Find the Best Business Insurance Options in Alabama
There are over 408,000 small businesses in Alabama, which represents over 99 percent of the businesses in the state. Small businesses employ over 809,000 people in Alabama, making small businesses essential to the state’s economy.
If you own a business in Alabama, how can you protect your assets from property losses and lawsuits? Business insurance provides the financial backup you need. An independent insurance agent can help you compare business insurance quotes in Alabama.
Best Business Insurance Companies in Alabama
There are numerous insurance companies that offer business insurance in Alabama. The following are some of the best business insurance companies Alabama. They are highly rated for their mix of valuable coverage offerings and competitive pricing.
- Liberty Mutual: Liberty Mutual is headquartered in Boston, MA and has been offering business insurance since 1912. Today the company offers a flexible, multiline range of coverages designed to meet the needs of any business, regardless of size or industry.
- Nationwide: Nationwide provides business insurance and other popular types of insurance coverage in Alabama. The company is headquartered in Columbus, OH and is represented by independent insurance agents in all 50 states.
- Travelers: Travelers offers highly rated business insurance in Alabama. The company provides a variety of business insurance options, including inland marine, workers' compensation, and general liability.
- Progressive: Progressive is based in Ohio, but offers business insurance across all 50 states. Alabama business owners can look to Progressive for most of their commercial insurance needs.
- EMC Insurance Companies: EMC is in the top 60 business insurance companies United States. The company specializes in designing well-rounded insurance programs to protect the financial assets of many types of businesses and organizations.
An independent insurance agent in your area can help you learn more about these and other AL business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Alabama business insurance needs.
Alabama Business Insurance Requirements
Business insurance is a package of insurance policies covering your property and liability risks. Most types of business insurance are not required in Alabama, but if your business owns any vehicles, you will likely have to buy commercial vehicle insurance that complies with the state’s financial responsibility laws.
In addition, any business in Alabama that has five or more employees, other than contractors, is required by law to have workers’ compensation insurance. The term employee includes all full or part-time employees, officers of a corporation, or members of an LLC.
Workers' compensation insurance helps injured workers pay for the costs of medical care and lost wages if they are injured on the job.
Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance and workers’ compensation insurance in Alabama.
What Business Insurance Covers in Alabama
Business insurance will vary somewhat for every business, but a typical business insurance package in Alabama will include the following types of coverage, at a minimum:
- Commercial general liability (CGL) insurance: Protects your business from lawsuits related to bodily injury and property damage claims. It pays for medical expenses, legal fees, and financial settlements or judgments. Your CGL policy even covers personal injury claims such as libel and slander.
- Commercial property insurance: This covers damage to a building and its contents if damaged by a weather event, fire, theft, vandalism, and other covered perils.
- Business interruption coverage: Protects your earnings and pays certain expenses if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. If you are forced to close for a while to make repairs or rebuild your business, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
- Commercial vehicle insurance: Protects your business-owned cars and trucks from property damage and liability claims.
- Workers’ compensation insurance: Pays for medical expenses and a portion of an employee's lost wages after a work-related injury.
Your business insurance in Alabama may include additional policies that cover your unique risks.
Liability Coverage Options for Small Businesses in Alabama
Many small businesses would have a hard time recovering if they were faced with a lawsuit. Liability insurance can cover you when you’re accused of causing harm to an individual or another business. There a numerous liability coverage options for small businesses in Alabama.
A commercial general liability (CGL) policy offers broad protection from lawsuits. It covers your legal costs, medical expenses and other damages for the injured party, and other expenses related to a liability claim against your business.
Be aware that CGL policies do not protect you from every type of lawsuit. You likely need additional liability policies or policy endorsements that supplement your CGL policy and eliminate any gaps in your protection.
An independent insurance agent can help you assess your need for additional liability coverage, such as:
- Employment practices liability insurance: Covers your business against accusations of illegal business practices such as discrimination and wrongful termination.
- Environmental liability insurance: Covers your business if an accident results in your company polluting the land, water, or air.
- Professional liability insurance: Covers individuals in professional positions if errors in judgment or other professional mistakes cause third-party damage.
Talk to an Alabama independent insurance agent to learn more about liability risks and how to protect your business with liability coverage.
Property Coverage Options for Small Businesses in Alabama
Property losses can originate in a variety of ways and cause tremendous harm to your business. Here are the basic business property coverage options in Alabama:
Commercial property insurance
- Protects you when your commercial property is damaged by someone else or by some type of unforeseen event.
- You need business property insurance if you own your building or have tangible business assets (furniture, computers, fixtures, inventory, materials, tools, etc.).
- Repairs or replaces damaged or destroyed commercial property after damage due to fire, vandalism, smoke, theft, severe weather, and other causes of loss.
Business interruption insurance
- Usually included as part of a commercial property policy.
- Protects your earnings if your business is unable to operate because of damage after a fire, hail, wind, equipment breakdown, or some other covered event.
- If you’re forced to close your doors for a period of time in order to make repairs, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
A local independent insurance agent can help you get quotes for business property insurance in Alabama.
Other Insurance Options for Small Business Owners in Alabama
Your business insurance needs likely don’t end with basic property and liability coverage. Other insurance options for small business owners in Alabama include:
- Business owners policy (BOP): A package policy that includes commercial liability insurance, commercial property insurance, and business interruption insurance.
- Workers’ compensation insurance: Typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job.
- Commercial vehicle insurance: Covers your vehicles and drivers in the event of an accident or other types of vehicle damage.
- Cyber liability insurance: Provides coverage in the event of a data breach involving your business.
- Employment practices liability insurance: Protects you if an employee sues you for discriminatory employment practices.
- Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
- Professional liability insurance: Protects you if a client claims you have been negligent in providing professional services.
- Commercial umbrella insurance: Provides excess liability coverage above and beyond the limits of your applicable underlying commercial liability policies.
This is not an exhaustive list of your business insurance options in Alabama. An independent insurance agent can make sure that all of your Alabama business insurance needs are met.
Average Cost of Business Insurance in Alabama
Every business is unique and there are many variables that contribute to the cost of business insurance, making it difficult to compute an average cost of business insurance in Alabama. Several factors, including the following, influence the cost of Alabama business insurance:
- The size and physical location of your business
- Your number of employees
- Your gross sales and payroll
- The nature of your business (what do you do?)
- The value of your physical assets (buildings, vehicles, machines, equipment, inventory, etc.)
- Your prior claims history
- The types and amounts of coverage that you need
An independent business insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Alabama.