6 Best Commercial Property Insurance in Arizona for 2023

Thang Truong
Thang Truong
Updated on:

If you’re a small business owner in Arizona and own a building or buildings that you conduct business in, lease workspace, or work from home, you likely need commercial property insurance to protect your business location and the things in it. 

This article will explain what you need to know to get adequate business property insurance to protect the structures you conduct business in and the tools, equipment, and other things you store inside them.

6 best commercial property insurance companies in Arizona 

I’ve done the research for you to come up with this list of the 6 best insurers for business property coverage in Arizona.

  • CoverWallet: Best for award-winning coverage
  • Thimble: Best for startups and new businesses
  • Hiscox: Best for business property insurance from an established provider
  • Liberty Mutual: Best for customized coverages in Arizona
  • State Farm: Best for top-tier insurance coverage
  • Nationwide: Best for coverage from a top-rated insurer 

CoverWallet: Best for comparing quotes online

CoverWallet makes it simple for small business owners to learn about, buy, and manage commercial property insurance and other coverage. You can get and compare several quotes from leading insurance companies in a few mins. Below is a quote sample from CoverWallet for your reference. CoverWallet promises to make it simple, convenient, and fast for business owners to get coverage at the right price.

CoverWallet is a part of Aon, a global leader in risk, retirement, and health solutions. CoverWallet Is known for working with small and medium-sized organizations and startups to provide insurance tailored to their unique needs.

CoverWallet has been honored with many awards over the last few years, including:

  • One of The Most Entrepreneurial Companies by Entrepreneur
  • Startup of the Year Stevie Award
  • Top 100 Most Promising Global Startups from CNBC
  • North America Top 100 Winner from Red Herring
  • Global FinTech Innovator from KPMG.

If you want business property coverage from an award-winning insurer, CoverWallet could be a good option for you.

Here is a commercial property insurance quote for a small accounting firm from CoverWallet.

Thimble: Best for startups and new businesses

Thimble promises to make getting commercial property and other business insurance simple. It specializes in coverage for new and very small businesses.

Thimble is known for:

  • Making the insurance buying process simple. It typically asks fewer questions during the insurance buying process than other insurers. You can purchase a policy online, through the Thimble app, or over the phone in minutes.
  • The scalability of its solutions. Thimble is willing to cover small operations and stick with them as they grow and new opportunities emerge.
  • Flexibility. Thimble allows you to choose how you pay. You can upgrade your coverage as your business grows and evolves. You can modify, pause, or cancel coverage when you need to.

If your business is in start-up mode, Thimble could be a good insurer for you to check out.

Please note: Thimble does not allow you to purchase commercial property insurance alone. You can only get it as part of a Business Owners Policy (BOP).

Hiscox: Best for business property insurance from an established provider

More than 400,000 small businesses choose Hiscox for commercial property and other insurance needs. It’s an insurer that exclusively offers coverage for small companies.

Hiscox is known for:

  • Tailored insurance solutions. Hiscox will customize commercial property and other coverage for you.
  • Ease of doing business. Hiscox makes it simple and easy to get quotes. It can provide you with instant insurance coverage and will process claims quickly.
  • Insurance industry experience. Hiscox has been offering insurance coverage since 1901.

If you want commercial property insurance from a solid and established provider, Hiscox could be right for you.

Please note: Hiscox does not allow you to purchase commercial property insurance alone. You can only get it as part of a Business Owners Policy (BOP).

Liberty Mutual: Best for customized insurance in Arizona

Liberty Mutual understands insurance needs are unique to every business. It specializes in customized coverages, including business property insurance, for companies of all sizes in different industries. 

Liberty Mutual can provide coverage for startups, family-owned businesses, mid-sized companies, and Fortune 500 corporations. 

If you’re interested in purchasing coverage from Liberty Mutual, the firm makes it simple to find an agent or broker on its website. 

If you need business property coverage tailored to your organization’s specific needs, Liberty Mutual could be a good option for you. Check with your insurance agent or broker to find out for sure.

State Farm: Best for top-tier insurance coverage

State Farm is the best overall insurance company for small businesses, according to Investopedia.

State Farm is known for:

  • The experience of its agents. The firm’s agents own their businesses. This makes them uniquely able to understand the unique needs of small business owners.
  • Customizable coverage. State Farm offers a wide array of coverage options, including commercial property insurance, that can be bundled together into a single affordable policy.
  • Quality service. State Farm provides 24/7 claims processing, which means your business will be able to quickly get back up and running after an emergency.
  • Experience. The insurer has been in business since 1935.

If you want business property coverage from a top small business insurer, State Farm could be a good option.

Nationwide: Best for coverage from a top-rated insurer 

Nationwide prides itself on delivering extraordinary care to its customers during extraordinary times.

