When selecting the best general liability insurance for businesses in Alabama, we considered several factors, such as affordability, customer satisfaction, financial stability and the simplicity of the online quote process. We found that Thimble is both the best and most affordable option for general liability insurance in Alabama. With Thimble, limited liability companies (LLCs) with 20 employees pay an average of $62 per month, while sole proprietors without employees pay $22 monthly.
Best General Liability Insurance in Alabama (2024)
Updated: October 29, 2024
Advertising & Editorial Disclosure
Best General LiabilityAlabamaBest General Liability Insurance in Alabama
Best Overall - Thimble
Cheapest - Thimble
Best for Employers - Nationwide
Best for Sole Proprietors - Thimble
Why Trust MoneyGeek? We collected 1,229 general liability insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best general liability insurance companies for small businesses in Alabama.
Coverage costs and company information for general liability insurance providers in Alabama were last updated in 2023.
1,229Quotes Analyzed
6 Companies Compared
50 Zip Codes
Best Overall General Liability Insurance in Alabama
Thimble earned the highest MoneyGeek score of 92 out of 100 out of the insurers we reviewed in Alabama for general liability insurance. The table below displays the MoneyGeek scores and costs of the companies we evaluated.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to rank the best general liability insurance in Alabama:
- Affordability for LLCs: 30%
- Affordability for sole proprietors: 30%
- Customer satisfaction: 20%
- Financial stability: 15%
- Online quote process: 5%
MoneyGeek used two business profiles to gather general liability quotes:
- An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs.
- A sole proprietorship with five years in business, no employees, $500,000 in annual revenue and no payroll costs.
| Thimble | 92 | $22 | $62 |
| The Hartford | 91 | $30 | $47 |
| Nationwide | 91 | $35 | $37 |
| Next | 89 | $25 | $26 |
| Hiscox | 84 | $29 | $180 |
Best OverallScore: 92
4/5LLC Affordability
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Online Quote Process
PROS
Fast online quote system
Most affordable option for sole proprietors
A+ rating from AM Best
CONS
Below-average ratings for customer satisfaction
Company Highlights
Our data shows that Thimble is overall the best general liability insurance provider in Alabama, boasting a good balance of affordability and financial stability. For sole proprietors, a policy costs approximately $22 per month, while LLCs will pay around $62 monthly.
Thimble earned the lowest satisfaction rating among all insurers in our review. The company makes up for this with excellent financial stability ratings from AM Best, with an A+ grade.
Cheapest General Liability Insurance in Alabama
Thimble is the most affordable provider of general liability insurance in Alabama. On average, LLCs pay $62 per month and sole proprietors pay $22 per month. To determine the cheapest option, we created an affordability score based on the monthly costs for LLCs and sole proprietors (both are weighted 50%). The winner, Thimble, may not offer the lowest rates for both business entity types, but it is the most cost-effective insurer overall.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the cheapest general liability insurance in Alabama:
- Affordability for LLCs: 50%
- Affordability for sole proprietors: 50%
CheapestScore: 97
4/5LLC Affordability
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Online Quote Process
PROS
Most affordable for sole proprietors.
Excellent financial stability ratings
Earned a high quote speed score
CONS
Less affordable for LLCs
Company Highlights
Budget-conscious business owners in Alabama should consider Thimble when searching for the most affordable general liability insurance. Thimble offers the lowest rate for sole proprietors at an average of only $22 per month and the fourth-lowest rate for LLCs, averaging $62 a month. The company earned an A+ (Superior) rating from AM Best, indicating its ability to meet its financial obligations. Plus, you can get an online quote more quickly than you can with most other insurers we researched.
Best General Liability Insurance for Employers in Alabama
With a score of 97 out of 100, Nationwide is the best insurer for employers in Alabama searching for general liability insurance. On average, policies from this company cost $37 per month. This average monthly cost is based on LLCs with 20 employees. Companies with fewer than 20 employees will probably have to pay less than the average cost, while those with more than 20 employees may pay more.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the best general liability insurance for employers in Alabama:
- Affordability for LLCs: 60%
- Customer satisfaction: 20%
- Financial stability: 15%
- Online quote process: 5%
Best for EmployersScore: 97
5/5LLC Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process
PROS
Excellent customer satisfaction score
High financial stability ratings
Good affordability score
CONS
Slow online quote system
Company Highlights
For those looking for the best general liability insurance in Alabama, Nationwide is the best option. It offers competitive rates, excellent service and earned high marks for financial stability. The average cost of coverage for an LLC with 20 employees is only $37 per month.
Nationwide combines quality service and affordability and consistently meets policyholders’ expectations. Its financial strength ensures that the company will be able to pay out claims, but you may find the time it takes to get a quote to be lacking.
