Small Business Insurance Alabama

Accidents involving injuries and property damage can be costly, which is why many small business insurance packages Alabama commercial general liability coverage (sometimes called business liability insurance).

If someone other than an employee claims that your business caused injury or damaged their property, general liability can help pay for damages, including the cost of medical bills and replacing property.

For example, if a customer accuses the owner of a Huntsville-based retail store of negligence after they fall on a slippery floor, general liability insurance would come into play. It could help the retailer pay the customer’s medical expenses for injury and possibly avoid a lawsuit by settling out of court.

Another reason to have general liability insurance: Many commercial landlords will require it before offering your business a lease.

Most small businesses based in Alabama are required to carry workers’ compensation insurance if they have five or more full-time or part-time employees, except for companies involved in building single-family homes.²

This type of insurance helps employees who get hurt at work cover injury-related expenses, including medical costs and some lost wages while they recover. Alabama state law exempts business in very small communities from carrying workers’ comp coverage, but we strongly recommend it for almost all businesses with employees.

For instance, an employee of a landscaping firm in Birmingham requires a hospital visit after accidentally backing a riding lawnmower into a deep ditch. The landscaping business’s workers’ comp coverage helps cover the employee’s medical costs to reduce the financial strain from the accident.

Alabama requires commercial auto insurance policies to include coverage for both property damage and accident injuires.³

Commercial auto coverage in Alabama is important if you or your employees drive for business purposes, even if you use your personal vehicles. That’s because personal auto insurance usually won’t cover accidents or damages that happen when someone is behind the wheel on business.

Here’s an example of how commercial auto coverage can help:

If restaurant employees are returning from a catering drop-off in Birmingham and have an accident that damages the company van, commercial auto can help pay to repair the van and cover the employees’ medical expenses.

Hired and non-owned auto insurance is an add-on to commercial auto coverage that can help pay for injuries and property damage that happens when employees sometimes rent cars for work or drive their own vehicles.

Alabama commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water damage, a fire or wind damage.

It’s important to read your policy documents carefully to make sure there are not any exclusions for your business. Some locations prone to flooding or hurricane damage might not be covered.

Our licensed insurance agents are available to help if you have questions.

Professional liability insurance, also known as errors and omissions insurance, can help protect small businesses from professional negligence. If someone claims that your business made an error that caused them financial losses, this kind of coverage can help cover legal costs and pay for some damages.

For example, if a real estate agent in Tuscaloosa is accused of misrepresenting how much acreage a property included and is sued by a client, professional liability could help. This type of policy could help cover the agent’s legal defense costs and pay for damages.