Popular QuestionsPopular Questions about Business Insurance in Arizona

Why should I purchase Arizona business insurance?

Business insurance is designed to shield your company from financial losses brought about by potential hazards such as severe weather, property crimes, and liability lawsuits. This insurance can prove beneficial, as is evidenced by the fact that in 2016 alone, businesses in Arizona collected about $2.3 billion in insurance claims.

A local independent agent can help you build a business insurance plan that is customized to meet the specific needs of your business.

How have other business owners used their commercial insurance?

Liability lawsuits can be very expensive for businesses to deal with. In addition to potential damages brought about by large judgments, there are costs related to legal fees, court costs, and employee time off for the purpose of testifying. All this can really add up for a business that doesn’t have the right liability insurance coverage.

Here are some other common hazards American companies have been using their business insurance to cover:

  • Theft and burglary: Average cost per claim - $8,000
  • Water damage and freezing pipes: Average cost per claim - $17,000
  • Wind and hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slip and fall: Average cost per claim - $20,000
How does Arizona business insurance help my company?

Businesses insurance is designed to pay for losses, damages, and other expenses associated with covered events so that your company doesn’t have to.

If your inventory is damaged, a customer files a liability lawsuit, or an employee is severely injured on the job, as long as you have the right business insurance coverage in place, you won't have to worry about how the related expenses will affect your company’s bottom line.

Here are some of the things you can expect a well-built business insurance policy package to do for your business:

Pay for Damage to Your Business Property

  • This is covered by commercial property insurance.
  • Commercial property insurance can cover the building in which your business is housed (if owned by your company) as well as your company's assets, including tools, machinery, inventory, computers, furniture, outdoor signs, and more.
  • Example: An electrical storm sparks a fire at your store while it is closed. Tens of thousands of dollars’ worth of inventory is damaged by flames, smoke, and firefighting efforts and must be thrown out.

Pay for Someone Else’s Medical Bills or Property Damage

  • This is covered by commercial general liability insurance (CGL).
  • CGL covers many of the most common liability lawsuits faced by businesses. If a third party is injured on your business premises, or if a product your company produces or sells causes injuries or property damage to others, this insurance can cover the related expenses.
  • Example: A customer in your store slips on a wet floor and suffers a hip fracture that requires surgery.

Pay for Accidents Involving Company Vehicles

  • This is covered by commercial vehicle insurance.
  • Commercial vehicle insurance is required for all company-owned vehicles. Minimum coverage amounts depend on the type of vehicle you are insuring.
  • Example: One of your sales representatives is distracted by his GPS while driving to product expo in a company van and causes an accident.

Pay for Employee Injuries and Work-Related Illnesses

  • This is covered by worker's compensation insurance.
  • Worker's comp insurance is required for all employers in this state. It covers medical expenses and disability pay for workers who are injured on the job.
  • Example: An employee at your manufacturing plant suffers serious burns when a machine malfunctions.

Provide a Continuation of Income During a Forced Closure

  • This is covered by business interruption insurance.
  • Business interruption insurance can cover regular monthly expenses like loan installments, employee salaries, and rent during times that your business must remain closed temporarily due to a covered event.
  • Example: A hurricane causes a tree to uproot and it falls onto your business. It takes several weeks before repairs can be made and damaged equipment and inventory can be replaced so your company can resume normal operations.

… and More!

In many cases, these business policies are not enough to fully cover your business against all of its potential risks.

Fortunately, there are many more commercial insurance products and options available, so with the help of an independent insurance agent, you can find the policies you need to mitigate all of exposures that may cause financial harm to your business.

Does Arizona require businesses to have insurance?

A business insurance policy in and of itself is not required by law. However, certain types of coverage that are typically included in most business insurance policy packages may be required. 

  • Businesses that have company-owned vehicles are required by law to carry commercial auto insurance that meets or exceeds state-mandated minimum coverage.
  • All employers in Arizona are required by state law to carry worker's compensation insurance.
  • Construction, renovation, and other contracting businesses will nearly always be required by their clients to show proof of contractors insurance before they can be hired to do a job.
  • Company owners who want to take out a business loan or line of credit typically need to show their financial institution proof of business insurance before they can qualify for a loan.

To learn more about coverage that you may need to carry, you can talk with a local independent insurance agent.

How do I find the best price for Arizona business insurance?

Commercial insurance premiums are calculated using a number of factors such as the type of business you own, the value of your company assets, the number of employees you have, your liability coverage needs, the amount of coverage you want to purchase, and more.

Business coverage needs can vary significantly by industry, so it is best to talk with an experienced insurance agent when you are working to build a comprehensive, yet affordable, policy package for your company. These agents can help you make sure that you are getting the right coverage for each of your company’s potential exposures while avoiding purchasing policies your business does not need.

Also, because independent agents are free to work with multiple insurance providers, they can search for the best price for each type of coverage you need. Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your local independent agent.

Are there any independent agents in Arizona?

Yes! There are currently 401 independent insurance agents in Arizona. These agents are ready to help you find the best and most affordable coverage for your business.

