Small businesses are an important part of Arizona’s economy. They employ 1.1 million people in the state, accounting for nearly 43% of Arizona’s labor force.1
The owners of these establishments need Arizona business insurance to protect their businesses, livelihoods and their employees.
Having the right business coverage can help keep your Arizona company running when things don’t go as planned. It can help provide a financial safety net after business-related events including:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.
Continue reading to learn about important types of business insurance in Arizona. Or get a free instant quote to see customized coverage options for your business.
No two small businesses are the same, so business insurance coverage is typically sold in customized packages. Insurance carriers may recommend several different types of coverage, sometimes called insurance products or policies.
Your business insurance needs will be determined by factors that include your:
A business insurance package in Arizona may include some combination of:
One of the most frequently purchased types of business insurance is general liability coverage, sometimes called commercial general liability or business liability insurance. It can help pay for damages if someone accuses your business of causing an injury or property damage.
For instance, an employee at a painting company in Phoenix accidentally knocks over a can of paint and ruins a client’s carpeting. General liability insurance could help the painters cover the expense of replacing the carpeting.
If you own a construction or cleaning company, you may want an optional coverage upgrade called tools and equipment insurance. It can help pay for business gear that’s lost, stolen or damaged outside of normal wear and tear.
Arizona requires most businesses with employees to carry workers’ compensation insurance. This form of coverage is designed to help cover costs when employees are hurt on the job. It can help pay for medical bills and lost wages while the employee recovers.
Here’s an example of how workers’ comp insurance could help a small business in Arizona:
An employee of a Tucson-based auto body repair shop gets a serious cut on his hand and needs medical attention, along with several weeks of physical therapy. Workers’ comp insurance could help cover the worker’s medical and rehab bills, as well as help provide lost wages while they’re unable to work.
If you or your employees drive for business, you’ll need commercial auto coverage. That’s because personal car insurance won’t pay for accidents that happen while driving for business.
Commercial auto insurance could help in the following situation:
An architect in Scottsdale has a collision in a company-owned car during a dust storm. Commercial auto insurance could help cover damages to the vehicles involved in the accident and pay for medical expenses if anyone is injured.
Hired and non-owned auto insurance is a common commercial auto coverage add-on. This optional upgrade is designed to provide coverage if employees drive their own vehicles or rent cars for business purposes.
Arizona commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.
For example, a sprinkler malfunction at a Mesa construction company damages the office, ruining a computer and printer. Commercial property coverage could help pay to clean up the mess and replace the damaged business equipment.
If a client claims that your business made a work mistake or failed to deliver what you promised, you could face an expensive lawsuit, even if your company is not at fault.
In such cases, professional liability insurance, also known as E&O or errors and omissions coverage, could help a small business defend itself.
For example, a client says that a catering company in Flagstaff failed to fulfill a contract. If the client pursues legal action, E&O insurance could help the caterers pay for attorney fees, court costs and any damages for which they’re found liable.
Business insurance costs in Arizona can vary widely. That’s because every small business has different requirements for their coverage. How much your company will pay depends on:
The amount of risk your business faces each day will impact your insurance costs. For example, Arizona-based restaurants, which are more likely to experience an injury or property damage, may pay more than professional services businesses, where customers are less likely to get hurt.
Business insurance will cost more as you add policies to your coverage package. Most businesses need more than one type of policy to protect them in different situations.
Insurance companies calculate workers’ comp costs based on employee numbers. The higher your headcount, the more you’ll pay.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Arizona:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
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