Arizona Contractor Insurance: Cost & Quotes From $30/mo

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Lawsuits, exposures to safety hazards, inability to meet the set deadlines, and accidental damage to tools and equipment are all some of the inevitable risks Arizona contractors are exposed to. 

So how can you ensure that your contractor’s business is still running and making profits even when subjected to one or multiple risks mentioned above? Insurance is one of the best solutions. Read on to learn about the Arizona contractor insurance requirements. You will also know how each type of Arizona contractor insurance policy work.

Arizona Contractor Insurance Requirements

Here are the Arizona contractor insurance requirements you must meet

  • General liability insurance–The contractor must carry occurrence-form commercial general liability (CGL) insurance for physical injury, property damage, and broad form contractual responsibility. The policy should contain a $2,000,000 general aggregate limit, $1,000,000 products-completed operations limit, $1,000,000 personal and advertising injury limit, $50,000 damage to rented premises limit, and $1,000,000 each occurrence limit

  • Workers’ compensation insurance–Arizona’s workers’ compensation and employers’ liability insurance requirements typically include coverage limits of $1,000,000 per injury, $1,000,000 per employee for disease, and $1,000,000 per policy

  • Commercial auto insurance–The minimum combined single limit (CSL) of business automobile insurance in Arizona for owned, hired, and non-owned vehicles used in contract performance is $1,000,000

General Liability Insurance for Arizona Contractors

CoverWallet  NEXT (Best) Thimble Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $2,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $300,000/$1,000,000 $300,000 $100,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No No Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0


A general liability policy is commercial insurance that protects you from incurring any expense in the event your business operations or the products you sell, distribute, and manufacture cause your client bodily injuries and property damage. This insurance also confers financial immunity if your client, competitor, or another legal business entity sues for advertisement injuries, copyright infringement, or personal injuries.


Incidents When You Can Use This Arizona Contractor Insurance

  • When you are sued for advertising injury, copyright infringement, and reputational harm.

  • When the products you sell, distribute, or manufacture cause your clients bodily harm or property damages

  • When your business operations cause third-party bodily injuries and property damages.

Add-Ons for General Liability Insurance for Arizona Contractors

  • Umbrella insurance–This add-on acts as a financial backup in the event your general liability insurance coverage limits get exhausted and you are unable to pay for a given claim

  • Professional liability insurance–You can use this add-on if the products you sell, manufacture, or distribute cause third-party bodily injuries and property damages.

Coverage Limits for General Liability Insurance for Arizona Contractors

You should expect a maximum of $1 million as the coverage limit for each claim and a maximum of $2 million as the coverage limit for all the claims filed against your general liability policy. 


Professional Indemnity insurance for Arizona Contractors

CoverWallet  NEXT Thimble (Best) Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Can be included No
HIPAA coverage included? No No No No No
Sexual misconduct coverage included? No No No No Can be included
License defense coverage included? No No No No Can be included
Deductible  $500 $500 $500 $50/$10,000 $500


Under this Arizona contractor insurance, you and your employees are protected from any financial burden when a client cites negligence, oversights, and other lapses. Professional liability insurance is also known as an errors and omissions insurance policy.

Situations When You Can Use CustomThis Contractors Insurance Arizona

  • In the event, you are sued by your customer for breach of contract and violation of good faith

  • In the event, your customer demands to be compensated for property or a bodily injury after using your advice

  • In the event, you are unable to provide your professional services at the set deadline or as per the set standards, and your customers sue you

  • In the event, your customer serves you with a lawsuit alleging that you provided them with inaccurate, improper, or misleading information

Add-Ons for Professional Indemnity Insurance for Arizona Contractors

  • Public relations extensions–This add-on to the professional liability coverage of custom contractors insurance Arizona provides cash assistance to rehabilitate your business’s public image or reduce a public crisis after an insured peril

  • Loss of documents insurance–Under this add-on, you are conferred with financial immunity in the event your client’s documents get lost or destroyed by an insured peril

 

Coverage Limits for Professional Indemnity Insurance for Arizona Contractors

An insurer may pay you $10 million as the coverage limit for this policy. The size of your business, the approximate number of clients you provide your services to, and the levels of risks you are exposed to are some factors determining coverage limits.

