Arizona Commercial Property Insurance

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Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

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 Commercial Property Insurance

In 2019, Arizona had $6,937,130,000 in commercial insurance claims paid. When you own a business, you have to account for all the what-ifs. Commercial property insurance is one of many policies your company may need.

An independent insurance agent can help you find affordable coverage. Since they work with several markets, you'll have options on premiums. Connect with a local adviser to get started.

What Does Commercial Property Insurance Cover?

In Arizona, your commercial property will fall under a few different categories. From your business belongings to an actual structure, there are many ways to cover your assets. Take a look at what is covered under a commercial property policy in Arizona.

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be based on an actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much your building is to replace or repair. Coverage can be on an actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will either be in replacement cost, actual cash value, or depreciated value.  

Commercial Property Insurance Cost

Similar to your other business insurance policies, your commercial property insurance costs will vary. Pricing depends on various items that the carriers use to set a rate. Check out the risk factors insurance companies use in Arizona.

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

Top five weather-related risks in Arizona

  1. Wildfires
  2. Flooding and water damage
  3. Severe storms and lightning damage
  4. Burglary and other property crimes
  5. Hurricanes and tropical storms

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How Much Commercial Property Insurance Do I Need?

With approximately 571,495 small businesses in Arizona, there are several industries to insure. Each commercial property will be rated individually. You will have to get your assets reviewed by a professional to know how much coverage is necessary. In the meantime, take a look at the different types of insurance given to commercial property owners.

  • Replacement cost: This will pay for your commercial property's current value at the time of loss in full. When you have a claim, it will restore or replace your property to like, kind, and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This meets in the middle of actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Who Needs Commercial Property Insurance?

From business equipment to structures, commercial property insurance can cover it all. Limits of protection are essential when your property helps your operation run. Take a look at the list below on who may need commercial property insurance.

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

When you go without adequate limits of insurance, you could be at serious risk. Judgments and bankruptcy could occur if you're unable to cover a loss. The right commercial property policy will give you the funds to repair or replace your belongings. 

Does Commercial General Liability Insurance Cover Property Damage?

Your Arizona general liability policy will cover different aspects of your business. Commercial property insurance can be combined on a package policy and work in conjunction with your general liability coverage. Like business umbrella insurance, each limit has its own role to play. Take a look at the facts.

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds — a package. This package will include general liability, commercial property, and more ancillary coverages together on one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How an Arizona Independent Agent Can Help

In Arizona, your commercial property insurance has several exposures. When you're looking at covering those risks, it's essential that you obtain the right policy. A licensed adviser can review your insurance for gaps and make sure you're getting adequate limits of protection.

An independent insurance agent has access to multiple markets so that you have options. They work on your behalf to find a rate that fits your budget. Connect with a local expert on in minutes.

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