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.
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
| 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.
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.
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.
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.
| 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
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
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.
Get all the best quotes from leading providers in a click of a button!
| 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.
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
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
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.
| 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.
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
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
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.
| 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.
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
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 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
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
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.
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.
The coverage limit under this Arizona contractor's insurance ranges between $1 million to $100 million.
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.
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
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
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.
| 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 |
Get all the best quotes from leading providers in a click of a button!
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:
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
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
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
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
Offers its policies at discounts
Financially dependable and capable
24/7 online claim reporting
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
It's time-saving
Provides you with an array of Arizona contractors insurance policies
Compare quotes over the phone
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
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
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
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
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
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow
Not all those who wander are lost.
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