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7 Best Business Insurance in Arizona for 2022

The Grand Canyon State is well-known for its breathtaking views, but Arizona is also a hive of business activity. The state is home to over 500,000 businesses, and that number is growing at a rate of nearly 3% per year. Small businesses are critical to Arizona’s economic well-being accounting for more than 97 percent of all employers in the state. In 2008, 106,803 of Arizona’s 488,456 small businesses were small employers, accounting for more than 47 percent of the state’s private-sector jobs. Another 381,653 were sole proprietorships with no employees.

These small businesses are unique as they do not have the resources to pay for medical bills or expensive lawsuits associated with different perils. However, problems happen even when business owners take the most precautions. For instance, over 59,000 work-related injuries occurred in the private industry in Arizona in 2020. 

As a business owner in Arizona, getting business insurance is the most thoughtful way to protect your business from problems. But then, the type of coverage you require will depend on the nature of your business and the number of employees.

Are you looking for a business insurance policy but don’t know where to begin? Make use of our guide to find the best commercial insurance in Arizona.

The 7 best business insurance companies in Arizona

  • CoverWallet: Best for comparing several quotes online 
  • Simply Business: Best for comparing general liability insurance quotes 
  • Hiscox: Best for professional liability insurance 
  • Employers: Best for workers comp insurance  
  • The Hartford: Best Overall 
  • Progressive: Best for commercial auto insurance 
  • Chubb: Best for Business Owners Policy insurance

CoverWallet: Best for comparing several quotes online

If you need to compare quotes from different companies without going through the stress of checking them individually, then coverwallet is your best bet. CoverWallet provides all common types of business insurance, such as general liability, product liability, worker’s compensation, and business owner’s policies. However, because the company is an insurance broker rather than a provider, it does not underwrite its policies. Instead, it uses deep analytics and a proprietary algorithm to provide competitive quotes.

Simply Business: Best for comparing general liability insurance quotes 

Simply Business allows users to receive coverage recommendations and quotes from the company’s insurance partners in under 10 minutes. The platform is simple to use and has a wealth of industry-specific resources for different types of small businesses. They collaborate with reputable carriers such as Axis, Harborway, and Travelers, which means you will get quality recommendations from the website. The site is a good option for small business owners who want to quickly compare quotes for general liability insurance or people who are unsure of the type of coverage they should get.

Hiscox: Best for professional liability insurance 

Hiscox is an insurance company that specializes in providing small business customers with entirely customized insurance solutions. It focuses on the specific risks that your company faces to put together the best coverage options to meet your needs. This insurance company offers protection for various professions, including IT professionals, contractors, architects, engineers, etc. Hiscox is committed to assisting its customers in ensuring that they have coverage that meets most contract insurance requirements. It also covers work performed globally as long as the claim is filed in the United States, a U.S. territory, or Canada. You can rely on Hiscox to work with your company to ensure that you have all the coverage you require.

Employers: Best for workers comp insurance  

Employers is one of those insurance companies in the US with a long history dating back to 1913. The insurer has provided top-quality, cost-effective worker’s compensation insurance to small businesses in the US for over 100 years. EMPLOYERS is committed to keeping America’s small businesses operational and safe. They show this commitment by offering competitive pricing, financial stability, and dependability to the numerous customers that use their services. Employers has all it takes in terms of experience, financial stability, knowledge, and resources to provide the coverage and specialized services that America’s small businesses require. Unfortunately, the company does not offer quotes on its website. Companies that need quotes have to visit their website to find the nearest agent to get their manual quotes. 

The Hartford: Best Overall

 The Hartford is one of the oldest insurers in the US, with over 200 years of experience. Over the years, the company has shown its commitment to providing small businesses with customized insurance solutions. It provides various insurance products, such as general liability, commercial auto, professional liability, workers’ compensation, and others. The Hartford’s Business Owner’s Policy (BOP) combines three critical coverages into a single policy. Its business owner’s policy (BOP) includes general liability, business property, and income insurance. Whether you’re a sole proprietorship or another type of small business, The Hartford can assist you in determining the appropriate types of insurance, and coverage amounts to meet your needs.

Progressive: Best for commercial auto insurance 

Progressive insurance is popular in Arizona for its ads about cheap auto insurance. However, commercial auto insurance is not the only insurance coverage they have. There are options for the most common business coverages, and they offer them at competitive rates. These policies include general liability, professional liability, and workers’ compensation. Progressive offers a business owners’ policy that combines general liability insurance with property protection. You can also combine commercial auto insurance. Progressive collaborates with affiliated insurers to provide you with a choice of up to four providers for your coverage. It is important to note that progressive is an A-rated insurer.

Chubb: Best for Business Owners Policy insurance

Chubb is a global insurance company that writes $40 billion in individual and commercial policies each year. The company has a robust offering of business insurance coverages. Chubb’s business owners’ policy is well-suited for small and large businesses in over a thousand different industry classification codes. This policy combines general liability and commercial property insurances, and other coverage needed by different industries.

Unfortunately, Chubb does not provide online quotes for any commercial insurance policies. So, if you need a policy from the company, you can only do that through an agent. It’s also worth noting that Chubb ranks near the top of the industry in terms of both financial stability and customer satisfaction. The service provider has an A++ rating from AM best and earns one of the top positions in the prestigious JD Power Annual Customer Satisfaction Survey.

What type of business insurance is required in Arizona?

