As a business owner in Alabama, you should consider getting general liability insurance to protect your business against various risks related to your daily operations. Choosing to run a business without this essential insurance may result in costly lawsuits and recovery costs that might be too much to bear.
According to the Bureau of Labor Statistics, private sector businesses accounted for more than 85 percent of Alabama’s 42,700 non-fatal workplace injuries in 2018. These incidents can disrupt your business operations and cause unnecessary financial stress. However, insurance can help to mitigate these issues.
If you own a small business in Alabama, this information will assist you in understanding Alabama General Liability insurance.
- Top 6 providers of general liability insurance in Alabama
- What does general liability insurance cover in Alabama?
- Is general liability insurance required in Alabama?
- Why small business in Alabama should get general liability insurance
- How much does general liability insurance cost in Alabama?
- How to find cheap general liability insurance in Alabama?
Top 6 providers of general liability insurance in Alabama
- CoverWallet: Best for Alabama small businesses to compare several general liability quotes
- Liberty Mutual: Best for healthcare and financial services companies in Alabama
- The Hartford: Best for growing companies and retailers in Alabama
- Chubb: Best for restaurants in Alabama
- Next: Best for contractors in Alabama
- Thimble: best for part-time gig workers in Alabama
CoverWallet: Best for Alabama small businesses to compare several general liability quotes
CoverWallet is a digital insurance broker where you can find quotes for insurance. The company is owned and managed by Aon, a British-American multinational financial firm. Coverwallet is the best option for companies that need to generate and compare the best quotes online for their business but do not have the time to look around for quotes. Although CoverWallet has no policy, they work with their partners to suggest the best available options to persons who need insurance for their businesses. The company uses a responsive website powered by artificial intelligence technology to find the right and most affordable quotes for you. The process takes about 5 minutes, but you might have to speak with their agent to get a quote in some cases.
Liberty Mutual: Best for healthcare and financial services companies in Alabama
Liberty Mutual is well-known for its insurance offerings, but it is the best general liability insurance provider for healthcare companies in Alabama. This carrier prioritizes the customer experience, making everything from getting quotes to filing claims as simple as possible. Healthcare companies can obtain the general liability insurance they require from numerous third-party agents who interact with their businesses.
The cost of Liberty Mutual’s general liability coverage varies depending on several factors, and the company does not provide cost information on its website. Furthermore, Liberty Mutual works with over 14,000 organizations, so there’s a chance you might qualify for a discount, such as through an alumni association.
The Hartford: Best for growing companies and retailers in Alabama
The Hartford is the best general liability insurance company for startups and growing businesses in Alabama. That’s because it provides a basic policy with generous limits, more endorsement options, and bundles of industry-specific coverages. This makes it ideal for most growing businesses.
The Hartford offers an excellent general liability policy for small businesses in low-to-medium risk industries such as retailers like groceries, as well as coverage for new business owners. It also offers specialty general liability insurance for high-risk businesses such as manufacturers, wholesalers, and distributors.
Chubb: Best for restaurants in Alabama
Chubb sells general liability in a BOP for small business owners, and it also offers standalone general liability. As a result, Chubb is a good choice for businesses like restaurants that need general liability coverage, but their property exposures are too high for a BOP. In any case, Chubb can provide general liability insurance to businesses with up to $30 million in revenue, making it a good fit for growing businesses.
Chubb also provides policy enhancements that can assist business owners in extending coverage to other entities as needed. However, unlike some other carriers, Chubb’s general liability policy does not automatically include any coverage.
Next: Best for contractors in Alabama
Next is not as old as most other companies in the industry. However, they are the best for general liability for contractors in Alabama. They offer highly customizable options that meet the needs of different contract workers across industries like child care, construction, etc. The beauty of using this company is that they have the best rates in Alabama, and they do not have any hidden charges. You can obtain your quotes from their website that is easy to use and navigate. Plus, if you are confused, they have a range of resources to help you understand general liability insurance and other types of business insurance policies.
Thimble: Best for part-time gig workers in Alabama
Thimble offers affordable monthly and on-demand general and professional liability insurance policies most suited for part-time workers and freelancers. These include pet sitters, personal trainers, photographers, event organizers, beauty professionals, landscapers, and everyone in between.
