What insurance is required for a small business in Alabama?

Businesses in Alabama are required to have workers' comp insurance if they have five or more employees. Workers' compensation insurance helps pay for expenses related to employees becoming injured or ill while working for you. A BOP combines property and liability coverage into one easy-to-manage policy.

What is the cheapest general liability insurance in Alabama?

We found that Thimble is both the best and most affordable option for general liability insurance in Alabama. With Thimble, limited liability companies (LLCs) with 20 employees pay an average of $62 per month, while sole proprietors without employees pay $22 monthly.

What type of insurance is mandatory in Alabama?

Alabama law only requires liability coverage in order to be legal. However, consider these additional coverage options to expand your insurance coverage and gain more protection.

What is general liability insurance in Alabama?

Alabama Small Business Insurance. General liability insurance, known as Commercial General Liability (CGL), protects your business from another person or business's claims of bodily injury, associated medical costs, and damage to property.

What insurance do I need to run my own business?

Six common types of business insurance Insurance type Who it's for General liability insurance Any business Product liability insurance Businesses that manufacture, wholesale, distribute, and retail a product Professional liability insurance Businesses that provide services to customers 3 more rows

Does Alabama require business insurance?

Alabama requires workers' comp for businesses with five or more employees. It also protects sole proprietors from work injury costs that health insurance might deny.

What type of insurance is sold to small businesses?

At minimum, you should start with these types of small business insurance: General liability coverage. Workers' compensation coverage. Commercial auto coverage.

What is a small business property insurance?

Business property insurance covers your buildings, the contents within those buildings, and loss of income if you're out of business due to a claim. It can help protect your business in case of unexpected accidents or tragedies like fire, theft, wind damage, or even a building's collapse under the weight of snow.

How to get a state business license in Alabama?

Here's how to get a business license in the state of Alabama in five steps: Name and Form Your Company. ... Apply for Your Alabama Business License. ... Determine Which Other Local Licenses May Be Applicable. ... Apply for Any Additional Statewide License(s) You Need. ... Apply for Federal Licenses and Tax Treatment (as Necessary) Feb 13, 2024

Is Simply Business legit?

Is Simply Business legit? Simply Business is a good solution for business owners who want to compare a wide variety of insurance options at once. It has no local agents, so it's not a full-service solution — but it does provide an easy way to find affordable coverage online.

Alabama (AL) Business Insurance (2024)

Choose The Hartford for All Your Alabama Business Insurance Needs

Alabama is home to 392,939 small businesses, making up 99.4% of businesses in the state. Those small businesses employ 775,829 employees. In this case, small businesses are defined as businesses with fewer than 500 employees.¹ Alabama businesses have been protecting themselves with small business insurance from The Hartford for hundreds of years. It’s no wonder more than 1million small business owners trust The Hartford for their business insurance needs.Learn more about Alabamasmall business insurance,commercial property insuranceand Alabamabusiness insurance:

Types of Alabama Business Insurance Offered

Alabama Business Owner’s Policy

An Alabama business owner’s policy, also known as a BOP, is one singular policy that combines business property insurance and business liability insurance. BOP coverage can help cover your business from claims resulting from things like robbery, fire or other disasters. For example, when a fire destroyed part of a restaurant’s kitchen, a major financial loss was endured. The restaurant’s Alabama business insurance policy helped covered the costs associated with the damages. BOP insurance coverage also helps protect your business from claims involving bodily injury, personal and advertising injury, and property damage that could arise from your Alabama business operations. For example, say an employee trips on a lose floor tile, falls, and breaks their ankle. As a result, they file a claim against their employer. The employer’s Alabama business owner’s policy will help cover the costs associated with the claim.

Alabama Data Breach Insurance

Data breach insuranceand cyber liability insurance from The Hartford helps cover the costs of a data security breach. Depending on the coverage you select, this can include identity protection solutions, legal fees, PR, liability and more. Data breach coverage is essential for helping enable you to immediate action to mitigate the potential damage and restore public confidence in your business after enduring a breach or cyber attack.

Cyber liability and data breach insurance can help lower the risk of litigation and other penalties when a data breach or loss takes place and when providers offer access risk management services to policyholders. These services can provide access to professionals who can help your Alabama business comply with laws and regulations and create policies and procedures designed to prevent data breaches and minimize losses if one occurs.

A Hartford representative can help you find the best data breach insurance coverage for your AL business. Consider data breach insurance if:

Alabama Employment Practices Liability Insurance

Employment practices liability insurance(EPLI) from The Hartford is designed to help your Alabama business prevail if you face an employment-related claim related to:

Harassment
Retaliation
Discrimination
Violation of FMLA
Wrongful termination
Wrongful discipline
Wrongful failure to promote

The costs associated with an employment practice-related claim can be staggering. Employers in Alabama may face several claims and lawsuits around wrongful termination, discrimination, and more. Also, keep in mind that a business owner does not have to be in the wrong to be sued. The right insurance to cover defense costs and damages related to these claims can be crucial to protecting your business’s financial well-being. The Hartford provides comprehensive and customizable EPLI coverage that’s designed to protect you and your business.

Alabama’s Workers’ Compensation Insurance

Workers’ compensation insuranceprovides benefits to employees for on-the-job injuries or illnesses including medical care, wages from lost time at work, and more. Workers’ compensation insurance coverage can also provide a deceased worker’s family with financial benefits. If the family of an employee decides to sue your Alabama business, workers’ compensation insurance can help cover the legal fees associated with the claim.

Workers’ compensation insurance can help protect your business and employees if:

An employee injures his arm lifting a heavy box of office supplies and the employee requires a visit to his doctor, medication, and physical therapy.
An employee returning to the store after meeting with a client is injured in a car accident and requires hospitalization.
An employee slips in the office kitchen, injuring himself and a coworker while falling. Both employees require an emergency room visit and weeks to recover.

With worker’s compensation insurance, The Hartford can help cover the cost of medical expenses needed to treat these work-related injuries and illnesses. Workers’ compensation also helps employees in Alabama replace their income while they take time off to recover from an injury.

Alabama Minimum Business Insurance Requirements

The Alabama Workers' Compensation Law does not require you to have workers' compensation insurance coverage if you employ less than five full- or part-time employees. This includes officers of a corporation in any one business other than construction businesses or businesses that assist in the on-site building of new single-family, detached residential dwellings.

Employers of domestic employees, farm laborers, or casual employees and municipalities who have a population of less than 2,000 (according to the most recent federal census) are not required to provide workers comp coverage. However they can elect to be covered by the provisions of the Alabama Workers' Compensation Law.²

Get a quoteon Small Business Insurance for your business today.

¹https://www.sba.gov/sites/default/files/advocacy/2018-Small-Business-Profiles-AL.pdf

² https://labor.alabama.gov/wc/insurance.aspx