NEXT tops our analysis of Arizona business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in Arizona
NEXT tops our Arizona business insurance rankings with a MoneyGeek score of 4.63 out of 5.
Find affordable coverage that protects your small business in Arizona below.
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Updated: August 18, 2025
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Key Takeaways
NEXT, The Hartford and Simply Business offer the best business insurance in Arizona based on MoneyGeek's analysis.
The best business insurance in Arizona depends on your industry risks, number of employees and desired coverage amounts.
To find the right coverage, evaluate your business risks, get multiple quotes, check provider service ratings and maximize available discounts.
Best Business Insurance Companies in Arizona
| NEXT | 4.63 | 3 | 1 | 2 |
| The Hartford | 4.61 | 1 | 2 | 3 |
| Simply Business | 4.49 | 2 | 5 | 1 |
| Nationwide | 4.47 | 5 | 2 | 4 |
| Coverdash | 4.41 | 4 | 6 | 2 |
| biBERK | 4.38 | 7 | 2 | 5 |
| Thimble | 4.34 | 1 | 8 | 5 |
| Progressive Commercial | 4.33 | 2 | 7 | 5 |
| Hiscox | 4.26 | 6 | 4 | 6 |
| Chubb | 4.26 | 8 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
The Hartford offers Arizona's best general liability coverage and business owner's policies (BOP). NEXT provides superior coverage options for professional liability insurance and workers' compensation.
| Business Owners Policy | The Hartford | 4.65 |
| General Liability | The Hartford | 4.59 |
| Professional Liability (E&O) | NEXT | 4.73 |
| Workers Compensation | NEXT | 4.62 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Arizona Small Business Insurance Reviews
Our research identified the top three business insurance providers in Arizona for small business owners. Looking for comprehensive coverage? Here's what sets each company apart.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$83This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5.0Ranked #4 nationallyOur Survey: Likely to Be Recommended to Others
4.8/5.0Ranked #1 nationally
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$86This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5The Hartford ranks #1 nationally for claims process satisfactionOur Survey: Likely to Be Recommended to Others
4.5/5The Hartford ranks #2 nationally for customer recommendations
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$91This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$68This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in Arizona
The Hartford provides the most affordable business insurance in Arizona at $84 monthly ($1,006 annually). NEXT and Thimble round out the top three budget-friendly options, with rates of $85 and $89 per month respectively. You can compare all providers and their rates in the table below.
| The Hartford | $84 | $1,006 |
| NEXT | $85 | $1,023 |
| Thimble | $89 | $1,073 |
| Simply Business | $92 | $1,102 |
| Progressive Commercial | $94 | $1,130 |
| Coverdash | $96 | $1,152 |
| Nationwide | $96 | $1,156 |
| biBERK | $100 | $1,196 |
| Hiscox | $103 | $1,235 |
| Chubb | $111 | $1,336 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Arizona
NEXT offers the cheapest general liability coverage in Arizona at $83 per month. The Hartford comes second at $86 monthly. Compare all provider rates in the table below.
| NEXT | $83 | $1,000 |
| The Hartford | $86 | $1,027 |
| Simply Business | $91 | $1,093 |
| Nationwide | $92 | $1,108 |
| Progressive Commercial | $95 | $1,142 |
| Coverdash | $98 | $1,181 |
| Thimble | $102 | $1,226 |
| Hiscox | $109 | $1,304 |
| biBERK | $109 | $1,305 |
| Chubb | $113 | $1,357 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Arizona
NEXT offers the most affordable professional liability insurance (E&O) at $66 monthly ($797 annually). The Hartford provides another budget-friendly option for Arizona business coverage.
| NEXT | $66 | $797 |
| The Hartford | $68 | $813 |
| Progressive Commercial | $72 | $861 |
| Thimble | $72 | $867 |
| Simply Business | $73 | $872 |
| Coverdash | $74 | $883 |
| Hiscox | $74 | $888 |
| biBERK | $75 | $904 |
| Nationwide | $78 | $940 |
| Chubb | $84 | $1,012 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Arizona
The Hartford offers the cheapest workers' comp rates in Arizona at $65 monthly ($776 annually). NEXT and Thimble provide similarly competitive rates, making all three solid choices for affordable business coverage.
