Question 1

What does commercial property insurance cover in Alabama?

Accepted Answer

Commercial property insurance covers your business building, equipment, inventory, furniture, and fixtures against fire, theft, vandalism, wind, and hail damage. In Alabama, this is critical because our severe weather — tornadoes, hail storms, and hurricanes along the coast — can cause devastating property damage. Standard policies do NOT cover flood damage, which requires a separate policy.

Question 2

How much does commercial property insurance cost in Alabama?

Accepted Answer

Commercial property insurance in Alabama typically costs $500 to $3,000+ per year depending on building value, construction type, location, and industry. A small office in Birmingham might pay $800/year while a retail store with significant inventory could pay $2,500+. Coastal businesses near Mobile pay more due to hurricane risk. We shop 50+ carriers to find the most competitive rate.

Question 3

Does commercial property insurance cover tornado damage in Alabama?

Accepted Answer

Yes, standard commercial property insurance covers wind damage from tornadoes. However, many policies have a separate wind/hail deductible that can be 1-5% of your building's insured value. On a $500,000 building, a 2% wind deductible means you pay the first $10,000 out of pocket. Make sure you understand your wind deductible before tornado season.

Question 4

What is business interruption insurance and do I need it?

Accepted Answer

Business interruption insurance (also called business income coverage) pays your lost revenue and ongoing expenses if your business must close temporarily due to a covered property loss. If a tornado destroys your storefront, this coverage pays your rent, employee salaries, and lost profits while you rebuild. Most Alabama business owners underestimate how long rebuilding takes — often 6-12 months.

Question 5

Is my business equipment covered if it's stolen from a job site?

Accepted Answer

Standard commercial property insurance typically only covers equipment at your listed business location. Equipment at job sites, in transit, or stored off-premises usually requires an inland marine or contractor's equipment policy. This is a common coverage gap for Alabama contractors and service businesses.

Protect Your Business Property

What does commercial property insurance cover?

What's Covered

Alabama-Specific Risks

Tornadoes

Severe Storms

Flooding

Hurricane Damage

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