Business Insurance

Why Get Business Insurance in Alabama
Alabama residents have come to expect seasonal hurricanes. People living in Alabama have first-hand experience as to how much property damage these hurricanes can inflict and this especially holds true for business owners. No matter where you are located in the state, every Alabama business needs insurance coverage to protect against damages from strong winds and heavy rains that can interrupt or shut down business operations for days, weeks or even months. No one needs to be reminded of what happened in 2005 when Hurricane Katrina hit the Gulf Coast. The Federal Emergency Management Agency (FEMA) paid more than $278 million in claims. The widespread devastation was overwhelming in its scope and the aftermath is still being felt in some areas to this day. Needless to say, business insurance coverage can be an enormous help to entrepreneurs who are facing the consequences of a natural disaster.

Alabama Business Classification
During the initial insurance application, the insurance provider will need to determine if your company is eligible for liability insurance coverage and for what amount. A number of factors influence how a company is categorized. For example, both the services which a company provides and the exact nature of the business play a large role in determining the final cost of an insurance premium. Insurance companies make this decision by using their underwriting standards to place a company in a specific category which defines its risk. The premium is then calculated according to this risk factor. Additionally, statistical research is also done to check which industries have higher incidences of claims.

Types of Coverage for Alabama Business Insurance
In Alabama, the amount of liability coverage required for your business largely depends on the type of work that is done. The business may be a small office building for a law firm or it may be a big shipyard. No matter what type of business is being insured, the most important thing is to know how far your coverage extends. Any person who is injured on your business property has the ability to sue for damages. For this reason, it is very important that you have the proper insurance coverage to protect both you and your assets. In accordance with Alabama Law, Workers’ Compensation insurance is required for all companies with four or more employees.

Alabama liability insurance also comes in handy when unexpected circumstances may occur. As an example, let’s assume someone is injured due to an employee’s negligence. If the business is properly covered, liability insurance will pay for any expenses that arise from the resulting damages and injuries. This includes medical bills and lost wages as well as any legal expenses and court costs.

Other forms of injury that can be covered by Alabama liability insurance are as follows:

  • Advertising injury – a common type of injury done to another business organization. You may be sued if you advertise that your product is better than the competitor’s product thereby causing damages to that company.
  • Property damage coverage – will cover the damages to any property belonging to another person when your employee is at fault.
  • Personal injury – will pay for the medical expenses of the injured victim. These expenses can be extremely expensive due to healthcare costs.

Although the types of coverage offered to Alabama businesses are generally the same, the total cost of a premium is largely determined by what type of business is being insured and the risk factors associated with the business. As the business owner, you have the final say in what type of coverage you choose and also the amount of coverage you select. It’s important that both you and your assets are fully protected against loss. The price you pay for Alabama Liability Business Insurance is relatively small compared to the possibility of having to pay for any losses and damages on your own. Don’t risk losing your hard-earned business and potentially even more by not having the proper insurance coverage.