The state requires a Registrar of Contractors license bond, not liability insurance. The bond protects your customers, and you must repay any claim paid from it. General liability insurance protects your business, and most commercial contracts and project owners require it anyway.
FAQ_category: (HIDDEN) Industry FAQs
General liability insurance with $1 million in coverage usually costs between $20 and $50 per month for small businesses in Arizona. Higher-risk industries, prior claims, or larger payrolls can push premiums above that range. A Business Owner’s Policy can add property coverage for a modest additional cost.
Arizona requires workers’ compensation once you hire your first employee and 25/50/15 liability coverage on business vehicles. General liability insurance is not required by state law in most cases, but landlords, clients, and contracts often require proof of coverage before you can work.
There is no single best policy for every owner. Many companies begin with general liability or a business owner’s policy, then add workers’ compensation, commercial auto, professional liability, cyber, inland marine, umbrella, or specialized coverage. The best plan matches your work, property, employees, contracts, and interruption risks.
An LLC does not automatically need every type of insurance, but forming one does not replace coverage. An LLC with employees generally needs workers’ compensation. It may also need general liability, property, professional liability, commercial auto, cyber, or other policies based on its operations. Qualifying LLC members with at least 10 percent ownership may exclude themselves from workers’ compensation while employees remain covered.