Alabama Business Insurance
Customized protection for your Alabama business
As an Alabama business owner, you should consider several types of business insurance to protect against a wide range of risks related to your daily operations, employees and business property. Choosing to run a business without insurance might result in managing costly lawsuits and recovery expenses on your own.
In 2018, private sector businesses accounted for over 85% of Alabama’s 42,700 non-fatal workplace injuries, according to the Bureau of Labor Statistics. Incidents like these can disrupt your business operations and add unnecessary financial stress. Insurance helps minimize these problems.
Shop for general liability, a BOP, workers’ compensation and more through the Progressive Advantage® Business Program. Our licensed specialists can help customize an Alabama business insurance policy to your needs.
Types of AL business insurance
This is the most common business insurance coverage and nearly all businesses in Alabama should have it. It protects against third-party bodily injury and property damage, as well as personal and advertising injury.
Commercial auto provides liability and physical damage coverage for your business vehicles. Most personal auto policies don’t cover vehicles used for business, which includes transporting supplies or traveling between job sites.
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.
Business Owners Policy (BOP)
A BOP combines property and liability coverage into one easy-to-manage policy. It’s a great option for small to medium-sized businesses that rent or own commercial property such as a storefront, warehouse or office building.
Alabama businesses that offer professional services should consider this coverage. It protects businesses from claims of professional negligence, both actual or alleged, and helps pay for defense costs. It’s also known as errors and omissions insurance (E&O).
This protects against incidents like data breaches and cyber attacks. It includes first-party and third-party protection for things like investigative services, data recovery and legal costs. Businesses that store or manage customer data, like credit card information, typically need this coverage.
How much does business insurance cost in Alabama?
The cost of an Alabama business insurance policy depends on several factors including your coverage needs, industry, location and size. For example, a business located near the coast in Mobile can expect a different rate than a business located inland in Birmingham.
The most influential of these factors is your profession. Businesses are typically rated on the risks associated with their industry and the type of work that’s done. Tree trimmers, manufacturers and general contractors are considered high-risk and will likely pay more for coverage.
Alabama business insurance requirements
Alabama’s workers’ compensation law requires businesses that regularly employ five or more people to carry workers’ comp insurance. Employers of domestic employees, farm laborers and casual employees are exempt, but can choose to be covered by the provisions of the law.
Employers can get workers’ comp by purchasing coverage through an insurance carrier, joining a group self-insurance fund or qualifying to be self-insured.
While other types of business insurance aren’t legally required in Alabama, you probably should have some coverage to protect you from unexpected accidents and mishaps. Business partners and prospective clients usually require you to have coverage as part of their contracts.
Resources for Alabama small business owners:
Alabama professions we insure
We help small business owners from a wide variety of industries, including these common professions:
- Food trucks
- Cleaning services
- Dry cleaners
- Personal trainers
Browse more examples of professions we insure.
Why choose Progressive?
Options – We can help you secure coverage at any stage of your business’s development with the flexibility to adjust your policy as your business changes. Our agents will work with you to make sure you’re getting protection that meets both your needs and budget.
Experts – As the #1 Commercial Auto Insurer in America*, you can trust us with all your business insurance needs. Our team of specially trained, in-house agents can assist you every step of the way to make sure you’re getting the best coverage for your business.
Convenience – There are several ways to get a quote whether you need a single Alabama policy or a combination of business insurance coverages. Simply start a quote online or call us to speak with an agent.
Business insurance for all Alabama cities
We can customize business insurance in all Alabama cities, including, but not limited to:
*No. 1 commercial auto insurer from SNL Financial’s 2019 national written premium data.