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Arizona Business Insurance

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Business insurance in Arizona

Arizona is one of the nation’s fastest-growing states1 and many new residents launch small businesses. In fact, small companies employ 1 million people in Arizona, accounting for 44% of the state’s labor force.2

No matter your company’s industry, business insurance in Arizona is essential. Small business coverage helps protect against events like:

  • Injuries
  • Property damage
  • Accusations of professional mistakes
  • Business-related auto accidents

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Arizona or start a free instant quote to review options for your business.

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How Next can help you with business insurance in Arizona

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

Start an instant quote today.

We’ve got tailored policies for thousands of professions

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Business insurance coverage and requirements in Arizona

Factors that inform what kind of coverage (and how much) your business needs include:

  • Frequently encountered work-related risks
  • Your company’s industry
  • How many employees you have

Small business insurance packages in Arizona usually include some combination of:

How much damage business insurance in Arizona covers depends on your policy limits and deductible.


General Liability insurance

Accusations of injury or property damage can seriously impact a small business’s bottom line. 

This is why we recommend that most small business insurance plans in Arizona include general liability coverage. This type of insurance helps pay for damages if someone accuses your company of 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 carpet. General liability insurance helps the business pay to replace the carpet so it doesn’t have to cover the repairs entirely out of pocket.

If you own a construction or cleaning company, a general liability upgrade coverage called tools and equipment insurance will help pay for business items that are stolen, damaged or lost.


Workers’ Compensation insurance

Arizona requires all businesses with employees to carry workers’ compensation insurance.3

This form of coverage helps workers who are hurt on the job pay for medical expenses. It also covers a portion of lost wages if they need time to recover from an injury.

Here’s an example of how workers’ comp insurance might help a small business in Arizona:

An employee of a Tucson-based tree trimming company is injured by a falling limb and needs medical attention, along with several weeks of physical therapy. Workers’ comp insurance covers part of the worker’s medical and rehab bills. 


Professional Liability (E&O) insurance 

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, which is also known as errors and omissions (E&O) coverage, would 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 helps the caterers pay for attorney fees, court costs and any damages for which it is found liable.


Commercial Auto insurance

Arizona law requires all drivers to carry a minimum of $50,000 in auto insurance to pay for injuries to other people and vehicle damages.4

Personal car insurance probably won’t pay for damages that happen if an employee has an accident in a vehicle titled to your company, which is why small business owners in Arizona should strongly consider commercial auto coverage.

Commercial auto insurance would help in the following situation:

An architect in Scottsdale has a collision in a company-owned car during a dust storm. Commercial auto insurance will help cover damages to vehicles involved in the accident, as well some medical expenses.

Hired and non-owned auto insurance is a common commercial auto coverage upgrade. This protects against accident damages if employees sometimes drive their own vehicles or rent cars for business purposes.

How much does business insurance in Arizona cost?

Small business insurance in Arizona costs a median of about $40 each month. How much you’ll actually pay depends on:

Risk factors your business routinely encounters. Arizona-based construction companies can expect to spend more than $150 for coverage due to regular injury hazards. Small entertainment businesses in the state pay a median of $25 per month for coverage.

The types of insurance you buy and your policy limits. Saving a few extra dollars each month for less coverage or choosing lower policy limits means that you won’t spend as much for coverage each month. But if you do file a claim because of unexpected events, you’ll pay more out of pocket.

How many people you employ. Insurance companies calculate workers’ comp costs based on employee numbers. Before you request a quote, make sure that you have an accurate worker headcount.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.


More resources for Arizona small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in Arizona:

 Article sources: 

  1. The University of Arizona
  2. U.S. Small Business Administration 
  3. Industrial Commission of Arizona
  4. Arizona Department of Transportation