Small businesses with fewer than ten employees can benefit from Thimble’s flexible terms. That includes the ability to buy a policy for as long as you need it and the ability to extend, modify, or cancel your policy directly from the Thimble app.
What does general liability insurance cover in Alabama?
General liability insurance protects you from unanticipated costs associated with many common accidents that can affect your business and result in lawsuits. These include issues like the following:
- Injuries to non-employees like your clients or visitors
- Damage to other people’s property
- Libel or slander accusations from clients and competitors.
Is general liability insurance required in Alabama?
General liability insurance is not a legal requirement for business owners in Alabama. Alabama is a fault state with a contributory negligence system, which means that a plaintiff can only receive compensation if they bear no responsibility for an accident. In Alabama, non-economic personal injury awards are limited to three times the amount of damages, up to a maximum of $1.5 million. In Alabama, accidents and lawsuits (both legitimate and frivolous) do occur. If your Alabama business owns property or other valuable assets, you should invest in adequate commercial general liability coverage to limit your risk exposure.
Why Alabama small businesses should get general liability insurance
In simple terms, commercial general liability insurance will help you cover expenses when you injure someone or damage their property in an accident. It can also come in handy if you are accused of libel or slander. However, beyond the obvious, here are some other reasons why general liability insurance is so important, especially if you own a small business in Alabama:
Some organizations do not issue certifications to their members except they have general liability insurance and a certificate of insurance. If your company requires such certificates or accreditation by such a professional organization, it would be a wise decision to get general liability coverage.
It could help you secure more contracts.
General liability insurance demonstrates that your company is dependable and trustworthy. It gives clients comfort to know you will accept responsibility for your errors, which may give you a competitive advantage. Some companies require proof that you have this coverage before signing a contract with you. Without this coverage, you might lose such clients.
It allows you to concentrate on expanding your business.
With general liability insurance, you get a level of peace. You won’t have to worry about petty issues like what to do if a client trips and falls on your premises or other similar issues. As such, the coverage allows you to focus on growing your business rather than worrying about what might go wrong.
General liability insurance may be required as part of your commercial lease.
If you intend to lease commercial space, your landlord may request a copy of your general liability insurance certificate. Coverage is frequently required because it demonstrates that you will have the necessary financial protection to cover expenses incurred due to property damage or injuries sustained while conducting business in the leased space.
How much does general liability insurance cost in Alabama?
Small businesses in Alabama pays a median of $60 a month for a general liability insurance policy.
The cost of general liability insurance in Alabama varies by business. The industry where you work, the amount of coverage you want to purchase, and the size of your business all impact the price you’ll pay for coverage.
Your insurance costs are determined by the amount of risk you face in your industry. If your company operates in an industry more prone to accidents and injuries, you should expect to pay a higher premium for insurance. For instance, a farmer that works with dangerous tools every day would pay more for a premium than a school teacher who works with pen and paper.
The maximum amount of coverage
The cost of your general liability largely depends on your aggregate limit. This is the maximum amount of coverage available under your general liability insurance policy. The greater your total coverage limit, the more expensive your small business liability insurance will be.
You will likely pay less for general liability insurance for your small business if you choose to pay a higher deductible.
Other factors that affect the cost include your location, the size of your business, your annual revenue, and the business model you have. Rates are usually calculated at $1000 based on these above factors. Using the above, a small business in Alabama can pay between $300 and $2,500 per year with median of $720 for general liability insurance. Be sure to shop around with a few companies to compare several quotes before making your final decision.
How to find cheap general liability insurance in Alabama?
The following are some ways in which you can get deals on your general liability insurance:
- Pay in advance: although this is expensive, you will be saving a lot in the long run when you buy plans up to 6months or 1 year ahead. Most companies offer discounts to thank their customers for trusting them in advance.
- Ask for discounts: some carriers offer discounted sales at some time of the year for customers. Some have discounts for new customers and some other programs like that. So, be sure to ask if there are any price cuts available for you to enjoy.
- Reduce the risks associated with your business: Your premiums are calculated based on the inherent risks in your business. Therefore to fix the high cost of premiums, look into making your business less risky. You can do this by training your staff on safety measures and keeping your environment safer.
Look for package deals and remove unnecessary coverage: You will sometimes get better pricing if you buy multiple plans from the same company. While at it, ensure you read the terms, so you do not buy two plans that overlap.