Business Insurance Cost by Industry
- • General liability
- • Property coverage
- • Business interruption
- • Workers comp (if employees)
- • General liability (high risk)
- • Liquor liability (if applicable)
- • Property & equipment
- • Workers comp (required)
- • Professional liability (E&O)
- • General liability
- • Cyber liability
- • Business property
- • General liability (high limits)
- • Tools & equipment
- • Commercial auto
- • Workers comp (required)
- • General liability
- • Professional liability
- • Cyber liability
- • Minimal property needs
- • General liability (high risk)
- • Product liability
- • Property & equipment
- • Workers comp (high rates)
What Drives Your Business Insurance Cost?
Higher revenue means higher exposure to liability claims. Most carriers use revenue as a primary rating factor for general liability coverage.
Workers compensation is mandatory in Alabama if you have 5+ employees (or any employees in construction). Rates vary dramatically by industry classification.
Alabama Requirement: Workers comp is mandatory if you have 5+ employees (any number for construction). Penalties for non-compliance: $100-$1,000 per day + criminal charges.
Your industry's claims history and risk profile is the single largest factor. High-risk industries pay 5-10x more than low-risk industries for the same coverage limits.
- • Accounting, consulting, IT services
- • Retail (non-food)
- • Office-based businesses
- • Professional services
- • Retail (food service)
- • Light manufacturing
- • Landscaping, cleaning services
- • Automotive repair
- • Roofing, construction trades
- • Bars, nightclubs
- • Heavy manufacturing
- • Transportation, trucking
Higher limits and lower deductibles increase your premium. Most businesses need at least $1M general liability, but many contracts require $2M or more.
Real Alabama Business Insurance Examples
Business Details:
- • $400K annual revenue
- • 3 employees (office-based)
- • No physical products
- • Home office + client sites
- • No claims history
Coverage & Cost:
- • $1M general liability: $650/yr
- • $1M professional liability: $800/yr
- • $500K cyber liability: $400/yr
- • Business property: $200/yr
- Total: $2,050/year
Business Details:
- • $800K annual revenue
- • 15 employees (kitchen + servers)
- • Full bar/liquor license
- • $200K equipment value
- • 1 slip-and-fall claim 2 years ago
Coverage & Cost:
- • $2M general liability: $2,800/yr
- • $1M liquor liability: $1,200/yr
- • Property & equipment: $1,500/yr
- • Workers comp: $2,400/yr
- Total: $7,900/year
Why higher cost? Food service + liquor = high liability risk. Prior claim (+15%). Workers comp for restaurant staff is $1.50-$2.00 per $100 payroll.
Business Details:
- • $1.2M annual revenue
- • 8 employees (technicians)
- • 4 commercial vehicles
- • $150K tools & equipment
- • Clean claims history
Coverage & Cost:
- • $2M general liability: $2,400/yr
- • Tools & equipment: $800/yr
- • Commercial auto (4 trucks): $4,800/yr
- • Workers comp: $3,200/yr
- Total: $11,200/year
Cost breakdown: Commercial auto is the largest expense ($1,200/truck/yr). Workers comp for HVAC is moderate risk at $4.00-$5.00 per $100 payroll.