Get the right commercial insurance for your Phoenix business
Which insurance policies are recommended for Phoenix businesses?
In Arizona and the Greater Phoenix area, small businesses are the backbone of the economy. Protect your small Phoenix business with these common insurance products.
General liability insurance
A general liability policy protects Phoenix businesses from lawsuits related to customer accidents, defamation, and copyright infringement. Commercial leases often require this coverage.
- Customer accidents at your business
- Libel and other advertising injuries
- Product liability insurance
Professional liability insurance
This policy covers legal costs related to mistakes and oversights, such as a consultant's advice that leads to financial loss. It's also called errors and omissions insurance (E&O).
- Mistakes that cause financial loss
- Accusations of professional negligence
- Missed deadlines
Cyber insurance
Cyber liability insurance covers the costs of data breaches and cyberattacks. Every Phoenix business that handles credit cards or other personal information should carry this coverage.
- Customer notification costs
- Fraud monitoring services
- Data breach investigations
Business owner’s policy
A BOP bundles general liability coverage and business property insurance together at a discount. It's the policy most often recommended for small businesses in Phoenix.
- Customer injuries
- Damaged business property
- Business interruption coverage
Workers’ compensation insurance
All Phoenix businesses with employees are required to carry workers' comp. It also covers work-related medical bills for sole proprietors, which personal health insurance may not cover.
- Medical bills from employee injuries
- Disability benefits
- Workplace injury lawsuits
Commercial auto insurance
All vehicles owned by Phoenix businesses must be covered by commercial auto insurance. This policy covers auto accident injuries and property damage.
- Medical bills from an accident
- Property damage caused by your vehicle
- Auto accident lawsuits
Errors and omissions insurance
Consultants and professional services in Phoenix carry E&O coverage to protect against legal costs from clients harmed by your advice or services. It's sometimes called professional liability insurance.
- Errors and oversights
- Late or incomplete work
- Negligence accusations
Commercial property insurance
This policy covers the cost of repair or replacement of your building's physical structure and its contents. Bundle it with general liability coverage in a BOP for a discount.
- Storm damage
- Fires
- Theft and vandalism
Commercial umbrella insurance
An umbrella policy provides coverage once the limit is reached on your underlying general liability insurance, commercial auto insurance, or employer's liability insurance.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
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Which business insurance policies are required in Phoenix?
State and local laws can determine the type of insurance you need. These policies help you comply with Arizona business insurance requirements, as well as protect your business operations.
Workers' compensation insurance
Arizona state law requires all businesses with employees to carry workers’ compensation insurance. This includes full-time and part-time employees for public and private companies.
Phoenix businesses must either purchase a policy through an insurance company or get permission to self-insure their company.
Workers' comp pays for medical expenses from job-related injuries and illnesses, such as a cleaning company employee becoming ill from cleaner fumes. It also provides disability benefits to injured Phoenix workers.
Commercial auto insurance
Arizona small businesses, from Phoenix and Tempe to Scottsdale and Tucson, are required by state law to carry commercial auto insurance for all vehicles that are owned by a business. This auto policy pays for medical costs, legal fees, and property damage after an auto accident.
Phoenix businesses must meet the state's requirements for auto liability coverage, which are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Keep in mind that this is the minimum you're required to carry. It's worth considering higher limits, given the potential cost of a lawsuit. Trucking companies also may need more coverage to comply with regulations.
If you need business insurance coverage for a personal, rented, or leased vehicle, you may want to consider hired and non-owned auto insurance (HNOA) instead.
How much does business liability insurance cost in Phoenix?
Small businesses in Phoenix don't have to pay a lot for commercial insurance. Here are a few average costs for Arizona businesses, based on policy data from Insureon customers:
General liability: $45 per month
Workers' comp: $59 per month
Professional liability/E&O: $91 per month
Business insurance costs depend on factors such as:
- Type of business
- Business operations
- Number of employees
- Policy limits and deductibles
- Claims history
Top professions we insure
FAQs about Phoenix business insurance
Review answers to frequently asked questions about Phoenix insurance.
