No items found.
Don't see your business classification?
We're here to help. Call 866-338-8823.
We're here to help. Call 866-338-8823.
Alabama businesses must carry workers’ compensation insurance if they employ five or more people. Unlike some other states, this requirement extends to corporate officers, LLC members, and part-time employees. Some independent contractors in high-risk industries must also carry workers’ comp insurance, such as construction contractors.
Looking to purchase workers’ comp insurance but worried about how much a policy will cost? You can use several tactics to limit how much you’ll pay for a policy, including the following:
Not sure how the workers’ comp process works in Alabama? It’s pretty straightforward.
First, you’ll need to get quotes from insurance companies based on your annual payroll. Once you choose an company, you’ll pay your premium. That gives your business coverage for a year.
Once the term is over, you’ll go through an audit to determine if you overpaid, in which case you’ll be refunded the difference, or underpaid, in which case you’ll receive a bill.
Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.
Like most states, Alabama offers three paths to obtaining the workers’ compensation insurance you need to protect your business and employees.
If your business is required to carry workers’ comp insurance but you fail to purchase a policy, the state can enact a range of penalties.
All workers’ comp policies in Alabama are required to provide death benefits if an employee dies in a workplace accident or due to a work-related illness. Those benefits are payable to the employee’s spouse and qualifying dependents.
Death benefits can receive weekly payments of up to 75% of the employee’s average weekly earnings. Payments can be made for up to 500 weeks.
Eligible dependents/spouses may choose to receive a lump sum payment instead of weekly payments.
In some cases, an employee may choose to settle their worker’s comp claim rather than pursue it in court. Usually, this involves accepting a lump sum payment. The employee, employer, and insurance company must agree to the terms of the settlement. However, a settlement does not necessarily mean that the employee waives their rights regarding the claim. The state allows the case to be reopened if the employee experiences further health challenges within four years of the settlement.
Employees have two years to file a workers’ compensation claim from the time of injury or the last disability payment.
Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!
Unlike other online insta-quote systems,
here your quote is reviewed by experts
A Step-by-Step Handbook for Small Businesses - you don't want to skip this!
By entering your email, you agree to our Privacy Policy.
Arkansas
Connecticut
Florida
Georgia
Missouri
North Carolina
Oklahoma
Pennsylvania
Rhode Island
Tennessee
Texas
Virginia
See all
© 2024. All Rights Reserved | Sitemap | Terms & Conditions | Privacy Policy
5148 US-9, Howell, NJ 07731
The information on this website is not intended to serve as insurance advice. All content provided is for general informational purposes only.
For advice tailored to your business insurance requirements, fill out our online application and speak with one of our licensed insurance professionals.