Compare Cheap Arizona Contractor Insurance Quotes Online

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Commercial Property Insurance for Arizona Contractors

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $22,000 $25,000/$500,000 $25,000 $60,000
Outdoor signs Excluded $2,500 Excluded Excluded Excluded
Accounts receivable  Excluded Excluded $5,000/10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded
Lock and keys  Excluded $2,500 Excluded Excluded Excluded
Business interruption floater Excluded Included Included Included Excluded
Equipment breakdown floater Excluded Included Excluded Excluded Excluded
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Included Excluded


This Arizona contractor insurance provides you with financial aid if your owned and rented business premises and the contents found in them get partially or wholly destroyed by fire, vandalism, theft, and some weather-related incidents such as lightning and hailstorms.


Incidences Where You Can Use This Contractor Insurance Arizona

  • In the event, your rented or owned accommodation building gets destroyed by fire, theft, vandalism, and some weather-related events such as lightning and windstorm

  • In the event, your business’s physical assets such as office equipment, inventory, furniture, and signage get destroyed by an insured peril and you need financial aid to repair or replace them

Add-Ons for Commercial Property Insurance for Arizona Contractors

  • Spoilage insurance–If you use or deal with perishable products, this add-on may help cover you from incurring the cost of replacing the spoiled or damaged products

  • Crime insurance–This add-on reimburses your losses if an employee commits theft, forgery, and other dishonest acts

Coverage Limits for Commercial Property Insurance for Arizona Contractors

It’s approximately $2 million. The safety measures you have put in place to protect your building from the insured perils and the size of your commercial premises determine the coverage limits for this policy.


Business Owner’s Policy for Arizona Contractors

CoverWallet NEXT (Best) Thimble Hiscox The Hartford
Building coverage limit (minimum) $50,000 $260,000 $25,000/$500,000 $25,000 $60,000
Contents coverage limit (minimum) $50,000 $22,000 $25,000/$500,000 $25,000 $60,000
Outdoor signs Excluded $2,500 Excluded Excluded Excluded
Accounts receivable  Excluded Excluded $5,000/10,000 Included Excluded
Money and securities Excluded $2,500 $1,000 Included Excluded


This bundled business policy combines general liability insurance, commercial property insurance, and business interruption insurance. A BOP may offer professional liability, commercial auto, and workers comp, depending on the insurance company that underwrites it. 


Situations When You Can Use This Arizona Contractors Insurance

  • If your commercial property (both commercial buildings and the contents found in them) get destroyed by fire, theft, acts of vandalism, and some weather-related incidences

  • If you cannot pay your business premises rent and your employee’s payroll following a sudden stoppage or disruption of your revenue-generating activities due to an insured peril

  • If you are sued for copyright infringement, reputational harm, and advertising injury by your business competitor, client, or another legal business entity

  • In the event, your business operations cause third-party bodily injuries and property damages

  • If the products you manufacture, sell, or distribute cause your client bodily injuries or property damages

Add-Ons to BOP for Arizona Contractors

  • Cyber liability insurance–This add-on provides you with any financial aid you may need to mitigate any financial crisis your business may be subjected to following a cyberattack

  • Hired/non-owned auto coverage–This add-on covers the cost of accidents caused by hired or borrowed commercial vehicles 

Coverage Limits for Business Owner’s Policy for Arizona Contractors

The general liability coverage offers $1 million for each claim and $2 million for all the claims. Commercial property coverage, on the other hand, is $25,000-$60,000. 


Tools and Equipment Insurance for Arizona Contractors

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


This custom contractors insurance Arizona policy protects you from incurring the costs of replacing or repairing your working tools and equipment. It covers tools and  equipment lost, stolen, or unintentionally damaged by fire, vandalism, and weather-related events such as lightning and windstorms.


