Business Liability Insurance AL Policy Information
Business Liability Insurance AL. The Small Business Administration identifies three types of business liability insurance for the average small business. These include general business liability insurance, product liability insurance and professional liability insurance. Each of these have their own purpose and, depending on your business type, may or may not be of benefit to you. Of greatest benefit to almost all businesses is a general business liability insurance AL policy. This policy acts as the first line of defense against many liability claims against your business.
General business liability insurance AL comes into play if a claim is made against your business by a third party. This could be for an incident such as property damage or bodily injury as a result of an action of an employee or contractor. The general business liability insurance usually covers legal fees in defense of the company and has a maximum settlement or court award value that the insurance will cover. Though not required by Alabama law, most Alabama businesses choose to protect themselves from financial loss and maintain a general business liability insurance policy. A typical policy may include bodily injury and property damage, personal injury liability and legal defense and judgement.
Business liablity insurance AL protects your company from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Currently, the Pacific Research Institute ranks Alabama among the worst states when considering the legal climate for business liability. A state constitutional ban exists barring the legislature from setting certain limits in business liability lawsuits, leaving businesses open to financial ruin. It is advisable for all Alabama businesses to strongly consider commercial general liability insurance. It is your first line of defense against frivolous and legitimate claims and lawsuits.
Bodily Injury and Property Damage
The bodily injury and property damage liability portion of the general business liability insurance AL policy generally covers physical injury to a person other than an employee at your place of business.
It also covers physical injury caused by you or your employee in the course of business on another person's property. Medical payments for such injury are often part of the settlement. Also the coverage includes damage caused by you or an employee to another person or entity's property.
Libel, Slander and Copyright Infringement
The general business liability insurance AL policy also includes coverage for libel, slander and copyright infringement by employees acting on behalf of the business. It also covers the invasion of property or privacy and wrongful eviction and losses caused by your advertising. These instances involve damage that is alleged to be caused by you or an employee against an individual or another.
Legal Defense and Judgements
Lastly, the typical business liability insurance AL coverage provides protection for legal defense and judgement which generally includes costs of defense against lawsuits and judgement limited to coverage liabilities. This part of the policy can be invaluable when settling lawsuits. Legal representation to handle the matter provides a sense of security in dealing with these matters.
Why You Need Business Liability Insurance AL
The business liability insurance AL can help protect businesses by covering legal claims. Policies can be tailored to meet the specific needs of the business by adjusting coverage amounts, deductibles and varying the dollar limits of the coverage. By adjusting deductibles and coverage amounts you will find a policy to meet your needs while staying within your budget.
Each claim can result in a devastating financial cost to a small business. Customer slip and fall claims have the highest rate of occurrence in business liability. Some estimates have the average payout for these types of claims at well over $30,000. These happen more often than you can imagine. The injured party generally has to show that the business was negligent, but sometimes that is not the case. An employee mops the floor and forgets to put the "wet floor" sign up and a customer slips and gets injured. Another example is a customer tripping over a sidewalk crack outside the business.
One such slip and fall accident in Alabama resulted in a $250,000 pre-trial settlement to the claimant for an injury in small grocery store. The individual walked down the aisle of the store and slipped on some spilled liquid laundry detergent. This resulted in a significant injury to the claimant, requiring medical attention and loss of work.
Ranked next is a customer injury and damage claim which often costs the business in excess of $40,000. Very similar to slip and fall, the customer has been injured through an act either through an action or through negligence. Recently in Alabama, a female was awarded $300,000 after she was injured during a robbery. It was determined that the business was negligent in the provision of security in a high crime area and that they were liable for the customer's ideuries.
Reputational harm claims are also among the most frequent business liability insurance claims in Alabama with an average settlement of $50,000. In this internet age, reputational harm cases are on the rise. The unauthorized use of a picture that can negatively impact a person or business reputation is an example of this. A negative, hostile online reaction by an employee to a review or blog could be another example. In cases where a lawsuit is filed, the average can run up to $100,000 with legal fees and court costs. In Alabama, jury awards can be even higher due to the legal atmosphere. Though most defamation cases have historically centered on the media, claims against employers have been made with significant awards made to former employees. Former employees proving that employers make false statements that negatively impact their earning potential are among these cases.
Choosing the Best Policy for Small Business Needs
Insurance rates can be highly competitive and vary by area, coverage type, deductibles, limits and other variables. This is true for general business liability insurance AL. In addition to providing you the best coverage, a commercial insurance professional work with you to understand your business needs and develop a plan to manage your unique risks.
Alabama Economic Data, Regulations And Limits On Commercial Insurance
Every business-minded person who is looking into opening a business knows that location plays a huge role in their success. It's important to ensure that the area where you're thinking establishing a business is conducive to your industry. Additionally, it's important to have a firm understanding of the rules and regulations that pertain to commercial operations in the area.
If you're an entrepreneur who is thinking about starting a business in the state of Alabama, read on to find an overview of The Heart of Dixie's economic data and commercial insurance requirements.
Economic Trends For Business Owners In Alabama
Unemployment rate is an important factor that prospective business owners should take into consideration before establishing a corporation, as it directly reflects the labor market of the area. A low rate of unemployment indicates that there are enough jobs to support the overall population, and jobs indicate that local businesses are successful.
This information directly reflects whether or not the economy of a state is healthy enough to support new businesses. As per the Bureau of Labor Statistics, Alabama's unemployment rate was 2.7% as of 2020, 0.8% lower than the national average of 3.5%. This is a good sign for entrepreneurs who are considering establishing a business in the state.
Birmingham is one of the top cities for business in Alabama. It's considered the hub of technological growth in the state, and is the site for numerous tech startups. Huntsville is also a key location for startups in the tech industry, as it's regarded as one of the most "tech-friendly" cities of the Southern United States. Montgomery and Tuscaloosa are also two cities potential business owners might consider setting up shop in the state of Alabama.
While several industries do well in the state, the following key sectors are experiencing the most growth in AL:
- Aerospace and aviation
- Beverage production
- Chemical development
- Corporate operations
- Metals, such as iron and steel
Commercial Insurance Requirements In Alabama
The Alabama Department of Insurance regulates insurance in AL. Alabama mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alabama requires you to have worker's compensation insurance if you have 5 or more employees on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Alabama also requires all business-owned vehicles to be covered by commercial auto insurance. Other insurance policies that business owners in AL need to invest in depend on the specific industry.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- Event Cancellation
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Workers Compensation Insurance
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
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Also learn about Alabama small business insurance requirements for general liability, business property, commercial auto & workers compensation including AL business insurance costs. Call us (205) 855-5999.