How do I get a certificate of insurance for my business?
Sometimes you need to get insured quickly to sign a contract or other agreement. With Insureon, you can get same-day insurance in three easy steps:
- Fill out our easy online application to get quotes from top-rated insurance carriers.
- Choose the insurance option that suits your coverage needs and pay for it online.
- Download a certificate of insurance by logging into your account.
Our licensed insurance agents will help you get the right types of coverage for your small Phoenix business that match your risks and insurance needs. Most businesses can get their certificate of insurance within a few hours of applying for quotes.
Can my business be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
Arizona's data breach laws require Phoenix businesses to notify any residents whose personal information is exposed in a data breach. Your business could also end up paying for a data breach investigation, a PR campaign, and other costs related to a breach or cyberattack.
Cyber insurance covers these costs and provides resources so you can get back to business fast.
Does my industry affect Phoenix insurance requirements?
Yes, the city of Phoenix may have special requirements for business insurance and bonds, depending on the type of work you do. There are a few requirements for businesses operating in Phoenix, including having the appropriate business license and permits, or city approval.
Here are a few examples of businesses with additional obligations:
- Contractors and some handymen often need commercial general liability insurance for contractors or a surety bond to sign a contract or bid on a project. Having the right insurance and bonds helps you comply with state licensing requirements.
- Home inspectors in Arizona must meet several criteria to achieve certification, including having errors and omissions coverage and a surety bond.
- Cannabis businesses in Arizona aren't required to carry cannabis insurance to operate legally. However, coverage is strongly recommended to keep your business protected.
When running a business in Phoenix, you need to be aware of laws and regulations for Arizona, Maricopa County, and the city of Phoenix.
How can I get help starting a small business in Phoenix?
Phoenix continues to climb the national rankings for small business job growth, coming in as one of the fastest growing cities. To help you get started, here's a list of local organizations that offer guidance and resources:
- The Phoenix Public Library offers several resources for starting a small business in Phoenix.
- The Greater Phoenix Chamber enables networking opportunities and support for small businesses. Additionally, there are six more chambers supporting the Phoenix area, including the Arizona Chamber of Commerce & Industry, Arizona Hispanic Chamber of Commerce, Ahwatukee Foothills Chamber of Commerce, Black Chamber of Arizona, and Arizona Asian Chamber of Commerce.
- Maricopa County equips small business owners and entrepreneurs with tools and guidance to start, grow, and build a business in Maricopa County and Phoenix.
- Arizona Small Business Development Center (AZSBDC) works to help launch, grow, and sustain small businesses in Arizona. This network consists of AZSBDC and the Arizona APEX Accelerator, which helps businesses seeking federal, state, and local contracting opportunities.
- SCORE Greater Phoenix provides free business advice and training, with support from experienced entrepreneurs from diverse industries and specialties.
- The State of Arizona offers several business resources for starting and growing a business in Arizona.
- The Arizona Small Business Association (ASBA) is a nonprofit 501(c)(6) membership organization that serves as the nonpartisan advocate and resource hub for all Arizona small businesses.
- The Arizona Commerce Authority delivers information on licensing and statewide resources, as well as supports Arizona's small, minority, women-owned, and disadvantaged business enterprises.
Keep in mind that many lenders will require you to first obtain several types of business insurance, which is yet another reason to insure your investment.
How can I save money on Phoenix business insurance?
Small business owners can save money on insurance by comparing quotes from different insurance agencies. With Insureon, you can get free quotes from top-rated providers by filling out one easy application.
There are a few other ways to save, such as:
- Bundle policies for a discount. The most popular option is a business owner's policy.
- Choose less expensive policy options, such as lower limits or a higher deductible.
- Focus on workplace safety. Fewer accidents means fewer claims, which helps keep your premium low.
Learn more about how to find cheap business insurance.