It provides insurance coverage to more than half a million small businesses across the United States. Nationwide offers customized commercial insurance products for small companies and larger ones. 

Nationwide is known for:

  • More than 90 years of experience. Nationwide has been in business since 1926.
  • Friendly and dedicated agents. Nationwide has thousands of agents across the United States who can help you find the right commercial business and other coverage for you and your organization.
  • Strength and stability. The insurer is a Fortune 100 company with an A+ rating from A.M. Best, an A1 from Moody’s, and an A+ from Standard & Poor’s.

If you prefer to get your coverage from a top-rated insurer, Nationwide could be perfect for you.

What is commercial property insurance?

Commercial property insurance, often referred to as business property or business hazard insurance, protects your company’s physical assets against fire, explosion, burst pipes, damage from weather events, theft, and vandalism. 

What does commercial property insurance cover?

Commercial property insurance protects the buildings you do business, your business assets, and the property owned by your company surrounding your business location. This includes:

  • Computers
  • Furniture
  • Equipment
  • Exterior signs
  • Awnings
  • Fences and landscaping
  • Documents and files
  • Inventory
  • Office supplies.

Commercial property insurance covers these assets when they are damaged due to the following causes:

  • A fire damages or destroys your inventory
  • Lightning strikes your building, which causes damage to your computers
  • Someone breaks into your office and steals your equipment.

Think about it: Could you afford to pay to repair or replace these things if they’re damaged or destroyed by a fire or weather event or stolen by thieves? The answer for most businesses is NO, which is why they protect themselves against unexpected events with business property coverage. 

What does commercial property insurance not cover?

Earthquakes, floods, hurricanes, and damage from other extreme events that are relatively likely to happen where a business is located usually aren’t covered by commercial property insurance unless coverage for them is added to the policy. 

How does commercial property insurance protect my business?

Business property insurance covers your company’s real estate and its contents. It helps pay for repair or replacement when business property is lost, damaged, or destroyed.

You need your business assets to run your operation. When you have commercial property insurance, you’ll be able to afford repairs if your business location is harmed or to replace supplies, equipment, or inventory if damaged by a fire or weather event or stolen by thieves.

Am I required to have commercial property insurance in Arizona?

If you rent an office or workspace in Arizona, your landlord will likely require proof of commercial property coverage from you. Lenders typically mandate commercial property insurance on business real estate purchases that they finance.

Though landlords carry property insurance for their buildings, they won’t take responsibility for any business property losses in a space a tenant leases. Lenders require the coverage because they don’t want a business they provide financing to to default because of a costly property loss that puts them out of business.

Even when it’s not required, small businesses that own property should get the coverage. That’s because most cannot pay for expensive losses to a business location or its contents, including things like computers and inventory.

Businesses that purchase a commercial property policy typically:

  • Own or rent a building, store, or office
  • Own or rent equipment or tools
  • Store products or inventory
  • Depend on other valuable business assets.

How much does commercial property insurance cost in Arizona?

The average cost of commercial property insurance in Arizona is $125 a month, or $1,500 a year. Most small businesses in Arizona pays less than $1,000 a year for their commercial property insurance policy. Only 20% of small businesses in Arizona pays more than $2,000 a year.

These are just the averages. Your rates will be very different. Be sure to shop around with a few companies or work with a top digital broker like CoverWallet or commercialinsurance.net to compare several quotes to find the cheapest one for your business.

Learn more about the details of commercial property insurance cost

What factors affect the commercial property insurance cost in Arizona?

How much you pay for commercial property insurance depends on the value of your business property, including your building and assets. 

The risks your business faces also impact your commercial property insurance premiums. These include:

  • Number and value of business properties. Your commercial property insurance premium will be much higher if you own many large and expensive medical clinics than if you rent a small office space for an accounting business.
  • Location of business property. You’ll pay more for coverage if the area your business is located in is prone to storms and other natural disasters, burglaries, and vandalism.
  • Type of construction. You’ll spend less on coverage if your business properties are fireproofed and have new plumbing and electrical systems. Anything that reduces the risk of severe fire damage lowers insurance costs.
  • Type of business. Lower-risk businesses like realtors will pay less for coverage than higher-risk ones like restaurants.
  • Fire and theft protection. If your business has a security system, fire alarms, sprinkler systems, and is close to a fire hydrant and fire station, you’ll pay less for coverage because it’s protected against fire damage, theft, and other losses.
  • Insurance company. Different insurers calculate commercial property insurance premiums in different ways. 

The cost of commercial property coverage can vary dramatically. You owe it to yourself to get quotes from at least three providers to ensure you’re getting the coverage you need at a fair price.

How do I get affordable commercial property insurance in Arizona?

The best way to secure the coverage you need at a price you can afford is to get several quotes from different providers. Insurers have their methods of calculating policy costs, and you may find one that can provide you with the coverage you need at a price you can afford.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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