Small business owners should be aware of the financial risks they are exposed to. Despite the company's size, there is always a chance of financial losses arising from the launch and running of the business. Securing a solid insurance policy for your small business is essential to safeguard your business efforts.

With that said, here are three insurance plans you should have as a small business in Alabama:

1. General Liability

General liability coverage protects businesses from legal claims of property damage, bodily injury, and advertisement-related losses resulting from the everyday activities of the business.

Bodily injury insurance provides coverage for medical expenses for anyone hurt on the business premises. This type of insurance helps pay for medical costs and offers protection from a potential lawsuit. Property damage liability helps with costs associated with a third party's property damage caused by the business. Personal or advertising injury coverage helps protect against slander, libel, copyright infringement, etc.

General liability is different from professional liability. Professional liability insurance will help protect you in the event of any mistakes made due to your professional services. In contrast, general liability will help protect against any incidents of non-professional negligence.

2. Workers' Compensation 

Workers' compensation insurance is mandated in Alabama for businesses with at least one employee, be it full-time or part-time. This insurance provides financial support to injured workers and their dependents in the event of death. Benefits may include immediate medical expenses, emergency services, partial or total disability, temporary or permanent disability, and death benefits, such as funeral services and other related costs.

Some workplaces and industries may be exempt from certain rules surrounding workers' compensation. This means that the regulations or laws related to workers' compensation may not apply to them.

3. Commercial Auto Insurance 

Commercial auto insurance provides financial protection for businesses that own or use vehicles for business purposes. It covers the cost of repairing or replacing a vehicle if it is damaged or destroyed in an accident and any liability and medical payments that might result from the accident. It also provides coverage for other risks associated with commercial vehicles, such as theft, vandalism, or fire.

Hired and non-owned insurance is a type of insurance purchased to provide coverage for vehicles borrowed or rented by a business, such as a rental vehicle. This type of insurance protects the business from potential losses due to accidents or other incidents involving the rented or borrowed vehicle.

Law-Mandated Insurance for Small Businesses

Businesses in Alabama must have certain types of insurance to operate legally. These may include workers' compensation insurance for businesses with a certain number of employees and other types of insurance that may be required to obtain licenses and permits. Although other types of insurance may not be required by law, businesses must have them to remain compliant and protect their operations.

Conclusion

Small business owners in Alabama should consult a qualified insurance broker to ensure they are properly protected in an accident or other unforeseen event. While it is important for small business owners to understand the different types of coverage available, it is equally important for them to understand their own business needs and budget. With the right insurance coverage, Alabama small businesses can be adequately protected from financial loss and liability.

At The Oakley Agency, we make insurance simple. Our goal is to protect your home, auto, family, and business. We want to help ensure that your business is protected now and in the future so you can be confident that it is covered, allowing you to focus on its success. If you need business insurance in Florence, AL, we’ve got you covered! Get in touch with us today and let’s talk!