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Our Guide to Arizona Business Insurance

Workers' Comp, Auto, General Liability Insurance & More

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Business Insurance in Arizona

If you run a business, large or small, it's important you have business insurance to protect yourself against unforeseen adverse events. Many types of business insurance are available, and while not all types are legally required, it may still be a good idea to consider purchasing certain types of coverage, depending on the size of the company and the liabilities it's exposed to. In this guide, we explore the types of coverage a business owner in Arizona might be required to have, some of the optional coverage available, what it's for, and what sort of business might wish to consider it.

What Insurance Is Required in Arizona?

Individual states can set their own requirements for what sort of insurance a business is required to have. State laws in Arizona require businesses to have the following types of insurance:

Workers' Compensation Insurance

Any business with one or more employees is required to have workers' compensation insurance. This covers the cost of medical expenses and missed wages for employees who sustain a work-related injury.

Commercial Auto Insurance

Any business-owned vehicles in Arizona must be covered by commercial auto insurance. This must cover at least $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $150,000 in property damage per accident. Higher levels of coverage are preferable. If you have a large fleet of vehicles, you may wish to opt for additional coverage in case any are lost, stolen, or vandalized.

Types of Arizona Business Insurance Offered

While the above are the legally required forms of coverage, many other policies are available that aren't required by the State of Arizona but can still be beneficial for business owners. Some optional forms of business insurance coverage include:

Arizona General Liability Insurance

Commercial general liability insurance offers coverage against claims of bodily injury, libel, slander, and property damage. This is a useful form of insurance for most businesses, as any dealings with the public could open a business owner up to claims, such as:

  • Personal and advertising injury: If your business is accused of copyright infringement, libel, or slander as a result of a marketing campaign or other business communications, this type of insurance may be of use.
  • Property damage: If someone's property is damaged while they're on or around the commercial premises, general liability insurance may cover the cost of replacing that property.
  • Personal injury: In the event someone is injured while on the business' property, such as if they slip and fall, general liability insurance may cover the cost of their medical treatment or other expenses.

Business Property Insurance

Business property insurance covers any commercial property you own, along with the contents of that property. This may insure the property against theft, vandalism, fire, and other similar events.

If you're renting a property, the company you're renting from may require you to cover any fixtures or fittings already in place.

Business Owner's Policy

Many smaller businesses opt for a business owner's policy that includes a package of some of the most important types of coverage listed here. A business owner's policy can often be more affordable than purchasing individual types of coverage and can be tailored to the needs of the specific business.

Your insurance provider can help you understand what your liabilities are and what coverage is most likely to be beneficial for your business, based on the number of employees you have, whether you're renting a premise or own it, the type of industry you operate in and the size of your business.

If your business processes data electronically, cyber liability insurance may be useful. This type of business insurance policy can cover the cost of notifying customers in the event of a data breach. It may also pay for credit monitoring for those customers. Having such insurance makes it easy for a business to respond promptly and proactively to a data breach, which can be beneficial from a public relations perspective.

Many businesses overlook cyber insurance, thinking that since they're not IT companies, they don't need it. Today, however, so many businesses process data online, so it's becoming increasingly important for even non-IT-focused organizations to consider how a cyberattack might impact their customers.

Commercial Flood Insurance

Commercial flood insurance offers peace of mind for businesses who are concerned about the possibility of flooding in their physical premises. This insurance can cover the cost of replacing stock or performing repairs to a building, shop fixtures and fittings, or anything else that might be damaged in the event of a flood.

In recent years, we've seen unprecedented weather events across the United States, making property insurance that includes cover for flooding and other similar issues become more important.

Employment Practices Liability Insurance

Employment practices liability insurance isn't mandatory for employers, unlike workers' compensation. However, it's a useful policy for employers to have. It covers the business' legal costs in the event it's accused of wrongful termination, sexual harassment, or discrimination. This gives the business the chance to defend itself against unfair allegations.

How Much Does Business Liability Insurance in Arizona Cost?

The cost of business insurance depends on the size of the business and the value of the assets being protected, as well as the level of risk. Insurance providers take into account the value of the policy, the type of coverage offered, and factors such as the type of industry the business is in and the location in which it operates when assessing the cost of a policy.

Another important factor to take into account is the likely level of loss the policy insures against. For example, professional liability insurance, or omission insurance, covers a business against claims in the event a customer accuses a business of being negligent or making a mistake. It covers the business' legal fees to defend against these accusations.

General liability insurance can cost as little as $29 per month for between $500,000 and $1,000,000 in coverage, although actual fees depend on several factors, including:

  • The industry of the business
  • How long it has been trading
  • The business' location
  • Whether the business has a history of claims
  • The number of employees the business has
  • The deductibles and policy limits selected

Get a Free Quote for Arizona Small Business Insurance

If you run a small business in Arizona and are unsure what type of insurance policy best suits your needs, our team is here to help by matching you with the right insurance provider. Give us a call at 877-907-5267 or complete the form above and one of our specialists will contact you right away.

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