Business Insurance in Scottsdale, AZ
Experts break down commercial insurance costs, coverages, companies, and more for business owners in Scottsdale, AZ.
There are more than 35,000 businesses registered in the Scottsdale area. While these include the headquarters of many large corporations like Cold Stone Creamery, Go Daddy, and P.F. Chang’s, most of the companies in this Arizona city are small, privately owned businesses.
If you are among the proud business owners in Scottsdale, a good business insurance policy can shield your company from significant financial losses in times of trouble. A local independent insurance agent can help you find the best and most affordable coverage.
Is Business Insurance Required in Scottsdale, AZ?
Business insurance is not required by law. However, there are instances where you may need to have some types of coverage you might include in a business insurance policy package. For instance:
- If you want to take out a business loan or a commercial mortgage, your lender will require you to carry a business insurance policy until your loan is paid in full.
- If your business has at least one employee, Arizona state law requires you to carry workers’ compensation insurance (with a few exceptions).
- If you are a contractor, prospective clients may require you to show proof of liability insurance and workers’ compensation insurance before hiring you to do a job on their premises.
- If your business owns and operates a vehicle or a fleet of vehicles, you need to cover them with commercial vehicle insurance.
Even if you are not required to carry any of the coverage offered by business insurance, having a policy may be a good idea. This insurance can prove highly beneficial if your company faces an unexpected hardship like a liability lawsuit, a natural disaster, or a forced closure.
How Much Does Business Insurance Cost in Scottsdale, AZ?
Small businesses with few employees and limited property and liability coverage needs can usually get the coverage through a simple business owners policy, or “BOP.”
Businesses with more complex coverage needs may be better served by purchasing a traditional business insurance policy and customizing it to meet their specific coverage needs.
A BOP for a small business can cost as little as a hundred dollars a month, while a more complex business insurance policy package for a mid-sized company can cost a few thousand dollars monthly. Your company’s cost for coverage will be based on factors such as:
- The type of business you own and its expected annual revenues.
- The number of employees you have and the kinds of jobs they do.
- The value of your company’s property and other assets.
- Your company’s various liability exposures.
- The types of supplemental coverage you want to buy, if applicable.
The only way to determine how much coverage will cost for your Scottsdale business is by requesting customized quotes from a few different insurance providers. Every insurance provider has a unique way of calculating rates, so every company you contact will likely quote you at a different price.
Comparison shopping lets you choose the policy that offers the coverage you want at the most competitive rate. Independent insurance agents make comparison shopping easy.
What Does Business Insurance Cover in Scottsdale, AZ?
Whether you are purchasing a BOP or a traditional business insurance policy, you can expect it to protect your company with three types of coverage:
Each of these coverage types is explained in further detail below.
What Does Small Business Liability Insurance Cover in Scottsdale, AZ?
No business is too small to wind up on the wrong end of a liability lawsuit. Business liability insurance products are designed to shield your company from significant financial losses by covering expenses like legal fees, court costs, settlements, and judgments.
All BOPs and business insurance policies include general liability insurance. This covers the most common liability risks businesses face. General liability insurance includes:
- Premises liability insurance: This covers third-party injuries and property damage caused by accidents on your business premises.
- Product liability insurance: This covers third-party injuries, illnesses, and property damage caused by a product your company produces or sells.
- Media liability insurance: This covers accusations of copyright infringement, false advertising, deceptive pricing, and other marketing mishaps.
General liability insurance covers a lot, but it is not enough for many businesses. If your company has liability risks that go beyond what general liability insurance can cover, you may want to consider purchasing additional commercial liability products such as:
- Cyber liability insurance: This covers your business’s financial obligations to affected individuals if criminals successfully install skimmers on your credit card readers or hack into your company computer network and access personal, financial, or other sensitive data.
- Employment practices liability insurance (EPLI): This covers against accusations of illegal employment practices like discrimination, harassment, failure to promote, retaliation, and wrongful termination.
- Pollution liability insurance: This can cover cleanup costs, injuries, property damage, and other related costs if an accident or disaster causes toxic substances used, produced, or sold by your company to pollute the ground, water, or air.
- Liquor liability insurance: If your business sells or serves alcoholic beverages, this insurance is valuable. It can provide coverage if an intoxicated patron goes on to cause property damage or injuries to others, and the injured party names your business in a liability lawsuit.
