Find the Best Business Insurance Options in Arizona

Arizona has a dynamic and growing economy. There are around 641,000 small businesses in Arizona, which represents over 99 percent of the businesses in the state. 

Business owners in Arizona face various risks, from severe weather, fires, and other kinds of property damage to the financial devastation that a single lawsuit can bring. If you own a business in Arizona, a comprehensive business insurance program can help you repair and rebuild damaged property after a disaster. It can help you stay in business and pay for your defense if you are faced with a lawsuit.

An independent insurance agent can help you compare business insurance quotes in Arizona. 

Best Business Insurance Companies in Arizona

There are numerous insurance companies that offer business insurance in Arizona. The following are some of the best business insurance companies in Arizona. They are highly rated for their mix of valuable coverage offerings and competitive pricing. 

  • West Bend: West Bend is a with core values that emphasize excellence, integrity, and responsibility. The company offers highly-rated business insurance in Arizona. 
  • Travelers: Travelers offers highly rated business insurance in Arizona. The company provides a variety of business insurance options, including inland marine, workers' compensation, and general liability. 
  • Progressive: Progressive is based in Ohio, but offers business insurance across all 50 states, including Arizona. Arizona's residents can look to Progressive for most of their business insurance needs. 
  • Nationwide: Nationwide provides business insurance and other popular types of insurance coverage in Arizona. The company is headquartered in Columbus, OH, and is represented by independent insurance agents in 50 states, including Arizona. 
  • Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today the company offers a flexible, multiline range of coverages designed to meet the needs of any business, regardless of size or industry. 

An independent insurance agent in your area can help you learn more about these and other Arizona business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Arizona business insurance needs.

Arizona Business Insurance Requirements

Business insurance is a package of insurance policies covering your property and liability risks. Arizona law does not require most types of business insurance. But if your business owns any vehicles, you're likely to have to buy commercial vehicle insurance that complies with the state’s financial responsibility laws.

In addition, Arizona employers with one or more employees must purchase workers’ compensation insurance, with a few exceptions. Workers' compensation insurance helps injured workers pay for the costs of medical care and lost wages if they are injured on the job.

Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance and workers’ compensation insurance in Arizona.

What Business Insurance Covers in Arizona

A typical business insurance package in Arizona will include the following types of coverage, at a minimum:

  • Commercial general liability (CGL) insurance: Protects your business from lawsuits related to bodily injury and property damage claims. It pays for medical expenses, legal fees, and financial settlements or judgments. Your CGL policy even covers personal injury claims such as libel and slander.
  • Commercial property insurance: This covers damage to a building and its contents if damaged by a weather event, fire, theft, vandalism, and other covered perils. 
  • Business interruption coverage: Protects your earnings and pays certain expenses if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. If you are forced to close for a while to make repairs or rebuild your business, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
  • Commercial auto insurance: Protects your business-owned cars and trucks from property damage and liability claims. 
  • Workers’ compensation insurance: Pays for medical expenses and a portion of an employee's lost wages after a work-related injury. 

Your business insurance in Arizona may include additional policies that cover your unique risks. 

Liability Coverage Options for Small Businesses in Arizona

Many small businesses would have a hard time recovering if they were faced with a lawsuit. Liability insurance can cover you when you’re accused of causing harm to an individual or another business. There a numerous liability coverage options for small businesses in Arizona. 

commercial general liability (CGL) policy offers protection from many types of negligence claims, from simple trips and falls on your premises to significant product liability cases. It covers your legal costs, the injured party's medical expenses, other damages for the injured party, and any settlements or judgments you must pay.

Be aware that CGL policies do not protect you from every type of lawsuit. You're likely to need additional liability policies or endorsements that supplement your CGL policy and eliminate any gaps in your protection. 

Talk to your independent insurance agent about why you might need environmental liability insuranceprofessional liability insurancecyber liability insurance, or other types of liability coverage for your Arizona business.

Property Coverage Options for Small Businesses in Arizona

Property losses can originate in a variety of ways and cause tremendous harm to your business. Here are the basic business property coverage options in Arizona:

Commercial Property Insurance 

  • Protects you when your commercial property is damaged by someone else or by some type of unforeseen event. 
  • You need business property insurance if you own your building or have tangible business assets (furniture, computers, fixtures, inventory, materials, tools, etc.).
  • Repairs or replaces damaged or destroyed commercial property after damage due to fire, vandalism, smoke, theft, severe weather, and other causes of loss. 

Business Interruption Insurance

  • Usually included as part of a commercial property policy. 
  • Protects your earnings if your business is unable to operate because of damage after a fire, hail, wind, equipment breakdown, or some other covered event. 
  • If you’re forced to close your doors for a period of time in order to make repairs, this coverage pays for rent, employee salaries, lost income, relocation fees, and more. 

A local independent insurance agent can help you get quotes for business property insurance in Arizona.

Other Insurance Options for Small Business Owners in Arizona

Your business insurance needs probably don’t end with basic property and liability coverage. Other insurance options for small business owners in Arizona include:

This is not an exhaustive list of your business insurance options in Arizona. An independent insurance agent can make sure that all of your Arizona business insurance needs are met. 

Average Cost of Business Insurance in Arizona

Because every business is unique and there are many variables that contribute to the cost of business insurance, it is difficult to compute the average cost of business insurance in Arizona. Several factors, including the following, influence the cost of Arizona business insurance:

  • The size and physical location of your business
  • Your number of employees
  • Your gross sales and payroll
  • The nature of your business (what do you do?)
  • The value of your physical assets (buildings, vehicles, machines, equipment, inventory, etc.)
  • Your prior claims history
  • The types and amounts of coverage that you need

An independent business insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Arizona.

