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