- Workers’ compensation insurance: Though not technically a liability insurance product, this shields your company from potential liability lawsuits by covering your employees’ medical care, lost wages, and other financial losses if they are injured on the job.
This is not a complete list of all the commercial liability insurance products available to your business. A local independent agent can help you identify your company’s liability exposures and recommend the right insurance products to cover against them.
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What Kinds of Property Coverage Does Business Insurance Offer in Scottsdale, AZ?
All business insurance policies include commercial property insurance. This insurance is designed to cover repair or replacement costs if your company-owned property is damaged or destroyed because of a covered event.
Hazards your policy can cover your business against include:
- Fires: This includes accidental fires, wildfires, explosions, and damage caused by smoke and firefighting efforts.
- Property crimes: This includes crimes like shoplifting, theft, and vandalism.
- Severe weather: This includes events like thunderstorms, windstorms, lightning, and monsoons (but not the flooding that can accompany them).
You will want to be sure that your company’s property coverage limits are high enough to enable you to rebuild, repair, or replace all of your business-owned property following a disaster.
In Scottsdale, commercial property insurance alone may not be sufficient to cover your business property fully. If appropriate for your company, your agent may recommend supplementing your commercial property insurance with products like:
- Inland marine insurance: Commercial property insurance only covers your company’s property on your business premises. Inland marine insurance is designed to cover business property when it is located away from your place of business, such as at a job site or in a warehouse, and when it is in transit over land.
- Flood insurance: Commercial property insurance does not cover flood damage. Only 6% of the properties in this city have at least a 26% chance of sustaining significant flood damage over the next 30 years. That constitutes more than 7,000 homes and businesses. If your company is among them, you can purchase an affordable commercial flood insurance policy through the National Flood Insurance Program (NFIP).
- Earthquake insurance: Scottsdale has a moderate risk for earthquake damage, but seismic events are not covered by commercial property insurance. According to the US Geological Survey, this city has an 11.57% chance of experiencing a quake of magnitude 5.0 or greater over the next 50 years. You may therefore want to consider supplementing your coverage with an earthquake insurance policy.
Local independent agents are familiar with all the risks you face as a business owner in Scottsdale because they live and work in your community. Your agent can help to ensure that your business property is suitably covered against all the damaging risks it faces.
How Does Business Interruption Insurance Protect Companies in Scottsdale, AZ?
Sometimes, severe weather can cause problems in the Scottsdale area. When severe storms roll through the city, trees can be uprooted, roads can be damaged, and area businesses can face long-term power outages. This can necessitate many area businesses to close down while repairs are made.
Business interruption insurance, which is included in every BOP and business insurance policy, is designed to protect against this risk. It can provide a continuation of income if your company is forced to temporarily close down because of damage caused by a covered event.
With business interruption insurance, your company will have the funds needed to continue paying regular expenses like payroll, taxes, loan payments, and rent until repairs are made, and you can resume normal business operations.
What about Products to Include in Employee Benefits Packages?
Offering competitive employee benefits can help your business recruit and retain some of the area’s most talented workers.
If you plan to put together an employee benefits package, a local independent insurance agent can help. Your agent can shop around to find you reasonably priced products like:
- Employee health insurance plans
- Employee life insurance plans
- Simplified employee benefits plans (SEPs)
Your agent can also help you be sure that the health insurance policy you choose covers a wide range of doctors and some of the area’s best hospitals.
What Are the Best Small-Business Insurance Companies in Scottsdale, AZ?
The best business insurance companies in Arizona are the ones that are known to consistently provide their policyholders with exceptional customer service, reliable coverage, and competitive rates.
Independent insurance agents in Scottsdale have teamed up with some of the area’s top insurance providers, so you can be confident that any policies your agent recommends to you are offered by trustworthy providers.
Why Work with an Independent Insurance Agent in Scottsdale, AZ?
Independent agents are free to work with several competing insurance companies as they search for the policies that best fit your company’s coverage and budgetary needs. These agents can combine policies from different providers in one easy-to-manage business insurance policy package.
Arrange an obligation-free consultation with an independent insurance agent near you if you would like help assessing your company’s coverage needs and comparing customized business insurance quotes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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