Nationwide emerged as the top contender for Alabama’s best general liability insurance in MoneyGeek’s analysis with a score of 96 out of 100. However, The Hartford, Thimble, NEXT, and Hiscox are also great options for general liability policies. For more information, check out the best general liability insurance.
Best General Liability Insurance in Alabama
Nationwide, NEXT and The Hartford are the best and cheapest general liability insurance providers in Alabama, with rates starting at $27 per month.
Start comparing affordable providers in Alabama below.

Updated: June 17, 2025
Advertising & Editorial Disclosure
Key Takeaways
Overall, the best general liability insurance company in Alabama is Nationwide, which has a great balance of affordable rates for LLCs and good customer service.
The cheapest general liability insurance for sole proprietors in Alabama is offered by NEXT at $27 per month. For LLCs, NEXT is the most affordable option at $28 a month.
General liability insurance costs in Alabama depend on your industry, and we found they can range from $30 to $3,124 per month on average.
Best Cheap General Liability Insurance in Alabama
Nationwide | 96 | $37 | $39 |
The Hartford | 96 | $33 | $50 |
Thimble | 90 | $33 | $76 |
NEXT | 90 | $27 | $28 |
Hiscox | 83 | $32 | $195 |
*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.

Nationwide: Best Overall
pros
Low rates for LLC businesses
Large coverage selection
Low customer claims frequency
cons
Higher rates for sole proprietors
COMPANY HIGHLIGHTS
Nationwide earned our spot for the best overall general liability insurance in Alabama due to its balance of competitive prices and great customer service for most businesses. Along with offering the second-lowest rates in the state for LLCs, the company tied for first for the lowest claims ratio from the NAIC.

NEXT: Cheapest Overall
pros
Easy fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
NEXT is our pick for the cheapest overall general liability insurance in the Heart of Dixie. The company has the cheapest rates for sole proprietors at $27 monthly and the lowest rates for LLCs at $28 monthly. While its claims ratio was higher than other companies we've reviewed in the state, their overall buying process was smooth, and you can even get proof of insurance within the same day.
How Much Is General Liability Insurance in Alabama?
An average general liability insurance policy in Alabama typically costs around $30 per month for sole proprietors and $76 per month for LLCs. However, this only represents software development companies and the costs can vary widely by industry.
Cleaning | $1,835 | $92 |
General Contractor | $3,124 | $212 |
Software Development | $76 | $30 |
*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in Alabama
General liability insurance costs can fluctuate based on a number of different factors in Alabama. In the list below, you can see these factors and their impacts on your coverage costs:
Policy limits
Coverage limits can greatly influence insurance premiums. Opting for higher limits will raise costs, whereas choosing lower limits generally leads to more affordable premiums.
Number of employees and payroll costs
Businesses with a large workforce and high payroll expenses often see an increase in general liability insurance costs. This trend is evident in both LLCs and sole proprietorships.
Business location
Where your business operates can significantly affect insurance expenses. Keep in mind that state-level average rates can differ from city to city, so it's important to consider these variations when assessing your coverage needs.
Claims history
A record of multiple claims can make a business seem riskier to insurers, leading to higher premiums.
Industry
Industries with higher risk levels, such as construction, typically encounter elevated general liability insurance costs.
Alabama General Liability Insurance: Buyer's Guide
Business insurance is a complicated industry and can be difficult to navigate. So, to simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing requirements in Alabama, and explaining how much coverage you should consider getting.
How to Find the Best General Liability Insurance Company
To help ensure that you get the best small business insurance regardless of your industry, we've created a step-by-step guide to simplify your coverage search.
- 1
Define your coverage needs
Determine your liability risk by considering your industry, products or services, customer types, business size and market impact. Measure the frequency and costs of common claims in your industry to evaluate coverage options better.
- 2
Research average costs for your nusiness
To understand how good of a deal you're getting from business insurance companies, you need to research average costs for your particular business. Knowing average expenses will give you a measuring stick to judge whether a company is saving you money or not.
- 3
Consult similar businesses
Your business community is your greatest resource, and personal experience is often more valuable than resources online. You'll likely be able to get recommendations that are better for your specific needs. They may also provide ways to mitigate risks associated with general liability insurance.
- 4
Compare multiple options through different means
Comparing multiple companies allows you to find the best option for your business. Also, choosing multiple means of comparison, like online comparison sites and brokers, will give you a comprehensive view of pricing.
What Does General Liability Insurance Cover and How Does It Work?
General liability insurance coverage consists of two parts: per occurrence and aggregate limits. Per occurrence is the maximum a single claim can go up to, while the aggregate limit is the total coverage you can get per year. In terms of covered items, this type of policy includes the following:
Bodily injuries or property damage on business property
Legal fees for bodily injury or property damage that your company may be responsible for
Damages to leased or rented business property
Bodily injury or property damage caused by your product or service
Libel, slander, or reputational harm legal defense
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in Alabama?
Like in most states, state law doesn't require general liability insurance. Suppose you want to apply for a professional license, sign a contract with a larger company, or sign an office lease. In that case, some form of general liability insurance may be required. While not an exhaustive list, the following industries tend to fall into these categories:
- Medical
- Accounting
- Real estate
- Insurance
- Contracting
- Engineering
- Marketing
- Law
- Consulting
- Media/Communications
How Much General Liability Insurance Do I Need?
Most small businesses will only need a standard policy with 1 million dollars of protection per occurrence and a 2 million limit per year. This will likely cover most or all damages caused over a year for most business types. Even so, your particular industry's risks and the size of your operation may require a larger coverage limit than standard.
WHO MAY NEED MORE COVERAGE
Certain businesses, like those in health care, building, or selling things, face more risks. If your company is one of these, or if it's growing and reaching more people, you may need more insurance than the basic amount. Our guide can help you learn about the best options out there.
Best General Liability Insurance in Alabama: Bottom Line
Overall, the best general liability insurance companies in Alabama are Nationwide, The Hartford, and Thimble. NEXT and Hiscox also offer competitive options. Compare around yourself and get plenty of quotes to ensure you get the best deal possible.
General Liability Insurance in Alabama: FAQ
Below, we address frequently asked questions about general liability insurance in Alabama:
Which company has the best general liability insurance in Alabama?
MoneyGeek's top choice for general liability insurance in Alabama is Nationwide, which earned a score of 96 out of 100. The best insurance for your business depends on your company size, number of employees and specific coverage needs.
Which company has the cheapest general liability insurance in Alabama?
NEXT offers the cheapest general liability insurance in Alabama for both sole proprietors ($324 annually) and LLCs ($336 annually). Nationwide provides competitive rates for sole proprietors at $444 per year.
Does Alabama require businesses to have general liability insurance?
Alabama doesn't require general liability insurance by state law, but many industries, contracts and leases require coverage. You may need it to obtain professional licenses, sign contracts with larger companies or lease office space.
How We Chose the Best General Liability Insurance Providers in Alabama
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and A.M. Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.