Do You Need Small Business Insurance in Alabama?
Alabama is the epitome of southern hospitality. A wave, a smile, and a welcome go a long way. The heart of Dixie is home to the rocket city and so much hometown pride. That includes support for local small businesses from Florence to Mobile! Business is vital to Alabama’s success. Dothan is the peanut capital of the world! Important small business industries in Alabama include support services, construction, professional and technical services, and retail.
- There are over 408,300 small businesses in Alabama
- 99.4% of businesses in Alabama are considered small businesses
- Small businesses employ over 809,000 people in Alabama
Alabama has one of the most varied geographies in the US—from popular beaches to mountains and riverbanks. Alabama is full of opportunities for small businesses! It is essential to consider small business insurance to help protect your Alabama business. Small business owners need to know that Alabama may require certain types of insurance related to specific professions—and some insurance coverages are required for all businesses. Find out more here!
Required Business Insurance Coverage in Alabama
Commercial Auto Insurance.
If your small business owns vehicles In Alabama, you must purchase commercial auto insurance. The state requirement includes minimum coverage requirements for business-owned vehicles of $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage liability.
Workers’ Compensation Insurance.
Alabama requires small businesses with five or more full- or part-time employees to carry workers’ compensation coverage. Officers of a corporation and members of a limited liability company (LLC) are counted as employees. Construction companies are required to have workers’ compensation regardless of the number of employees in Alabama. Employers of domestic employees, farm laborers, and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to obtain workers’ comp, though it is still recommended. Workers’ compensation typically covers related medical and legal costs, providing relief for employees and businesses. Employees agree not to sue your business over accidents or related illnesses.
Recommended Business Insurance Coverage in Alabama
Small Business Owner’s Insurance.
A Business Owner’s Policy (or BOP) bundles both property damage insurance and general liability into one comprehensive policy for small business owners in Alabama. All the convenience and lower costs! A BOP typically covers losses and damages related to buildings used for business purposes, customer medical expenses for onsite third-party accidents like a slip and fall, and advertising damage claims.
General Liability Insurance.
A General Liability policy can be obtained as a separate minimum coverage when property insurance isn’t needed. If you lease space for your Alabama small business, the commercial property contract may require General Liability Insurance. General Liability Insurance helps ease the financial burden of customer injury and typically covers third-party risks, including property damage, and slander and libel lawsuits.
Professional Liability Insurance.
Professional Liability coverage (or errors and omissions/E&O) covers most work mistakes and errors, missed deadlines, incomplete work, and professional negligence lawsuits. Professional Liability coverage is ideal for small businesses in Alabama that provide expertise as a service, like accounting, architecture, technical services, design, or hairstyle services, as it can protect them from related damage claims.
Cyber Liability Insurance.
Cyber threats in Alabama are increasing, including threats toward small businesses. Data breaches are at an all-time high. Cyber Liability coverage is recommended for Alabama small businesses to help manage the results of a cyberattack, including help paying for customer notification and fraud monitoring costs, as well as associated legal fees. Cyber insurance helps businesses recover from ransomware, phishing, and other common cyberattacks.
Our Small Business Insurance Company Is Here to Help
- QDoes B2Z offer small business coverage in Alabama?
- QHow do I get a quote for my small business insurance in Alabama?A
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