Arizona Business Owners Policy Insurance

Let a local independent insurance agent help you find a comprehensive, yet affordable, policy.

Written by Meg Stefanac
Written by Meg Stefanac

Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Arizona Business Owners Policy Insurance

According to the US Small Business Administration, there are currently more than 550,000 small businesses operating in the state of Arizona. Many of these businesses may benefit from the insurance coverage offered by a business owners policy.

To learn more about how a business owners policy (or BOP) can protect your small or mid-sized business, you can talk to a local independent insurance agent. With more than 400 independent agents in the state of Arizona, it should be easy to find an insurance agent near you.

What Is a Business Owners Policy?

Business owners policies are policy packages that provide small and mid-sized businesses with protection against the common property and liability risks they are likely to face.

BOPs are specifically designed to cover businesses that face the same kinds of risks. These policies are ideal for small, low-risk businesses because they are not as comprehensive as traditional business insurance policy packages.

Business owners policies are typically renewed on an annual basis.

Is a Business Owners Policy Required in Arizona?

Business owners policies are not required by law in Arizona. However, there are times when you might need to have this coverage. 

  • If you are renting your business space, your landlord may mandate that you maintain a BOP or other form of business insurance as one of the terms of your lease.
  • If your business is currently making payments on a commercial mortgage or a business loan, your lender may require you to maintain a BOP or other business insurance policy until your loan is paid in full.

Talk to a local independent insurance agent or a financial adviser to learn more.

What Are the Business Owners Policy Eligibility Requirements in Arizona?

Small and mid-sized businesses with low liability risks are good candidates for business owners policies. More hazardous businesses like construction firms and transportation companies will need to purchase a traditional business insurance policy package instead.

There are always exceptions, but in general, your business will qualify for a business owners policy if the following are true:

  • You have fewer than 100 employees.
  • Your company is housed in a small office or workspace.
  • Your company generates annual revenues of less than $1 million.
  • Your company operates in a low-risk industry.
  • Your company requires fewer than 12 months of business interruption insurance.

If your business meets these criteria, talk to a local independent insurance agent to start reviewing business owners policy quotes. If not, your agent can help you review your other business insurance options.

What Is the Average Cost of a Business Owners Policy in Arizona?

Because they impose lower caps on their policy limits, business owners policies tend to be less expensive than traditional business insurance policies. This is great news for small business owners who are looking for affordable coverage.

Most small business owners opt to purchase BOPs that provide $1 million in coverage per occurrence with a $2 million aggregate limit for the lifetime of the policy, which is typically one year.

The average cost of a $1 million per occurrence / $2 million aggregate limit policy is about $100 a month. However, a very small business will typically pay about half that much.

To find out how much it will cost to cover your Arizona business with a BOP, consult a local independent insurance agent and start comparing customized quotes.


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What Does an Arizona Business Owners Policy Cover?

Your business owners policy is designed to provide your small to mid-sized company with most of the commercial coverage it is likely to need.

Standard BOP coverages

The following are the types of coverage you can expect to find in a standard business owners policy:

Endorsements that can be added to your BOP coverage

Most insurance companies will enable business owners to purchase endorsements that will add extra coverage options to their business owners policy. You may be able to add riders for:

  • Inland marine insurance: This is designed to cover your company’s valuable property whenever it is in transit or is being temporarily stored in another location.
  • Liquor liability insurance: This is designed to cover businesses that sell or serve alcoholic beverages, like restaurants and bars, if they are named in a liability lawsuit related to damage or injuries caused by an intoxicated patron.
  • Cyber liability insurance: This is designed to cover against cyber crimes like data breaches. Since most businesses currently store customer data electronically, this coverage is increasing in importance.

Talk to a local independent agent to find out whether any additional coverage your business may need is offered as a policy endorsement by your BOP provider. If not, you may need to purchase supplemental policies.

What Doesn't an Arizona Business Owners Policy Cover?

Business owners policies do not cover against everything. Because of this, you may need to buy additional stand-alone policies. If you need a lot of the coverage that isn’t included in a BOP, you may be better off buying a traditional business insurance policy package.

Specifically, a BOP will not cover:

  • Professional errors: In order to be covered against lawsuits related to errors in judgment, negligence, failure to act, and other professional mistakes, you will need to purchase professional liability insurance.
  • Vehicle accidents: If your business owns and operates vehicles, you will need to cover them with a commercial vehicle insurance policy that meets or exceeds Arizona’s minimum coverage requirements.
  • Worker injuries: With few exceptions, all employers in Arizona are required to carry workers' compensation insurance to cover worker injuries and occupational illnesses.
  • Insurance for employee benefits: If your business offers employee benefits like health insurance, life insurance, and disability insurance, you will need to purchase these policies separately.
  • Flood damage: Flood damage is excluded from nearly all types of insurance policies. If your business is at risk, you can purchase an affordable commercial flood insurance policy through the National Flood Insurance Program (NFIP).

Local independent insurance agents can help you find affordable supplemental coverage when needed. Talk to an agent near you to get more information.

How to Find the Best BOP Insurance Rates in Arizona

If you are looking for an ideal business owners policy to cover your small or mid-sized Arizona business, a local independent insurance agent can help. Because these agents are not tied to a particular insurance company, they are free to shop around to find a comprehensive policy at a competitive rate.

Find an insurance agent near you to get answers to your insurance-related questions as well as assistance with finding affordable BOP coverage.

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