General Liability covers a wide range of incidents
Slip-and-fall injuries
Someone trips at your business, breaks their leg and files a lawsuit. Excluding employees.
Property damage
You accidentally damage a client or customer’s property.
Advertising injury
You’re sued for improper image use in your advertising.
Legal fees & defense costs
You need an attorney to defend your business in a lawsuit after a claim.
What is General Liability insurance coverage?
Small business owners in Alabama can benefit from general liability insurance because of the important benefits it may offer. This coverage can provide protection from financial losses when common accidents like these occur:
- Slip-and-fall injuries
- Other injuries affecting someone related to your business, excluding employees
- Damage to someone else’s property
- Accusations of libel, slander or copyright infringement
Also called commercial general liability (CGL), this type of Alabama liability insurance can help businesses in a number of different situations, such as:
- A client walks through a worksite and trips over a toolbox belonging to a Mobile concrete contractor, requiring emergency medical treatment. General liability insurance can help cover legal fees and damages if the contractor’s business is found liable.
- You don’t seal a pipe tightly enough while replacing a Birmingham client’s kitchen plumbing and the basement floods when the water gets turned back on.
An Alabama general liability insurance policy can help cover costs associated with these and other types of business-related incidents, including accusations of slander or libel.
Is General Liability insurance required in Alabama?
Alabama state law does not require small businesses to carry general liability insurance.
However, some cities and counties in Alabama may have their own general liability requirements which apply to specific types of work.
Despite not having statewide requirements for general liability insurance, Alabama entrepreneurs often get this coverage for the following reasons:
Financial protection
Alabama small businesses may have more protection from financial repercussions when an accident happens if they have general liability insurance. Banks and lenders may also require this type of Alabama business insurance.
Employment contracts
Some client’s work contracts may require proof of coverage for general liability insurance. You may lose out on potential jobs if you don’t have Alabama general liability insurance coverage.
Commercial lease agreements
Commercial property leases in Alabama might include a requirement for general liability insurance. Alabama property owners and management companies may refuse to rent to you without this coverage.
Licenses and permits
In some industries, a valid general liability insurance policy is needed to get a business permit or license.
For example, there are special requirements for liability insurance for contractors in Alabama. To obtain a license in this state, you must have general contractor liability insurance. Alabama contractors also need to submit proof of this coverage to get a business license.
See our guide to Alabama general contractor license and insurance requirements for more details.
What types of businesses might need General Liability insurance in Alabama?
Most Alabama businesses can benefit from general liability insurance since it can help cover everyday risks that apply across many different industries.
Even if your business operates with lower levels of risk, general liability insurance coverage could still offer important protections if accidental injuries or property damage occur.
If a customer slips and falls on a wet floor in a Montgomery clothing store, for example, general liability insurance can help cover related costs.
How much does General Liability insurance cost in Alabama?
The cost of general liability insurance in Alabama varies based on a number of factors, including:
- The industry you’re in and the type work you do
- How many employees work for you
- Where your business is located
- Past insurance claims you’ve made
- The policy limits you select
NEXT offers affordable liability insurance for businesses in Alabama. Our premiums are priced at $45 or less per month for 50% of our U.S. customers.**
Learn more about general liability insurance costs.
How NEXT Insurance helps Alabama businesses
NEXT provides Alabama general liability insurance policies designed for small businesses and self-employed workers.
It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.
Start an instant quote online today.
Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.
Other types of Alabama business insurance
Most Alabama businesses with five or more employees must have workers’ compensation insurance. This type of insurance could provide important coverage for lost wages and medical expenses if an employee gets hurt on the job.
Learn more about workers’ compensation.
If you or one of your employees gets into an accident in a work vehicle, commercial auto insurance can help cover related costs such as medical bills, towing and property damage.
Commercial auto insurance is required for all vehicles in Alabama, with minimum coverage of $25,000 per person, $50,000 per accident, and $25,000 for property damage.1
Learn more about commercial auto.
Commercial property insurance can help protect the brick-and-mortar structures and physical assets you need to operate your business, including equipment, inventory and furniture. This insurance can help cover replacement or repair costs if your business is affected by a covered event, such as a fire or water damage from a burst pipe.
A business owner’s policy (BOP) combines commercial property insurance and general liability insurance. A BOP is often less expensive than buying the policies separately.
Learn more about commercial property insurance.
If a client or customer claims that a mistake you made while performing your job has cost them money, professional liability insurance can help protect you financially. Also called errors and omissions, this type of coverage is commonly bundled with general liability insurance for small businesses.
Learn more about professional liability.
Sources
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Learn more about insurance options in the states where you work.
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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
