Popular QuestionsPopular Questions About Alabama Business Insurance

Why should I have Alabama business insurance?

In 2018 small businesses in Alabama made $275 billion. If you don't have insurance, you'll have to pay for claims using your business revenue. Why lose your valuable company income when you could pay less for commercial insurance as a safeguard?

How have other business owners used their business insurance?

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or Burglary: Average Cost Per Claim - $8,000
  • Water damage & Freezing pipes: Average Cost Per Claim $17,000
  • Wind & Hail Damage: Average Cost Per Claim $26,000
  • Fire Damage: Average Cost Per Claim $35,000
  • Customer Slip & Fall - Average Cost Per Claim $20,000
How does Alabama business insurance help me?

Alabama business insurance will pay for covered claims so your business doesn’t have to. Here’s what a standard business insurance policy should do:

Pay For Damage To Your Building

  • We Call This “Commercial Property Insurance.” 
  • Example: A Tree Falls On Your Office Building.

Pay For Damage To Your Business Property

  • We Call This “Business Personal Property Insurance.” 
  • Example: A Fire Destroys All Your Computers.

Pay For Damage To Someone Else’s Property

  • We Call This “General Liability Insurance.” 
  • Example: A Contractor Does A Poor Job Of Installing A Cabinet, Resulting In Its Falling And Breaking Homeowner's Kitchenware.

Pay For Someone Else’s Medical Bills

  • We Also Call This “General Liability Insurance.” 
  • Example: A Customer Slips And Falls On Your Recently Mopped Floor And Breaks An Arm.

Pay For Accidents In Company Vehicles

  • We Call This “Commercial Auto Insurance.” 
  • Example: Your Salesperson Rear-Ends Someone While Driving To An Appointment.

Pay For Employee Injuries & Compensation

  • We Also Call This “Workers' Compensation.”
  • Example: An Employee Falls Off A Ladder At Work And Can’t Work For Two Weeks.

Sometimes you need additional coverage to protect against threats that are unique to your business. To make sure you have the right level of protection, work with an independent agent who specializes in your field.

What Insurance Does Alabama Require for Businesses?

Businesses in Alabama will need workers' compensation insurance before hiring employees. You will also need to carry commercial auto insurance if your business owns a vehicle. We can match you with an independent agent that will explain Alabama's legal requirements for business insurance and match you with the best policy for your unique needs.

How much does Alabama business insurance cost?

It depends primarily on how risky your business is. The riskier your business is, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year
How do I find the best business insurance in Alabama?

To get the best rates on Alabama business insurance, work with an experienced agent who knows your industry's common risk factors. Rates are determined by several factors including the types of coverage you want, your liability risk level and the local threats to your business property. 

It’s usually wise to work with an independent agent in Alabama since they have access to multiple insurance companies. Sometimes its difficult to find an insurance company who will cover your business.

  • There are 336 independent agents in Alabama are ready to help.
  • In 2017 our agents helped 2149 people. 
What are the top business insurance companies in Alabama?

An independent insurance agent compares policies from multiple companies to find the best coverage for your needs.

liberty mutual insurance
cna insurance
foremost insurance group
markel

InformationFind the Best Insurance in Your City

How does your city measure up?

  • Number of businesses in the U.S.: 27,626,360
  • Number of businesses in Alabama: 374,153
  • Number of burglaries per 1,000 residents in the U.S.: 4.69
  • Number of burglaries per 1,000 residents in Alabama: 7.00
  • Auto theft rate per 1,000 vehicles in the U.S.: 2.37
  • Auto theft rate per 1,000 vehicles in Alabama: 2.41


CityPopulationNumber of Established FirmsBurglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Mobile192,90420,11811.352.11
Daphne25,9132,3913.030.49
Foley17,6072,06012.920.66
Jackson5,22836311.180.66
Montgomery200,00218,04311.763.29
Dothan68,4686,6206.681.60
Enterprise28,0242,2626.481.60
Troy19,1911,4168.222.40
Auburn63,1184,6594.291.18
Anniston22,1121,99328.804.07
Birmingham212,15720,73814.817.14
Alabaster32,9482,7621.760.58
Tuscaloosa99,5436,80210.801.90
Sylacauga12,5408588.242.77
Decatur55,0724,9497.772.40
Gadsden35,8373,38820.105.32
Guntersville8,43789911.284.75
Cullman15,4961,6724.982.26
Ft. Payne14,0991,7625.861.77
Jasper14,0031,5838.575.78
Huntsville193,07916,86810.194.63
Florence39,9594,0867.301.88
Athens25,3932,2903.520.31
Demopolis18,9831,5376.610.56
Selma7,01954020.695.45

Mobile, AL Business Insurance Cost Factors

Crime and Theft

Property: Mobile residents are experiencing property crime at a higher rate, with an average of one out of every five homes being targeted. This is an everyday reminder of the importance of property insurance for your business. This Policy will protect your business from any damage related to vandalism, theft or arson. 