Best General Liability Insurance for Sole Proprietors in Alabama
Sole proprietors looking for general liability insurance fare best with Thimble, which earned the highest score of 94 out of 100 in MoneyGeek's analysis of five insurers. Its average monthly policy cost is $22, applicable to one-person businesses with no employees. This rate may vary depending on the business's industry since those in high-risk fields like construction could see pricier rates than those in low-risk industries like software development.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the best general liability insurance for sole proprietors in Alabama:
- Affordability for sole proprietors: 60%
- Customer satisfaction: 20%
- Financial stability: 15%
- Online quote process: 5%
Best for Sole ProprietorsScore: 94
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Online Quote Process
PROS
Scored well for quote speed
Cheapest insurer for sole proprietors
Ranked well for financial stability
CONS
Low satisfaction score
Company Highlights
Thimble is the top-rated insurer for general liability insurance for one-person companies in Alabama. At $22 per month on average, it is the most affordable option in our research. It has the financial stability needed to cover any potential claims, earning an A+ rating from AM Best. Additionally, Thimble's online quote system is fast compared to other companies we researched, and it provides quotes in around one minute.
Do You Need General Liability Insurance in Alabama?
When it comes to business insurance, general liability insurance is not legally required to operate a company in Alabama. However, it is an important form of protection that business owners should consider purchasing. It provides coverage for legal costs and damages related to claims of property damage, bodily injury and personal injury caused by the business. It also provides coverage for libel, slander, copyright infringement and reputational harm. This type of coverage is especially important for businesses that interact with customers in any way since it can help protect against customer lawsuits.
Businesses in Alabama with at least five full-time or part-time employees must have workers' compensation insurance. This type of insurance provides coverage for medical expenses and lost wages for employees injured or ill while on the job.
Commercial auto insurance with the following limits is required for any business that owns and operates vehicles in Alabama:
- $25,000 bodily injury liability limit per person
- $50,000 maximum for all bodily injuries per accident
- $25,000 maximum for property damage per accident
This insurance covers any losses or damages that may be caused by the operation of company vehicles or any injuries that occur in an accident.
SMALL BUSINESS RESOURCES IN ALABAMA
AtlasAlabama.gov is a free online resource for entrepreneurs and small business owners in Alabama to access state and local resources, learn business basics and connect with the Alabama Small Business Commission (ASBC) to promote small business development. Alabama has a network of resource providers offering free technical assistance and special training programs for a fee.
How Much Is General Liability Insurance in Alabama?
In Alabama, LLCs with 20 employees pay an average of $70 per month for general liability insurance. Sole proprietors with no staff can expect to pay approximately $28 monthly. This policy comes with an aggregate limit of $2 million, an occurrence limit of $1 million and a $0 deductible.
The aggregate limit is the maximum amount of money an insurer will pay out in claims during the length of the policy, while the occurrence limit is the maximum amount that can be covered for each claim. The deductible is the amount the business owner must pay upfront before the insurance provider takes over.
Factors That Impact General Liability Insurance Costs in Alabama
General liability insurance costs can vary from business to business depending on key factors, such as:
Policy limits
General liability insurance has aggregate and occurrence limits. As the insured’s policy limits increase, so does the premium they pay. Conversely, if the insured chooses to lower their policy limits, it could result in decreased premiums. In either case, it is important to carefully consider the limits chosen as they will have an impact on the insured’s level of protection.
Number of employees and payroll costs
Employees and payroll costs play a major role in determining the cost of general liability insurance. Generally, the more employees and higher payroll costs a business has, the higher the cost of general liability insurance. This is because larger businesses are more likely to face more expensive liability claims than smaller businesses. Our data on general liability insurance shows that LLCs with 20 employees pay an average of $70 per month for coverage, while sole proprietors pay an average of $28 per month.
Business location
Businesses located in areas with higher crime rates or properties prone to natural disasters (such as floods, hurricanes or earthquakes) will typically pay more for general liability insurance than those located in low-risk areas. The averages we found statewide might vary based on the city you do business in.
Claims history
Insurers may charge higher premiums to businesses that have had previous claims. This is because the insurer sees the business as a higher risk to insure, meaning they could incur more costs if they were to insure the business.
Industry
Insurers take into account the industry a business operates in when assessing its risk and deciding premiums. Businesses in high-risk industries like construction or transportation may pay higher premiums than those in lower-risk industries like retail. We analyzed the average cost of general liability insurance based on industry to give you an idea of the differences in premiums.
| Cleaning | $85 | $1,699 |
| Software Development | $28 | $70 |
| General Contractor | $196 | $2,892 |
Frequently Asked Questions About General Liability Insurance in Alabama
The best general liability insurance for your business will depend on your individual needs and other factors. Here are some frequently asked questions and their answers.
Which company has the best general liability insurance in Alabama?
Thimble provides the best overall general liability insurance in Alabama due to its quick quotes and financial stability. However, the right option for you will depend on the size of your business, the number of employees you have and the coverage you require.
Which company has the cheapest general liability insurance in Alabama?
Thimble earned the highest score for affordability, making it the most affordable choice for sole proprietors in Alabama in terms of general liability insurance. For LLCs with 20 employees, Thimble ranked fourth in terms of affordability. The most suitable option for you depends on your business location and employee count.
What does general liability insurance cover in Alabama?
General liability insurance in Alabama provides protection in the event of a claim or lawsuit resulting from bodily injury, property damage, libel, slander and other related liabilities.
Does Alabama require businesses to have general liability insurance?
Alabama does not require businesses to have general liability insurance. However, some cities may have their own requirements for certain types of businesses.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
sources
- Alabama Department of Labor. "Insurance Requirement Information." Accessed October 29, 2024.
- Made in Alabama. "Business Development Division." Accessed October 29, 2024.