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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.

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Best General Liability Insurance in Alabama

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 Score
Monthly Cost Without Employees
Monthly Cost With 20 Employees





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Best OverallScore: 92
4/5LLC Affordability
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Online Quote Process

Fast online quote system

Most affordable option for sole proprietors

A+ rating from AM Best


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?

CheapestScore: 97
4/5LLC Affordability
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Online Quote Process

Most affordable for sole proprietors.

Excellent financial stability ratings

Earned a high quote speed score


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?

Best for EmployersScore: 97
5/5LLC Affordability
5/5Customer Satisfaction
4/5Financial Stability
3/5Online Quote Process

Excellent customer satisfaction score

High financial stability ratings

Good affordability score


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?

Best for Sole ProprietorsScore: 94
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Online Quote Process

Scored well for quote speed

Cheapest insurer for sole proprietors

Ranked well for financial stability


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.

smallBusiness icon
SMALL BUSINESS RESOURCES IN ALABAMA 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:

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    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.

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    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 icon

    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.

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    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.

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    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.

Monthly Cost Without Employees
Monthly Cost With 20 Employees




Software Development



General Contractor



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.

About Melissa Wylie

Melissa Wylie headshot

Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.