Arizona Business Insurance FAQ - Quick Answers

While you can't know your exact costs when purchasing small business insurance, you can understand what affects your rates. Check out what the carriers use when calculating your commercial insurance premiums below:

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

In Arizona, not all necessary business insurance policies are required by law, but some are. Workers' compensation insurance is required when you have just one employee in the state of Arizona. Likewise, if you own company titled vehicles, you'll need to follow the state's car insurance guidelines.

Every Arizona small business will need coverage for different risks depending on the type of industry and exposures. However, there are some primary policies that are commonly obtained when insuring your company and they are as follows:

General liability insurance is one of the first policies every small business owner obtains. This coverage 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.

In most states, offering health insurance to your staff members as a small business isn't usually mandatory. If you have under 50 employees, you are not required to provide health insurance to your team, by law, but you can still do so for added benefit. Check with your trusted adviser to obtain costs and gather options on health insurance for your Arizona small business.

To find the best small business insurance for your operation, you'll need to know where to start. In Arizona, Progressive, Nationwide, Travelers, and Stillwater insurance companies are highly rated among competitors. This is due to their superior customer service and broad coverage offerings. 

Do You Know What Your Business Insurance Covers in Arizona?

Find the Best Business Insurance in Your City

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
Avondale4,7594.372.84
Buckeye2,4771.870.8
Chandler20,6072.11.45
Gilbert18,6231.590.61
Glendale16,7835.583.19
Goodyear4,4623.871.25
Mesa33,1132.931.62
Peoria12,0602.511.39
Phoenix124,0335.614.19
Scottsdale36,6252.541.01
Surprise7,0481.540.97
Tempe17,0374.693.09
Tucson41,6194.554.1
Yuma6,1634.892.36
  • Phoenix, AZ 
  • Business Insurance Common Coverage Options
  • 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.


  • Tucson, AZ 
  • Business Insurance Common Coverage Options
  • 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. 
  • 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.


  • Mesa, AZ
  • Business Insurance Common Coverage Options
  • 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.



  • Chandler, AZ
  • Business Insurance Common Coverage Options
  • 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.


  • Scottsdale, AZ
  • Business Insurance Common Coverage Options
  • 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.