Commercial Vehicle: Commercial car insurance is an important piece of your business policy. Insurance will cover damage and liability related to accidents or auto theft, whether your business owns a single vehicle or a fleet of vehicles. 

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Mobile, AL workers comp cost looks like.

  • Manufacturing Industry: $3,270/year
  • Retail Trade Industry: $1,540/year 

Work-related hazards play a huge role in determining rates on workers' compensation coverage; heavy machinery and more frequent accidents drive rates up when compared with the retail sector. 

Daphne, AL Business Insurance Cost Factors

Crime and Theft

Property: Property damage can happen in the blink of an eye, thanks to severe weather, or property crimes like theft or vandalism. In areas where crime rates are high, commercial property insurance costs also tend to rise.

Commercial Vehicle: It’s important to choose the right commercial auto insurance for your company vehicles. Rates are based on numerous factors, but the risk for collisions and auto thefts will play a big role. Luckily, auto theft is pretty rare in Daphne, which should help lower insurance rates.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Daphne, AL workers comp cost looks like.

  • Manufacturing Industry: $3,270/year
  • Professional, Scientific, and Technical Services Industry: $180/year 

Work-related hazards play a huge role in determining rates on workers' compensation coverage; heavy machinery and more frequent accidents drive rates up when compared with the retail sector. 

Workers’ compensation insurance is more expensive for manufacturing companies, thanks to high risk work environments. Companies in the professional, scientific and technical services sector pay far lower rates for workers’ comp coverage because the workplace is safer and carries lower risks for injuries and accidents.

Foley, AL Business Insurance Cost Factors

Crime and Theft

Property: If your business property is damaged by theft, vandalism or arson, you’ll be stuck paying for the damage out-of-pocket if you don’t have commercial property insurance. Choose a policy that offers comprehensive protection against property crimes in Foley, where damage can quickly turn into a financial nightmare for small businesses.

Commercial Vehicle: Commercial auto insurance is designed to protect your business from losing valuable revenue in case of car accidents or auto theft. Your insurance rates will be based on several variables, including the number of vehicles you need to insure and the risk for accidents and theft in your city.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Foley, AL workers comp cost looks like.

  • Retail Trade Industry: $1,540/year
  • Construction Industry: $4,090/year 

Foley’s primary industries are retail trade and construction. While these businesses operate in the same city, the workers’ compensation insurance rates are significantly different. That’s because workplace hazards are unique to each industry. Employees on a construction site are more likely to get hurt on the job compared with employees in a retail store.

Jackson, AL Business Insurance Cost Factors

Crime and Theft

Property: Severe weather isn’t the only threat to your business property. Crime can also play a big role, with vandalism, theft and arson causing thousands of dollars in property damage each year. Protect your Jackson business with comprehensive commercial property insurance.

Commercial Vehicle: Auto theft is pretty rare in Jackson, which is good news for your commercial auto insurance rates. In areas where risks for collisions and vehicle theft are higher, insurance rates will also increase.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Jackson, AL workers comp cost looks like.

  • Manufacturing Industry: $3,270/year
  • Retail Trade Industry: $1,540/year

These two top industries are the backbone of Jackson’s economy, but they face unique risks and rewards. Businesses in both manufacturing and retail will need workers’ compensation insurance, but rates will be dramatically different for each sector. Employees of manufacturing companies tend to face more dangerous working conditions and frequent work-related injuries, while the retail trade carries a much lower risk for employee accidents. That’s why worker's comp coverage is more expensive for businesses in the manufacturing trade.

Montgomery, AL Business Insurance Cost Factors

Crime and Theft

Property: About one in twenty-four Montgomery residents will face property crime each year. This high risk for vandalism, theft and arson puts local businesses in jeopardy. Commercial property insurance can protect your business by paying for damage, but rates may be higher in Montgomery thanks to the high risk for property crime.

Commercial Vehicle: If your business utilizes vehicles as part of its daily operations, you’ll need to purchase commercial auto insurance. Your rate will depend on how many vehicles you need to cover along with the risk for collisions and car theft in your neighborhood.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Montgomery, AL workers comp cost looks like.

  • Manufacturing Industry: $3,270/year
  • Public Administration Industry: $180/year

If you have employees, you’ll need workers’ compensation insurance, but your rates will be based on the hazards that are common to your industry. Manufacturing businesses face higher threats for work-related accidents, which drives up the cost for workers’ comp coverage.

