Alabama Business Insurance FAQ - Quick Answers

Business insurance costs in Alabama are different for every company due to varying risk factors. While you can't know your exact costs for commercial coverage without quotes, you can understand what impacts them below:

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Safety practices in place
  • Past claims reported
  • Number of years in operation

There are several policies that could be necessary for your operation. In Alabama, you are required to carry workers' compensation insurance when you have 5 or more employees. You'll also be mandated to have the minimum limits of liability for any company-owned autos. When it comes to general liability, professional policies, and more, these are needed but not required by state law in most cases.

Business insurance in Alabama can cover a multitude of risks, but each policy is individualized to meet your operation's specific needs. Here are some coverages that could apply to your business:

If you own a small business in Alabama, your first business policy purchased is likely to be general liability insurance. General liability coverage is your primary policy that protects your business from a lawsuit arising out of bodily injury or property damage that occurs at or around your operation. 

Yes, if you have between 1 and 50 full-time employees in Alabama you can purchase coverage through any independent insurance agents that offer health coverage options. When you have over 50 full-time employees, you will be required by the Affordable Care Act to provide health insurance to your employees by law. Check with your local adviser about what is available for your small business. 

When it comes to finding small business insurance, you'll have options. In Alabama, Nationwide, Travelers, Liberty Mutual, and Progressive insurance companies are all highly rated for commercial protection. This is due to their expansive coverage offerings and excellent claims service for small business owners.

Do You Know What Your Business Insurance Covers in Alabama?

Find the Best Business Insurance in Your City

National Business Insurance Stats

Number of businesses in the US: 30,819,176

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 vehicles
Alabaster2,7621.670.78
Anniston1,99319.137.04
Athens2,2904.21.07
Auburn4,6591.751.14
Birmingham20,73812.138.32
Decatur4,9498.213.16
Enterprise2,2627.312.21
Foley2,0604.81.17
Ft. Payne1,7625.861.77
Gadsden3,38811.627.24
Huntsville16,8387.325.36
Mobile20,11810.464.42
Montgomery18,04310.334.89
Troy1,41610.022.92
Tuscaloosa6,8027.393.09
  1. Mobile, AL
  2. Business Insurance Common Coverage Options
  3. 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. 
  4. 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. 
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what costs for workers' comp for the two leading industries in Mobile, AL looks like:
  8. Manufacturing Industry: $3,270/year
  9. Retail Trade Industry: $1,540/year 
  10. Work-related hazards play a huge role in determining rates for workers' compensation coverage. Heavy machinery and more frequent accidents drive rates up when compared with the retail sector. 


  1. Daphne, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the costs for workers' comp for two leading industries in Daphne, AL looks like:
  8. Manufacturing Industry: $3,270/year
  9. Professional, Scientific, and Technical Services Industry: $180/year 
  10. Work-related hazards play a huge role in determining rates on workers' compensation coverage. 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.


  1. Foley, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the the cost of workers' comp for two leading industries in Foley, AL looks like:
  8. Retail Trade Industry: $1,540/year
  9. Construction Industry: $4,090/year 
  10. 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.


  1. Jackson, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the the cost of worker's comp for two leading industries in Jackson, AL looks like:
  8. Manufacturing Industry: $3,270/year
  9. Retail Trade Industry: $1,540/year
  10. These two top industries are the backbone of Jackson’s economy, but they face unique risks and rewards. Businesses in both manufacturing and retail 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 industry carries a much lower risk for employee accidents. That’s why workers' comp coverage is more expensive for businesses in the manufacturing industry.


  1. Montgomery, AL
  2. Business Insurance Common Coverage Options
  3. Property: About 1 in 24 Montgomery residents 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the cost of workers' comp for two leading industries in Montgomery, AL looks like:
  8. Manufacturing Industry: $3,270/year
  9. Public Administration Industry: $180/year
  10. 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 of work-related accidents, which drives up the cost for workers’ comp coverage.


  1. Dothan, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the cost of workers' comp for two leading industries in Dothan, AL looks like:
  8. Retail Trade Industry: $1,540/year
  9. Manufacturing Industry: $3,270/year
  10. Workers’ compensation insurance is more expensive for manufacturing employees because they 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.


  1. Enterprise, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the cost of workers' comp for two leading industries in Enterprise, AL looks like:
  8. Public Administration Industry: $180/year
  9. Manufacturing Industry: $3,270/year
  10. 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.


  1. Troy, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the cost of workers' comp for two leading industries in Troy, AL looks like:
  8. Manufacturing Industry: $3,270/year
  9. Education Services Industry: $180/year
  10. 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.


  1. Auburn, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. Commercial Vehicle: Vehicle 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the cost of workers' comp for two leading industries in Auburn, AL looks like:
  8. Education Services Industry: $180/year
  9. Accommodation and Food Services Industry: $1,610/year
  10. 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 accommodation and food services will pay higher rates for workers' comp insurance, thanks to increased hazards in the work environment.


  1. Anniston, AL
  2. Business Insurance Common Coverage Options
  3. 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.
  4. 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.
  5. Workers' Compensation
  6. 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. 
  7. Based on a $100,000 annual payroll, here is what the cost of workers' comp for two leading industries in Anniston, AL looks like:
  8. Manufacturing Industry: $3,270/year
  9. Retail Trade Industry: $1,540/year
  10. 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.