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Do Alabama Business Owners Need to Purchase Commercial Auto Insurance?

If you run a business in Tuscaloosa or Birmingham, AL, you’ll likely need to purchase a commercial auto insurance policy. Even freelancers who use a vehicle for both business and personal reasons may need a commercial policy.

Alabama Commercial Auto Insurance Requirements

Alabama business owners will need a commercial auto policy with a minimum liability limit of $25,000 per person, $25,000 for property damage, and $50,000 per accident for bodily injury. However, the coverage requirements may vary if your business has a semi-truck or another large vehicle. For instance, large commercial vehicles traveling on the interstate need a minimum combined single limit of $750,000.

What About a Personal Auto Insurance Policy?

A regular auto insurance policy will not provide compensation if an accident occurs when a vehicle is used for commercial purposes. If, for instance, you drive part-time for Uber or Lyft and you rear-end another vehicle, you won’t qualify for coverage because you weren’t using your car for personal reasons. This same point applies if you use a vehicle to meet customers, close sales, or transport your wares to and from markets. 

Get Professional Help from Birmingham Insurance Agency LLC When Choosing Commercial Auto Insurance

At Birmingham Insurance Agency LLC, we understand that each client has specific needs and requirements. We work with you to ensure the coverage you pick meets Alabama state laws and your exact needs. If you’re unsure about what type of coverage your car needs, want to choose a basic policy, or explore multiple options to provide your vehicle with full coverage, contact us at your convenience. Our Birmingham, AL office can offer quotes and the expert advice you need to choose the best policy for your situation.

Insurance Coverage for Commercial Inventory Essentials

Your commercial insurance policy should adequately protect the inventory essentials you store at your place of business. Review the inventory materials you have available. Then, consider the insurance requirements for these items.


Inspect the pallets and racking systems that you use to store goods. Make sure that the pallets and racks are in operable order. Ensuring that none of the items are damaged will reduce injuries.

Assess the location where you store goods. The inventory should be stored in a secure area that will not be accessible to those who do not work at your place of business.

If you currently store anything in an area that could easily be broken into, change the layout of your inventory.

Mechanical Equipment

Examine the mechanical equipment that is used to produce inventory or transport inventory. The mechanical equipment could break down, requiring replacement materials.

Expensive equipment could also be stolen or vandalized. Consider covering all the equipment you rely upon to conduct daily business operations.

Keep careful records of the mechanical equipment at your place of business. This list should include all the items you will add to your commercial insurance policy.


Assess the vehicles that are used to transport inventory essentials. The vehicles should be properly insured while you are actively using them. The vehicle list added to your insurance policy should be updated as needed.

Contact Birmingham Insurance Agency LLC

Contact one of our agents who serves Birmingham, AL. An agent who represents Birmingham Insurance Agency LLC will prepare your updated commercial insurance policy for you.

How to Protect Your Business and Its Unique Needs

No two businesses are the same. And that is no different for businesses throughout the great state of Alabama. That is why our proven and professional team at the Birmingham Insurance Agency LLC is a trusted source of insurance solutions for companies across the Birmingham, AL area. 

At the Birmingham Insurance Agency LLC, business owners get the benefit of working with experienced and licensed agents who can help them find the right commercial insurance plan.

Commercial Insurance to Fit Your Business

Business owners have many responsibilities. First and foremost among them is protecting the companies they have built. It doesn’t matter if your business is in a high-risk industry or if you operate a small company that falls into a low-risk category; insurance isn’t optional. To protect your company, your clients and customers, and your employees from any number of risks and liabilities, commercial insurance is the solution. 

To find the right commercial insurance for your business, you also need a reputable, experienced, and knowledgeable agent for your commercial insurance needs. 

At the Birmingham Insurance Agency LLC, we provide a range of commercial insurance options to cover every type of business.

Consult With Us

Birmingham, AL is a great place to own a business, and the Birmingham Insurance Agency LLC offers insurance plans to protect those businesses and business owners. Contact us to learn more or to cover your business today. We look forward to helping you with all your commercial insurance needs and helping you find the right solutions for your business.

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