National Business Insurance Stats

Number of businesses in the US: 30,819,176

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars

How Does Your Arizona City Measure Up?

Property: Theft, vandalism, and severe weather events can all lead to costly business property losses. So can damage caused by structure fires. A fire could potentially break out at your workplace due to a machine malfunction, employee error, or even because of a wildfire. Fortunately, when you have commercial property insurance, your company will be able to repair damage and continue to function without experiencing a large financial loss.

Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need to cover the cars, vans, trucks, or buses with commercial auto insurance. Your rates will be based on several factors, including the number and types of vehicles you are covering and details about who will be driving them and where.

Workers' compensation: Workers' compensation insurance can cover medical bills and lost wages for workers who are injured on the job or come down with an occupational illness that requires medical attention. Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their job classifications.

Property: Your business has probably invested a lot in its various assets, including machinery, inventory, and supplies. Commercial property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged due to a covered event.

Commercial auto: Many businesses in Mesa have company-owned vehicles. If yours is among them, you will need to cover your cars, vans, buses, or trucks with a commercial auto insurance policy that meets or exceeds the state’s minimum coverage requirements. 

Workers' compensation: Workers' compensation insurance covers medical bills and lost wages for workers who suffer from occupational illnesses or are injured while doing their jobs. It is required for all Arizona businesses that have at least one employee. Rates are assigned in accordance with the types of jobs your workers do and how much they are paid.

Property: The tornado risk in Phoenix is not especially high, but that does not mean it doesn’t exist. In November 2019, the Phoenix area was hit with three tornadoes early one morning. These twisters caused significant damage to area homes and businesses. A solid commercial property insurance policy can cover your company’s losses if a tornado causes damage to your business property.

Commercial auto: You are required to have commercial auto insurance if your business owns a vehicle or a fleet of vehicles. Rates are based on a number of factors like the types of vehicles you are covering. It costs more to insure a passenger van than a cargo van, since your liability risks are greater when you have passengers. Large trucks and construction vehicles will also need to meet certain coverage requirements as mandated by the state.

Workers' compensation: Workers’ compensation insurance covers the cost of medical treatment, lost wages, and other expenses related to injuries your employees may experience while doing their jobs. It is required for all employers in Arizona. Workers' compensation rates are assigned according to your company’s overall payroll and the risk of worker injury based on the types of jobs your employees do.

Property: In addition to damage caused by severe weather events, crimes like theft and embezzlement can lead to expensive losses if you do not have sufficient business insurance. The relatively low crime rate in Scottsdale can help to keep your coverage rates affordable. 

Commercial auto: Whether you are insuring a delivery van or a fleet of semi-trucks, commercial vehicle insurance can cover your company’s increased liability risks as well as any expenses related to property damage. If you engage in interstate commerce, a local agent can ensure that your policy’s coverage amounts meet both state and federal minimum requirements.

Workers' compensation: Workers’ compensation insurance is required of all employers in Arizona. This insurance can cover medical treatment, lost wages, and other costs associated with workplace injuries and occupational illnesses. Every workplace has specific risks and hazards faced by its workers, which is why workers' compensation rates can vary significantly from one business to the next.

Property: Having sufficient commercial property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events. Adding a commercial flood insurance policy to your coverage portfolio can protect your business against the hazard of overflow events during the rainy season as well. 

Commercial auto: Accidents can happen anywhere, especially on Interstate 10. If your business owns a vehicle or fleet of vehicles, you will need to cover them with commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, details about the employees who will be driving them, and the risk of collisions and vehicle theft where these vehicles will be driven.

Workers' compensation: Workers' compensation insurance covers medical expenses and disability pay for employees who are injured on the job. If your Tucson business has employees, you are required by law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.

Popular Questions About Business Insurance in Arizona

While you can't predict the exact costs of small business insurance in Arizona, it’s important to understand what variables play a role in your rates. Here are just a few of the factors that insurance companies use when calculating your business insurance costs in Arizona:

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Past claims reported
  • Number of years in operation

In Arizona, it’s essential for almost every business to carry a comprehensive business insurance package. But business insurance is not required by law in Arizona, except for workers’ compensation insurance. Workers’ compensation is required for every employer with one or more employees, with a few exceptions. 

In addition, if you own any vehicles, you’re required to comply with Arizona’s car insurance laws. 

Most businesses in Arizona need a combination of property and liability insurance, in addition to workers’ compensation insurance and commercial vehicle insurance as required by the state. 

Depending on your unique business and the risks you face, you’ll probably need some additional coverage, such as professional liability insurance, commercial umbrella insurance, or cyber liability insurance

Small business general liability insurance is one of the first policies every small business owner obtains. It helps protect your operation from bodily injury and property damage lawsuits that come your way as a result of doing business. Though not mandatory by Arizona state law, this policy is necessary to avoid major financial ruin if you're faced with a lawsuit.

Health insurance and other employee benefits are important for many small businesses and their employees. A good employee benefits plan helps companies support a healthy and satisfied workforce. In addition, employers who offer employee health plans may also be eligible for significant tax benefits. 

There are many different health insurance policy types and options available for you to choose from. An independent insurance agent can help you find small business health insurance plans in Arizona.

West BendTravelersProgressiveNationwide, and Liberty Mutual are some of the best small business insurance companies in Arizona. They are highly rated for offering broad coverage, top-notch customer service, and a variety of affordable options for business owners.

Do You Know What Your Business Insurance Covers in Arizona?