KRS 217B.516: Liability insurance requirements for registration as a structural pest

management company.

(1) The department shall not issue or renew a structural pest management company

registration until the applicant has furnished to the department sati sfactory evidence

of financial responsibility consisting of a liability insurance policy or certification of

that policy.

(2) The amount of the liability insurance as required in this section shall be not less

than one million dollars ($1,000,000). The lia bility insurance shall be maintained at

not less than that amount at all times during the registration period. The department

shall be notified no less than ten (10) days prior to any reduction at the request of

the applicant or cancellation of the liabili ty insurance by the insurer. The total and

aggregate of the insurer for all claims shall be limited to the face of the liability

insurance policy. The department may accept a liability insurance policy which has

a deductible clause against the total amount of liability insurance required if the

clause does not specify an amount exceeding five thousand dollars ($5,000). If the

applicant has not satisfied the requirements of the deductible amount in any prior

legal claim, the deductible clause shall not be accepted by the department unless the

applicant furnishes the department with a security bond or other liability insurance

which shall satisfy the amount of the deductible as to all claims that may arise from

his or her application of pesticides.

(3) Should the surety furnished become unsatisfactory, the applicant shall, upon notice,

execute a new insurance policy and if the applicant fails to do so, the department

shall cancel the company's registration and it shall be unlawful for any person to act

as an em ployee or agent of the company to engage in structural pest management

until the insurance is brought into compliance with the requirements of subsection

(2) of this section and the registration is reinstated by the department.

(4) Nothing in this chapter shall be construed to relieve any person from liability for

any damage to a person or their property caused by the use of pesticides even

though the use conforms with this chapter and the administrative regulations

promulgated thereunder.