782-5444 for more information.
State Risk & Insurance Services Training:
The Division of State Risk & Insurance Services offers a variety of complimentary training sessions for state agencies. These sessions cover a broad range of insurance-related topics, including but not limited to:
- Overview of the Commonwealth's Property Fund and Kentucky Self-Insured Auto Program
- Property and Auto Claims Process - Step-by-step instructions on how to initiate and manage claims.
Sprinkler Inspection Program - Includes a hands-on demonstration, when facility access is available.
To request training, please complete the Training Request Form (CTR-1) in the link below.
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