Arizona Contractor Insurance

In Arizona, there are 511, 828 small businesses. About 45,557 of them are in the construction industry. Arizona’s economy grew at a slower rate than the US in 2013, since its real gross state product increased by 1.1 percent compared to 2.2 percent for the U.S. gross domestic product. (Source: BEA). Despite this, there’s still a chance for you to grow your business in this state, and having the right Arizona contractor insurance is a good start. If you are not sure what kind of coverage you need, take a look at this overview so you know how business insurance can protect you. Then you should get a quote for an Arizona contractor insurance policy that suits your business.

Contractor License Requirements in Arizona

Elevate your Arizona projects with the reliability of Arizona contractor insurance. Specially crafted for residential and commercial contractors, Arizona contractor insurance provides comprehensive coverage against unforeseen accidents and damages. From unexpected mishaps to property issues, Arizona contractor insurance ensures your projects remain secure. With this coverage in place, you can confidently handle construction endeavors, knowing you're protected. Safeguard your work, mitigate risks, and proceed with confidence through the reassurance of Arizona contractor insurance.

License Types

  • General Commercial Contractor License: Needed for commercial projects.
  • General Residential Contractor License: Required for residential projects.
  • Dual License: Allows work on both commercial and residential projects.

Residential and Commercial

  • General Commercial Contractor License for commercial projects.
  • General Residential Contractor License for residential projects.
  • Dual License covers both commercial and residential work.

Insurance Emphasis

  • All licensed contractors must hold general liability insurance.
  • Liability insurance safeguards contractors and clients from potential accidents or damages during construction.

Arizona Contractors Need The Following Insurance

Coverage for Third Party (General Liability) : You need general liability insurance in case one of your customers or their property is harmed in any way at your business location. For example, if a customer trips and breaks a bone while visiting a construction site, general liability will pay for the medical treatment. This portion of your Arizona contractor insurance will also protect you if your products or services are faulty in some way or even injure a customer.

Tools & Equipment Coverage

Considering how important tools are in the construction industry, having insurance coverage for them is crucial. Electricians, plumbers, carpenters, and any other artisan contractors need tools and equipment coverage that extends to both purchased and rented items. This makes sure that they can replace them quickly in case they are ever stolen, lost, or damaged.

Employee Coverage (Workers Compensation)

No matter how many or how few people you employ, you are required to have workers compensation insurance for them. This coverage is meant to protect both you and your employees in case they get hurt or ill on the job. This part of your Arizona contractor insurance is multifaceted, featuring a few types of coverage. But mostly it pays for any injured or sick employees’ medical bills, lost wages, and any legal fees you might incur if they file a lawsuit. In this way, it protects everyone involved with your business.

Business Auto Insurance

If you ever drive while conducting business, you need to include business vehicle insurance as part of your Arizona contractor insurance. This is because your personal auto insurance policy will not pay for any damage you cause when you get into a car accident while driving for business. This means you could have to pay for the damages out of pocket. If you require your employees to drive for your company, you should protect your business by making sure they are all covered with your business vehicle insurance policy, too.


The point of a surety bond is to guarantee your services. This means you as a contractor in Arizona will fulfill any obligations that you have agreed to when it comes to your customers. Essentially, a surety bond demonstrates your credibility, which can benefit your contracting company’s reputation as a whole.