Dothan, AL Business Insurance Cost Factors

Crime and Theft

Property: You rely on your commercial property for daily operations, so what would you do if your property were damaged by theft, vandalism or arson? Commercial property insurance offers comprehensive protection by paying for damage.

Commercial Vehicle: Auto theft is an ongoing problem in Dothan, which could increase your rates for commercial car insurance. Even if rates are higher in this area, it’s money well spent because your policy will pay for damage if your company car is damaged in an accident or is stolen.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Dothan, AL workers comp cost looks like.

  • Retail Trade Industry: $1,540/year
  • Manufacturing Industry: $3,270/year

Workers’ compensation insurance is more expensive for manufacturing employees because these employees will face a higher risk for injuries on the job. Your premium for workers’ comp will be directly related to the risk associated with your industry, with construction and manufacturing jobs typically having the highest rates.

Enterprise, AL Business Insurance Cost Factors

Crime and Theft

Property: Property damage related to local crime can be a major headache for your business, causing serious financial burdens if you don’t have adequate insurance. In areas with higher crime, commercial property insurance is typically higher due to the elevated risks for theft, vandalism and arson.

Commercial Vehicle: Stolen vehicles are always frustrating, but it’s even more problematic if you were driving a company car. Commercial auto insurance includes protection for vehicle theft, giving you peace of mind that your business vehicles are always covered even if you face an accident or someone steals your car.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Enterprise, AL workers comp cost looks like.

  • Public Administration Industry: $180/year
  • Manufacturing Industry: $3,270/year

Workers’ compensation insurance is important for all businesses, but rates will be determined by your industry and the unique hazards in the workplace. Manufacturing businesses have higher premiums for workers’ comp insurance because there is a much higher chance that employees will get injured on the job compared with public administration jobs, which are generally safer.

Troy, AL Business Insurance Cost Factors

Crime and Theft

Property: In areas where property crime is more common, business insurance rates tend to be higher. For Troy businesses, this means you could see a slight increase in your commercial property insurance premiums, thanks to ongoing threats for vandalism, theft and arson.

Commercial Vehicle: If your company owns a vehicle or even a fleet of vehicles, you will need to invest in commercial auto insurance. Rates are based on how many cars you need to insure along with the local risk for accidents and auto theft.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Troy, AL workers comp cost looks like.

  • Manufacturing Industry: $3,270/year
  • Education Services Industry: $180/year

Workers’ compensation insurance can dramatically differ in price from one industry to the next. Your rate will depend on the hazards in your workplace. Manufacturing jobs are typically more dangerous than jobs in the educational field. The increased risk for work-related injuries makes rates for workers’ comp coverage climb.

Auburn, AL Business Insurance Cost Factors

Crime and Theft

Property: Severe weather isn’t the only risk your commercial property will encounter. Local crime can also be a problem, with vandalism and theft leading to numerous business insurance claims each year. Commercial property insurance is the best way to protect your business in case of damage.

Commercial Vehicle: Vehicular theft continues to be a concern in Auburn, driving up rates on commercial auto insurance. Your company’s premium will be based on several factors such as the number of vehicles you need to insure, the types of vehicles you want to cover and the risk for auto theft in your area.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Auburn, AL workers comp cost looks like.

  • Education Services Industry: $180/year
  • Accommodation and Food Services Industry: $1,610/year

Every business in Auburn needs workers’ compensation insurance in place before hiring employees. Rates can vary dramatically from one business to the next, and it all depends on the hazards that are common to your industry. For businesses in the educational services field, workers’ comp coverage is quite affordable, thanks to the lower risk for job-related injuries. However, businesses in accommodations and food services will pay higher rates for worker’s comp insurance, thanks to increased hazards in the work environment.

Anniston, AL Business Insurance Cost Factors

Crime and Theft

Property: The property crime rate is high in Anniston. If your business property is damaged by vandalism, theft or arson, you can rely on your commercial property insurance to cover the cost of repairs. Your business insurance rates are based on several factors, but the local crime rate plays a big role in how much you pay for coverage.

Commercial Vehicle: Whether your business owns a single car or a fleet of delivery trucks, you’ll need commercial auto insurance. Rates are personalized for each business, with several factors influencing the final price. In cities where auto theft is common, rates tend to increase.

Workers Compensation

Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost. 

Based on a $100,000 annual payroll, here is what the two leading industries in Anniston, AL workers comp cost looks like.

  • Manufacturing Industry: $3.270/year
  • Retail Trade Industry: $1,540/year

Both of these sectors are major players in the local economy, but they carry unique risks and rewards. Workers’ compensation insurance rates are determined by the hazards employees encounter in the workplace. For manufacturing businesses, this means paying higher rates for workers’ comp protection due to heavy equipment and machinery that causes more frequent work-related injuries.