Commercial Property Insurance in Arizona

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Commercial property helps cover physical assets

Business goods and gear

Business goods and gear

You turn your back and someone does the 100-yard dash with your business laptop. You’ll need a replacement.


A tree unexpectedly falls on your shop’s roof.
Equipment breakdowns

Equipment breakdowns

Your HVAC unit stops working the day after the warranty expires.
Business income interruptions

Business income interruptions

A fire damages an exterior wall at your business and you have to close for three weeks during repairs.

What does Commercial Property cover in Arizona?

Commercial property insurance in Arizona can help provide coverage for the physical assets you need to operate your business.

With this coverage, Arizona business owners may be able to submit a claim to get help with replacement, repair or reimbursement costs when certain types of accidents or emergencies occur.

Some examples of how commercial property insurance can help include:

  • Structure fire: Commercial property insurance can help cover the cost of repairs and replacements if a fire breaks out at your business. This can include Arizona wildfire insurance coverage.
  • Water damage: If your business has water damage from a burst pipe or leak, commercial property insurance can help pay to make necessary repairs. Note: This does not include flood coverage (see below for more details).
  • Theft or vandalism: Commercial property insurance can cover property inside or within 100 feet of your business if it’s stolen or vandalized.

Covered events for this insurance generally include water, fire and wind damage and man-made events like theft and vandalism.

Be sure to read your policy documents carefully. Coverage can vary between different industries, so it’s important to know exactly what is covered and excluded for your business.

Commercial property insurance can protect different types of property

When a covered event occurs, commercial property insurance can help protect the following assets:

  • Structural damage
  • Inventory
  • Furniture
  • Equipment
  • Fixtures
  • Flooring
  • Broken windows
  • Business income

Types of Commercial Property insurance coverage

Arizona commercial property insurance policies from NEXT can include four types of coverage:

Goods, gear and inventory

Commercial property insurance can help pay for related costs if your furniture, equipment or inventory is affected by a covered event. This coverage is also referred to as business personal property insurance or BPP insurance.

Example: If you own an electronics store in Mesa and a burst water pipe damages some of your inventory, commercial property insurance can help pay for replacement or repair costs.

Business income interruption

Your insurance can help cover lost income and other related expenses during a temporary closure due to fire, water damage or another covered event. This is also known as business interruption insurance or business income insurance.

Example: If your carpentry business in Tucson has to close for several weeks after an electrical fire in your workshop, commercial property insurance can help make up for the income lost during that time.

Equipment breakdowns

Arizona commercial property insurance can help with replacement or repair costs if your equipment is damaged due to a mechanical failure or power surge.

Example: If the HVAC system in a Scottsdale restaurant stops working due to a mechanical problem, commercial property insurance could help pay to fix it.


Your commercial property insurance can help pay for repairs to a building that you own and use for business purposes. If you’re leasing or renting a commercial space, you typically don’t need this coverage.

Example: If a tree topples over during a severe storm and falls on the roof of a Phoenix florist, commercial property insurance could help pay for the costs to repair the damage.

Does Commercial Property insurance help pay for damage from natural disasters in Arizona?

NEXT commercial property insurance policies cover damage to business property caused by fire, wind and hail. This includes damage resulting from certain weather events, such as:

  • Wildfires
  • Tornados
  • Windstorms

Some man-made disasters, including vandalism and rioting, are covered as well. Although terrorism is not covered, it’s available as an optional add-on to your policy.

NEXT commercial property coverage does not extend to volcanoes or floods. Because the hard desert ground does not soak up water well, many areas of Arizona have a heightened risk of flooding. If you’d like to purchase flood insurance for your business property, it’s available as a separate policy through the National Flood Insurance Program (NFIP).1

Is Commercial Property insurance required in Arizona?

Arizona businesses are not required by law to have commercial property insurance.

However, this type of coverage may be needed for certain business activities, like renting or purchasing commercial space.

Although Arizona business owners aren’t forced to carry commercial property insurance, many choose this coverage to help protect important physical assets. Commercial property coverage can benefit your business in a number of ways, including:

Cover property damage costs

This type of Arizona business insurance can help pay for things like replacing or repairing damaged property if a covered incident occurs.

Survive business interruptions

With business income insurance, you may be able to get help with lost income, moving and relocation costs and employee wages if you have to close temporarily after a covered event.

Secure a loan

Some banks and lenders require you to have this insurance before they will approve you for a mortgage on a commercial property. Arizona business owners need to have business hazard insurance on buildings used as collateral to get loans from the Small Business Administration (SBA).

Lease agreement

Arizona property managers may have a requirement for commercial property coverage written into their commercial leases.

What types of businesses might need Commercial Property insurance in Arizona?

Any business with physical assets, including buildings, equipment, inventory or furniture, can benefit from the protections provided by commercial property insurance. Companies in Arizona across a variety of industries use this business insurance to minimize financial risks.

Commercial property insurance can help protect businesses that operate out of brick-and-mortar stores or office spaces. Home-based businesses often have limited coverage through their homeowner’s insurance policy, but commercial property insurance can offer more complete coverage for inventory and business equipment.

Inventory coverage is also an important consideration for brick-and-mortar retail businesses. If products are damaged or stolen, it could lead to significant losses. Commercial property coverage can help reduce financial risk when a large amount of inventory is kept on site.

How much is Commercial Property insurance in Arizona?

Arizona commercial property insurance costs are calculated according to a number of different factors. Although the total value of your bsiness property is the primary consideration, these variables are also taken into account:

  • Where your business is located
  • The type of work you do
  • How many employees you have
  • How high you set your limits
  • Your past insurance claims
  • Your work experience

At NEXT, we offer affordable insurance coverage for small businesses. Commercial property insurance costs $45 or less per month for 56% of our U.S. customers.**

Learn more about commercial property insurance costs.

How NEXT Insurance helps Arizona businesses

NEXT provides Arizona commercial property insurance policies designed for small businesses and self-employed workers.

It only takes about 10 minutes to get a quote, review your coverage options, choose your policies and download a certificate of insurance.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by to assist you if you have any questions along the way.

Other types of Arizona business insurance

Commercial property insurance can help protect your business’s physical assets. However, additional types of coverage could help with other risks you may face every day as a business owner.
The following types of coverage can help to protect your business:
General Liability
General Liability insurance

General liability coverage can help cover certain expenses if your business is involved in a third-party accident that causes property damage or injury.

Workers Compensation
Workers’ Compensation insurance

If an employee gets hurt while on the job, Arizona workers’ compensation insurance can help pay for their medical expenses and lost wages. According to state law, all employers in Arizona must have workers’ comp coverage.2

Commercial Auto
Commercial Auto insurance

If one of your work vehicles is involved in an accident, commercial auto insurance can help cover costs like towing, repairs and medical bills.

In Arizona, all business-owned vehicles must be covered by commercial auto insurance, with minimum coverage of $25,000 per person, $50,000 per accident and $15,000 for property damage.3

Errors & Omissions
Professional Liability insurance (E&O insurance)

Professional liability insurance can help protect your business financially if a client claims that you made a professional mistake which cost them money. This coverage is commonly bundled with general liability insurance for more comprehensive protection.

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Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
** The cost data presented here are based on NEXT active customers in the U.S. who purchased commercial property insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in July 2022.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.