Is Commercial Insurance Required By Law?

If you own a business in Cullman, AL, it’s imperative that you protect yourself against flood, theft, and damage to your property, as well as ensure you are covered against liability in the event that anyone from an employee to a customer or client suffers an injury while on your property.  But, whether you are a mom-and-pop startup or a big company, what are the legal requirements for commercial insurance coverage in Alabama? 

Commercial General Liability 

Alabama requires general liability insurance for most business owners. General liability is designed to protect you as a business owner from claims due to direct or indirect damage to another party. Your policy helps pay for damages caused by your employees, visitors, or your business, as well as subcontractors. While the insurance is required, you do have a choice when it comes to deductibles and policy limits, so contact Cullman, AL, Insurance Solutions Inc. To find a policy that meets your specific needs depending on your specific industry or type of business. Insufficient liability coverage could put your business in jeopardy in the event of a claim.  

Commercial Vehicle Insurance 

The FMCSA and Alabama have specific insurance requirements for semi-trucks. Some coverage is mandatory, such as primary liability, while others are not, but bobtail and physical truck damage insurance coverage is just a smart business move. While Alabama has strict requirements of all drivers, like no-fault car insurance and uninsured motorist coverage, that doesn’t ensure your company will be protected in the event of a collision or accident. Without commercial vehicle coverage, you could be putting your company at risk. Who needs commercial vehicle insurance? If you or your employees are operating a car or truck for any business purpose, you need commercial vehicle insurance. Here are examples of some vehicle operations that need commercial coverage: Pickup or delivery of newspapers, messages, limousine services, taxi services, pizza or other foods, and products. 

Additionally, if your vehicle is used in the following ways, you may need commercial insurance: 

  • Registered to a business, partnership or corporation, or leased or rented by others 
  • Equipped with bathrooms, hydraulic lifts, snowplowing equipment, racing equipment, cooking or catering equipment.  
  • Used consistently by either you or your employees for both business and personal use.