Thanks to its low tax burden, top-tier infrastructure, and excellent training programs, Alabama is an ideal state to start a business. However, before opening a business in the Yellowhammer state, you must familiarize yourself with state insurance requirements.
Commercial Insurance Requirements in Alabama
Alabama requires two commercial insurance policies: worker’s compensation insurance and commercial auto insurance.
You’ll need worker’s compensation insurance if your business employs five or more people. However, this requirement is waived if you employ domestic workers, farm laborers, or casual employees. Workers’ compensation insurance covers an employee’s expenses if they become sick or get injured while on the job, typically covering loss of income and medical bills.
Commercial auto insurance is a must if you use a vehicle for commercial purposes. Such purposes include transporting business products to and from markets, making deliveries to customers, traveling to and from job sites, and traveling to meet customers and business partners. Required commercial auto insurance policies include liability and property damage coverage.
How Much Insurance Do You Need?
The amount of insurance you need to run an Alabama-based business successfully will depend on your industry, number of employees, products/services, exact location, and other factors. It’s a good idea to get professional help when assessing commercial insurance coverage options, and the Mitchell Agency LLC is a great source of information for business owners from all walks of life.
At the Mitchell Agency LLC, we have many years of experience helping local business owners find and purchase commercial insurance policies and policy bundles. We offer a host of policy options and friendly, professional assistance to make it easy for you to find and buy the best coverage for your business. Contact us to find out more or get policy quotes.