Add-Ons for Tools and Equipment Insurance for Arizona Contractors

  • Tools floater coverage–This will provide you with financial aid in the event the insured items get accidentally damaged, stolen, or lost while they are not on your business premises

  • Floods and earthquake insurance–Protects you from incurring costs of replacing or repairing your insured tools if they get destroyed or damaged by earthquakes and floods

Coverage Limits for Tools and Equipment Insurance for Arizona Contractors

This typically ranges between $700 to $5,000 per insured item. The market value of your insured item and the risks it’s exposed to greatly influence how much an insurer will pay you in the event your insured tools and equipment get lost, stolen, or unintentionally damaged by an insured peril.



Commercial Auto Insurance for Arizona Contractors

Commercial auto insurance protects you from any financial burden you may be subjected to after your business vehicle gets into an accident. Here are some situations where this insurance can help:

  • In case you get hit by an underinsured or uninsured motorist

  • If your commercial vehicle gets damaged upon collision or impact with another object or vehicle

  • In the event, you are liable to pay for your commercial driver’s and the passengers traveling in your commercial vehicle’s medical expenses

  • If you get injured while using or driving your commercial vehicle for business premises and you require medical attention/intervention

  • If your business automobile causes third-party bodily injuries or property damages

Add-Ons for Commercial Auto Insurance for Arizona Contractors

  • Zero depreciation cover–This add-on provides you with financial aid in the event you want to repair or replace some of your depreciated commercial vehicle parts

  • Engine protect coverage–Provides you with financial aid in the event your commercial vehicle engine (part or whole of it) gets destroyed by water ingress or an accidental oil leak

  • Spare car endorsement–This add-on covers your rental fees while your commercial vehicle is repaired or replaced after an accident or insured peril

Coverage Limits for This Arizona Contractors Insurance

The coverage limit under this policy is $1 million per occurrence for liability coverage and $10,000 per person for medical coverage. Your insurer of choice, your state’s regulatory coverage limits laws, and the types of risks your commercial vehicle is exposed to play a big role in determining how much an insurer will pay you following the occurrence of an insured risk under this policy.


Excess Liability Insurance for Arizona Contractors

This business insurance provides extra financial cover in the event your primary insurance policy coverage limits get exhausted. That is, you can use the coverage limits for this policy to pay for an uncovered liability or claim if your primary coverage limits were unable to. 

For instance, if you must pay $1 million for third-party bodily injuries caused by the use of your business products and your product liability insurance coverage limit is $800,000, then you can use the excess liability insurance coverage limit to cover the remaining $200,000.

Coverage Limits for Excess Liability Insurance for Arizona Contractors

The coverage limit under this Arizona contractor’s insurance ranges between $1 million to $100 million. 


Workers Compensation Insurance for Arizona   Contractors

Workers’ compensation insurance provides financial protection if your employees get injured or fall ill on the job. This insurance covers medical costs, wage loss, and rehabilitation expenses. Ensure that your employees are insured and that they meet Arizona’s legal requirements. It’s only in Wyoming and Texas where employers are not required by law to purchase this insurance policy.


Incidences When You Can Use This Arizona Contractors Insurance

  • If you are liable to pay for your employee’s medical expenses following a work-related injury or sickness

  • If your employee demands to be paid dismemberment or disability benefits following a job-related injury or sickness

  • If a named beneficiary wants to be paid for the burial benefits of your deceased employee

Add-Ons for Workers Comp Insurance for Arizona Contractors

  • Employers’ liability insurance–This add-on covers all the costs in the event your employees sue you for acts of negligence or inability to provide them with a safe working environment

  • Voluntary compensation insurance–This add-on covers work-related injuries and illnesses of your staff not covered by workers compensation insurance

Coverage Limits for Workers Compensation Insurance for Arizona Contractors

There is no fixed coverage limit under the workers compensation insurance for Arizona contractors. Important to note is that an insurer will still pay you out regardless of who is at fault.

