General Liability Insurance in Alabama

You can save up to 25% in discounts.*

General Liability covers a wide range of incidents

Slip-and-fall injuries

Slip-and-fall injuries

Someone trips at your business, breaks their leg and files a lawsuit. Excluding employees.
Property damage

Property damage

You accidentally damage a client or customer’s property.
Advertising injury

Advertising injury

You’re sued for improper image use in your advertising.
Legal fees & defense costs

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

General liability is just one type of small business liability insurance Alabama business owners may need. With additional coverage, you can help protect your business against other common risks.
Most Alabama business owners also consider these options:
Workers Compensation
Workers’ Compensation 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.
Commercial Auto
Commercial Auto insurance

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
Commercial Property insurance

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.
Errors & Omissions
Professional Liability insurance (E&O 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.

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Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased general liability insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.