Best Small Business Insurance In Alabama (rates from $47/month)

Written By Licensed Agent Sa ElSeptember 7, 2021

If you are one of the 397,000 Alabama small business owners, entrepreneurs, freelancers, or sole proprietors, you must purchase enough small business insurance for your company.

The business world is brutal, and it can be hard to find the proper insurance needs.

Small enterprises face many risks and dangers that larger companies with bigger budgets for general liability coverage do not typically encounter.

We made this quick and easy guide to help you buy small business liability insurance in Alabama. You'll learn about costs, what's covered, exclusions, and more.

Best Overall


simply business logo

Simply Business is an online small business insurance broker, offering customers general liability and professional liability insurance coverage. Their primary focus is on professionals who need affordable business coverage, fast and online.

More Of The Best Cheap Small Business Insurance Companies In Alabama Below...

Best For Workers Comp Coverage


huckleberry logo

Huckleberry is best for small business owners in need of worker's compensation coverage (worker's comp) and is our second pick

Click below to get an accurate quote.

Best For Any Business Size


coverwallet logo

Coverwallet is a one-stop-shop for business coverage regardless of size. Their low rates and online application, earned them 3rd.
Click below to get an accurate quote.

Best For Cyber Insurance


cyberpolicy logo

Cyber Policy is an insurance marketplace for business insurance. Their primary focus is cyber insurance and they are our fourth pick.

Click below to get an accurate quote.

How Much Does Small Business Insurance Cost In Alabama? 

Customers pay an average of $47 per month for small business insurance in Alabama. But—and this is crucial—the average costs can't tell you what your premiums will be. Insurance rates can vary significantly depending on the industry, where you live in Alabama, and how much your insurance needs change. As a result, your premium might be higher - or drastically lower.

Who Has The Cheapest Small Business Insurance In Alabama? 

Cover Wallet has some of the cheapest Alabama business insurance rates. 

They provide one of the simplest and quickest methods to obtain liability coverage for your company in Alabama.

However, small business owners should compare rates and policies with multiple companies to ensure they get the best deal for themselves.

What Factors Impact Alabama Business Insurance Premiums?

The cost of policies in Alabama is determined by various factors, including the types of services or goods you offer, the number of employees you have, how long you've been in operation, and your claims history.

Typically, your policy's maximum coverage is restricted to a specific amount throughout the term. The following are some of the most important factors that influence Alabama business insurance costs:

  • Your Claims History - Like car insurance, the more claims you have, the higher the costs can become. If you have claims on your policy, your premium will usually increase.
  • Deductibles - Low deductibles for Alabama business coverage imply higher premiums, as they do with medical insurance. If you raise your out-of-pocket expenses (deductible), your premium is likely to drop.
  • Experience - A company with greater expertise may generally get lower premiums than a less experienced company.
  • Gross Sales - The more revenue you make, the higher your monthly premiums could become. Usually, as your revenue increases, so will the things you need to protect. So, if you are a business owner making less than $50,000 a year, your premiums may be lower than a larger company that earns $3,000,000 a year.
  • Industry - If you have a company like an accountant, your premiums may be lower than those of a roofing company since the risks for bodily harm and damage to your property is more significant.
  • Policy Limits - You can choose how much coverage you want, and you will generally pay more for higher limits. A $2 million limit per claim in a liability policy, for example, will be more expensive than a $500,000 limit.
  • Population and Crime Rates - Small companies in safer locations can save money on property insurance covering theft and vandalism. Smaller towns with less foot activity may save money on their insurance, which protects against customer claims. A small company owner in a large city, on the other hand, might pay more for this coverage.

THE SIMPLY INSURANCE WAY

Small Business Insurance made easy.

Agents not required.

Get quotes and sign up online without talking to an agent. However, we are here if you need us. 

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Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.

Coverage in minutes.

You can get small business insurance within minutes of getting your quotes and applying online.

What Are The Most Common Types Of Business Insurance In Alabama? 

You might only need one policy for your company; however, it's best to know about the common options and what is or isn't covered in your policy. These policies can protect your company from all sorts of things including advertising injury.  

Below we detail the most common coverage types: 

General Liability

In Alabama, general liability insurance protects small company owners from financial losses and lawsuits that occur if someone suffers a physical injury because of your actions or you damage someone else’s property. 


Best For:

  • Protecting against customer injuries at your firm.
  • Customers' property that has been damaged.
  • Libel or slander lawsuits - (the most common types of defamation lawsuits.)

Professional Liability (Errors & Omissions)

This policy is also called errors and omissions insurance or e&o coverage, and it protects experts whose work is based on their expertise. It covers claims filed by clients against professionals for mistakes and missed deadlines.


Best For:

  • Mistakes and oversights in the workplace
  • Lawsuits against professional negligence
  • Incomplete work or missing deadlines

Workers Comp Insurance

Workers' compensation coverage may be a lifesaver if you or an employee suffers an injury on the job since it covers medical treatment and lost income. If you don't have workers' comp, your out-of-pocket costs could rise dramatically after a workplace accident.


Best For:

  • Medical expenses for employees
  • Wages that have been partially missed
  • Lawsuits regarding employee injuries

Cyber Insurance

This insurance policy helps Alabama companies recover from data breaches and cyberattacks by reimbursing costs for client notification, legal fees, and other associated expenses.


Best For:

  • Breach of privacy and data protection claims
  • Expenses related to notifying a client
  • Costs associated with monitoring fraud

Contractor Insurance

Construction businesses and general contractors operate in hazardous environments and face high risks. Contractor liability policies help pay expenses related to third-party injuries and property damage.


Best For:

  • Customer injuries & damage to property
  • Libel and slander
  • Product liability

LLC Insurance

Limited Liability Company Insurance (LLC insurance) is a specialized form of individual insurance protecting LLCs from liability claims. It protects LLCs against various liabilities, including bodily harm and property damage caused by your business, employees, or products.


Best For:

  • Protecting your business
  • Product liabilities
  • Employee liabilities

Business Owners Policy (BOP)

This policy bundles property insurance and a general liability plan into one product. It's often the most cost-effective type of commercial insurance for a Alabama small business owner.


Best For:

  • Injuries to customers
  • Damaged customer property
  • Damaged business property

Home Business Insurance

Home-based business plans cover the expenses of property and liability risks incurred by business owners that operate out of their homes. Consider purchasing this coverage if you maintain supplies, equipment, or other company assets at your house or have clients visiting.


Best For:

  • Clients injury when visiting your home for business
  • Damage to your business property in your home
  • Damage to client property

As you can see, there are several options and it can become more complicated than that as your firm grows. 

Which Industries Buy Business Policies In Alabama The Most?

Below is a list of industries that most often purchase insurance for their new company or startup: 

  • Landscaping & Lawn Care
  • Food & Beverage
  • Legal
  • Accounting & Finance
  • Retail
  • Hair & Beauty
  • Fitness
  • Day Care
  • Commercial Cleaning