(1) The commissioner shall not issue a license under KRS 198B.560 and 198B.580, unless the fire protection sprinkler contractor applicant files with the commissioner proof of liability insurance coverage of not less than two hundred and fifty thousand dollars ($250,000) one person/maximum and five hundred thousand dollars ($500,000) one accident/maximum and workers' compensation insurance as provided for in KRS Chapter 342.
(2) The workers' compensation insurance required by this section shall be in the form of certificate of insurance executed by an insurer authorized to do business in this state. The liability insurance required by this section shall be liability insurance that covers the legal liability of the licensed person as the result of erroneous acts or failure to act in his or her capacity as a fire protection sprinkler contractor or system designer and shall be in the form of certificate of insurance executed by an insurer authorized to do business in this state or exported by a licensed surplus lines broker to an eligible carrier pursuant to KRS 304.10-020 to 304.10-210. Insurance certificates filed with the commissioner under this section shall remain in force until the insurer has terminated future liability by a thirty (30) day notice to the commissioner.
(3) Failure to maintain the insurance required hereunder shall constitute grounds for denial, suspension, or revocation of a license under KRS 198B.620 by the commissioner. Effective:June 29, 2017