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Arizona Contractor Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $39 $468 $0-$500
Professional liability insurance $50 $600 $1,000-$2,000
Commercial property insurance $65 $780 $1,000-$2,000
Business owner’s policy $84 $1,008 $1,500
Tools and equipment insurance $45 $540 $500-$1,000
Commercial auto insurance $53 $636 $500-$1,000
Workers compensation insurance $92 $1,104 $2,500-$5,000
Excess liability insurance $41 $492 $500-$1,000


The average Arizona contractor insurance cost is $39 per month or $468 per year for a $1 million general liability policy. Factors that affect premiums are claims history, business history, policy limits, deductibles, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:

Cost per Month Cost per Year Best for
NEXT $21 $252 Best overall; Fastest general liability insurance for contractors
CoverWallet $24 $288 Comparing contractor insurance quotes online
The Hartford $26 $312 Workers compensation insurance for contractors
Tivly $28 $336 Comparing contractor insurance quotes over the phone
Thimble $30 $360 Arizona contractors who operate on-call and are looking for on-demand or temporary coverage
Hiscox $32 $384 Contractor insurance with worldwide coverage

Compare Cheap Arizona Contractor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Arizona Contractors Insurance Companies

Here are the companies you might want to work with. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy:


NEXT

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT is a privately owned insurance company established in January 2016 by Guy Goldstein (the current CEO), Alon Huri, and Nissim Tapiro. Through AI technology, customers can report claims, purchase and manage their insurance policies any time of the day and week. 

Best for: Best overall; Fastest general liability insurance for contractors 

Average cost: $21 per month

Our rating: 10/10


CoverWallet

Pros

  • Competitively priced insurance premiums

  • Matches you with the best insurance policies that meet your business needs

  • Provides you with a platform to compare all the available coverage options

Cons

  • Not an insurance company but an insurance broker

CoverWallet provides its clients with automatic risk analysis and coverage recommendations. This company has partnered with Hiscox, Berkshire Hathaway Guard insurance company, Am Trust, Chubb, Progressive, Blackboard, and Liberty Mutual to provide its customers with custom contractors insurance sedona AZ policies.

Best for: Comparing contractor insurance quotes online

Average cost: $24 per month

Our rating: 10/10


The Hartford

Pros

  • Offers its policies at discounts

  • Financially dependable and capable

  • 24/7 online claim reporting

Cons

  • Only beneficial to AARP members

The Hartford is a long-standing online insurance carrier company that has been in operation since 1810. This A+ AM Best rated insurance company covers all over the 50 states. It sells both business and personal policies. 

Best for: Workers compensation insurance for contractors 

Average cost: $26 per month

Our rating: 10/10


Tivly

Pros

  • It’s time-saving

  • Provides you with an array of Arizona contractors insurance policies

  • Compare quotes over the phone

Cons

  • It’s not an actual insurance carrier

Tivly is an online insurance agency that specializes in matching its clientele with the best insurance policies that suit their commercial needs through its straightforward website. Despite not underwriting its policies and claims, Tivly can conveniently provide you with the following Arizona contractors policy: Workers comp insurance, BOP, general liability insurance, and commercial vehicle insurance. Call now to compare quotes over the phone. 

Best for: Comparing contractor insurance quotes over the phone 

Average cost: $28 per month

Our rating: 9/10


Thimble

Pros

  • Hourly coverage options

  • Competitively priced premium rates

  • You can cancel your premium rate payment plans without attracting a fine

  • You can report a claim through its mobile app

Cons

  • You can’t reach customer service by calling 

Thimble is a BBB-accredited insurance company. This privately owned insurance company, whose headquarters are located in New York, was founded in 2916 by Eugene Hertz and Jay Bregman. Over the years, this A- BBB-rated insurer has specialized in providing small business owners with flexible, customizable, and affordable hourly, day, and monthly coverage.

Best for: Arizona contractors who operate on-call and are looking for on-demand or temporary coverage

Average cost: $30 per month

Our rating: 9/10


Hiscox

Pros

  • It’s possible to purchase its policies from other independent insurance agents and Geico

  • Provides you with a 14-day money-back refund policy

  • Provides worldwide coverage for professional indemnity insurance

Cons

  • It’s yet to underwrite its policies for people living in Alaska

Hiscox is an insurance company that has been in operation since 1901. This internationally operating insurance company sells business insurance policies to small-scale business owners. To date, this insurer doesn’t provide its coverage to people living in Alaska.

Best for: Contractor insurance with worldwide coverage

Average cost: $32 per month

Our rating: 9/10

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