The laws of Arizona specify that you carry some types of business insurance based on some conditions. These coverages include the following:

Workers’ compensation insurance is required in Arizona

If you own a business in Arizona with at least one employee, the laws of Arizona require that you carry a worker’s compensation policy. The law stands whether the worker you have is a full-time staff or works part-time. 

However, according to the Arizona state laws, independent contractors, casual or occasional workers, and domestic workers who only work in the home are exempt from having this workers comp insurance. However, it is still a good idea for everyone to have this coverage to protect yourself from injuries at work.

Workers’ compensation insurance protects employees working in your organization. If your employee sustains an injury or illness at work, they will receive coverage for the medical care required to diagnose and treat the condition. It may also compensate your employee for lost wages while they recover from a work-related illness. This type of insurance can also help protect your company from financial loss if you’re involved in a lawsuit from an employee or their family as a result of work-related injuries.

Learn more at the best workers comp insurance companies and the cheapest workers comp insurance companies.

Commercial Auto Insurance is required in Arizona

If you use a car for business purposes in Arizona, you must carry commercial auto insurance by law. The following are Arizona’s minimum auto insurance requirements:

  • bodily injury liability of $25,000 per person 
  • bodily injury liability of $50,000 per accident
  • Property damage liability of $15,000 per accident

Learn more at the best commercial auto insurance companies.

To comply with regulations, trucking companies may require additional coverage. Learn more at commercial truck insurance minimum requirements and the best commercial truck insurance companies.

What other insurance coverage do I may need for my small business in Arizona?

As a small business owner in Arizona, several types of small business insurance coverages are available to you. The following are some of the most common options that business owners in Arizona use: 

General liability insurance in Arizona

General liability insurance protects your company from financial loss resulting from various claims. If your company faces a claim due to an injury suffered by a non-employee, your general liability insurance policy will cover the person’s related medical expenses. This type of insurance can also protect your company from financial losses caused by property damage claims, libel, and slander. Learn more at the best general liability insurance companies and the cheapest general liability insurance companies.

Home-based businesses insurance in Arizona

If your business is run from home, you can get home-based business insurance. This insurance can come in addition to your homeowners’ policy. It provides coverage for a limited amount of business equipment and liability coverage for third-party injuries. Learn more at the best home-based business insurance companies.

Commercial property insurance in Arizona

Commercial property insurance is essential for businesses that own real estate. It protects your business’s property and physical assets from loss and damage caused by events, similar to how homeowners’ insurance protects your home. Damage from fire, smoke, wind, and hail storms, as well as civil disobedience and vandalism, are all covered events. Learn more at the best commercial property insurance companies.

Professional liability insurance in Arizona

Professional liability insurance is designed for companies that offer professional services to their customers or clients. This policy is essential because malpractice, error, or negligence in such professions can be deadly or costly. As such, the policy will cover such a company if a claim is filed for error or malpractice. Learn more at the best professional liability insurance companies.

Product liability insurance in Arizona

This type of business insurance protects wholesale, distribution, or retail sales companies. If a defective product associated with your company causes injury or bodily harm, you can use product liability coverage to protect your company from financial loss. Learn more at the best product liability insurance companies.

What affects the business insurance cost in Arizona?

Different companies have their method of calculating the premiums. However, the business insurance cost for any company depends on the following factors:

  • Location of your business: When creating your policy, insurance companies will consider the location of your building and its condition.
  • Your industry or profession: Insurance companies may offer you more coverage at a higher premium if you work in a hazardous industry. If your company operates in a traditional office setting, you may be offered less coverage at a lower premium.
  • The payroll of your business: Your payroll is another critical factor, especially when determining the coverages like your workers’ compensation policy. When your employees are injured, the benefits they receive are determined by their salary. The larger your payroll, the more coverage you may require and the higher your premium.
  • Claims history: Insurance companies may also review your claims history. If your company hasn’t filed many claims in the last few years, insurance companies may view it as lower risk. Insurance companies can then offer you a more affordable policy. However, if your company has made several claims, insurance companies may offer you a more expensive policy because future claims are more significant.

How much does business insurance cost in Arizona?

Your small business insurance policy’s cost (also known as your premium) is determined by various factors. A report from 2019 shows that the average monthly premium for a new professional liability insurance policy in Arizona is $46. The same report showed that the average monthly cost of a workers’ compensation policy was $65 per month.

Different companies will give you different quotes. Be sure to shop around with a few companies to compare several quotes to find the cheapest one for your company.

How to find cheap business insurance companies in Arizona

Having business insurance is necessary to protect your small business from unforeseen accidents and mistakes in Arizona. The good news is that having insurance protection for your business doesn’t need to break your bank account. Below are a few tips to help you save on business insurance in Arizona:

  • Shop and compare several quotes: Comparing several quotes is the only way to make sure you can find the cheapest price for your small business in Arizona. It is advisable to compare at least 3 quotes before making your final decisions.
  • Implement all safety practices and standards for your business operations to reduce the risk it may cause. If your business belongs to any safety associations, make sure to implement the safety guidelines provided by the associations.
  • Provide all necessary safety training to your employees regularly: This will help your employees do their jobs more safely and you may get several discounts from different insurance companies.
  • Maintain your good insurance record: Once you establish a steady good insurance record for your business, your insurance cost may decrease over time. This is especially true for commercial auto insurance.
  • Don’t forget to shop again at the renewal time: Your current policy might be the cheapest when you bought it, but it may not be the cheapest when you need to renew. Don’t renew with the current provider before at least shopping around with another provider to compare quotes.
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