Independent insurance agents can work with several different insurance providers to find you a comprehensive and competitively priced business insurance portfolio. Contact an insurance agent near you to discover how much time and money you can save by working with one of these experienced insurance professionals.

InformationFind the Best Insurance in Your City

Let's take a look at some factors that can influence business insurance rates and see how your city measures up.

  • Number of business in the US: 27,626,360
  • Number of businesses in Arizona:  995,671
  • Burglary rate per 1,000 residents in the US: 3.76
  • Burglary rate per 1,000 residents in AZ:  4.40
  • Auto theft rate per 1,000 vehicles in the US: 2.29
  • Auto theft rate per 1,000 vehicles in AZ:  2.67
City Population  Number of Established Firms Burglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Avondale87,9314,7594.512.86
Buckeye79,6202,4772.400.90
Chandler261,16520,6072.571.24
Gilbert254,11418,6231.640.61
Glendale252,38116,7834.226.57
Goodyear86,8404,4624.361.21
Mesa518,01233,1133.101.71
Peoria175,96112,0603.051.28
Phoenix1,680,992124,0336.344.73
San Tan Valley93,2302,9132.141.24
Scottsdale258,06936,6252.791.07
Surprise141,6647,0481.751.41
Tempe195,80517,0375.392.85
Tucson548,07341,6196.064.78
Yuma98,2856,1634.232.26

Phoenix, AZ Business Insurance

Covering Your Business Assets

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.

Worker's 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. Worker’s 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.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Phoenix, AZ would pay for worker's comp insurance:

  • Healthcare industry: $1,280 a year
  • Construction industry: $6,200 a year
  • Accommodation and food services industry: $2,150 a year

As you can see, the rate for covering construction worker is significantly higher than the other top industries in this city. That is because construction workers are far more likely to suffer severe injuries than employees of medical facilities, restaurants, and hotels. Your local independent agent can help you find a reasonably priced policy that is well-suited to meet the coverage needs of your Phoenix business.

Tucson, AZ Commercial Insurance

Covering Your Business Assets

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 rainy season as well. Make sure your business property is fully insured by consulting an independent insurance agent near you.

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 employee who will be driving them, and the risk of collisions and vehicle theft where these vehicles will be driven.

Worker's Compensation

Worker's 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.

For every $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Tucson, AZ would pay for worker's comp insurance:

  • Healthcare industry: $1,280 a year
  • Educational services industry: $950 a year
  • Accommodation and food services industry: $2,150 a year

Hotel and restaurant workers suffer more frequent and significant injuries than teachers, so the cost for coverage in this industry is higher. Keep in mind, however, that even within each industry, rates can vary significantly from one business to the next. Within the healthcare industry, a trauma nurse at Banner University Medical Center is more likely to be injured on the job than a nurse at an ophthalmologist’s office, and therefore will cost more to insure. You can talk to an independent insurance agent in Tucson to find out how much it will cost to cover the employees who work for your business.

Mesa, AZ Business Insurance

Covering Your Business Assets

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. Find a policy and rate that works for your Mesa business by teaming up with a local independent agent.

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. A local independent insurance agent can help you find a suitable policy at a competitive price.

Worker's Compensation

Worker's 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 nearly 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.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Mesa, AZ would pay for worker's comp coverage:

  • Healthcare industry: $1,280 a year
  • Construction industry: $6,200 a year
  • Educational services industry: $950 a year

Rates for coverage are set by the state in accordance with the various hazards associated with each particular job. This means that employees in dangerous professions like construction will cost a lot more to insure than most other jobs. Maintaining a safe workplace and keeping accidents at a minimum can help to lower your worker's compensation premiums. 

Chandler, AZ Business Insurance

Covering Your Business Assets

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, truck, 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.

Worker's Compensation

Worker's 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.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Chandler, AZ would pay for workers’ comp coverage:

  • Healthcare industry: $1,280 a year
  • Finance and insurance industry: $205 a year
  • Professional, scientific and technical services industry: $325 a year

Keep in mind that these average rates represent large industry umbrellas, so rates can vary significantly from one business to the next, even if both businesses operate in the same industry. White-collar jobs in office environments tend to present a very low risk of injuries, so those in jobs like accounting and graphic design are typically very inexpensive to insure. Talk to an independent agent in Chandler to start comparing quotes for worker's comp coverage for your business.

Scottsdale, AZ Business Insurance

Covering Your Business Assets

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. Talk to a local independent insurance agent to learn what you can do to safeguard your company and lower your costs for coverage.

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.

Worker's 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 worker’s compensation rates can vary significantly from one business to the next.

Based on a $100,000 annual payroll, here is an estimate of what businesses in the three leading industries in Scottsdale, AZ would pay for workers comp coverage:

  • Healthcare industry: $1,280 a year
  • Professional, scientific and technical services industry: $325 a year
  • Finance and insurance industry: $205 a year

A nurse in the emergency room at HonorHealth Scottsdale Shea Medical Center is more likely to be injured on the job than a financial analyst or system programmer working in an office environment. It therefore follows that rates to cover workers in the healthcare field are more expensive than in industries that are primarily made up of white-collar desk jobs. To find out how much it will cost to cover the employees who work for you, contact a local independent agent to obtain and compare rates.