| The Hartford | $65 | $776 |
| NEXT | $65 | $784 |
| Thimble | $67 | $804 |
| Progressive Commercial | $67 | $807 |
| Simply Business | $68 | $813 |
| Hiscox | $68 | $818 |
| Coverdash | $69 | $830 |
| biBERK | $71 | $857 |
| Nationwide | $77 | $921 |
| Chubb | $81 | $967 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Arizona
Thimble offers the cheapest BOP rates in Arizona, with an average monthly cost of $116 ($1,395 annually). The Hartford, NEXT and Simply Business also provide affordable BOP insurance options in the state.
| Thimble | $116 | $1,395 |
| The Hartford | $117 | $1,409 |
| NEXT | $126 | $1,510 |
| Simply Business | $136 | $1,628 |
| Nationwide | $138 | $1,655 |
| Progressive Commercial | $143 | $1,711 |
| Coverdash | $143 | $1,714 |
| biBERK | $143 | $1,717 |
| Hiscox | $161 | $1,929 |
| Chubb | $167 | $2,007 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Arizona?
Business insurance in Arizona costs between $70 and $139 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $139 |
| General Liability | $98 |
| Professional Liability (E&O) | $74 |
| Workers Comp | $70 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in Arizona vary widely based on industry and coverage types. Speech therapists pay just $6 monthly for workers' compensation, while pressure washing businesses pay $1,253 monthly for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $31 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Several key factors influence your Arizona business insurance premiums. Here's what affects your costs:
Industry Risk Level
Your business type drives your insurance costs more than any other factor. Construction companies pay substantially more than consultants because construction sites have higher accident rates. A construction contractor might pay $500 monthly for coverage, while a business consultant often pays under $50.
Geographic Location
Your location in Arizona affects your rates based on local risks. While Arizona faces fewer natural disasters than coastal states, businesses still deal with extreme heat, monsoons and flash floods. Urban areas like Phoenix typically see higher rates due to increased theft and vandalism risks, while rural businesses may pay more due to limited emergency services.
Business Size
Your employee count and revenue directly impact your rates. Workers' compensation costs $1 to $3 per $100 in payroll, while general liability rates increase with your customer traffic and sales volume. A solo home-based business might pay $300 yearly, but a retail store with 15 employees could pay that much monthly.
Claims History
Your claims record follows your business for years and shapes your rates. Even one liability claim can increase premiums across multiple coverage types. Insurance companies reward claim-free businesses with lower rates, while those with multiple claims face higher costs and fewer coverage options.
Coverage Types and Limits
Your coverage choices directly affect your premium costs. Higher coverage limits increase rates, but bundling options like business owner's policies can reduce overall costs. Adding specialized coverage for Arizona's unique risks, like equipment breakdown from heat exposure, impacts your total premium.
Years in Business
New businesses pay more because insurers lack data to assess their risk level. After operating claim-free for three to five years, your rates often decrease as insurers gain confidence in your business practices and safety record.
Professional Certifications
Safety certifications and professional licenses can lower your insurance costs, especially in high-risk industries. OSHA certifications and industry-specific training programs show insurers you prioritize safety. Many Arizona insurers offer 5% to 15% discounts for documented safety programs.
Arizona Business Insurance Buying Guide
Running a business takes focus, and getting business insurance shouldn't distract you from your goals. Our straightforward guide walks you through business insurance requirements in Arizona, helping you make confident coverage decisions.
What Coverage Is Required?
We've researched all Arizona business insurance requirements so you don't have to. Check out our detailed breakdown of state regulations below.
Workers' Comp
Required for any business with one or more employees, including part-time workers and family members. Arizona has no small business exemptions, making compliance mandatory from your first hire.
Arizona's workers' compensation law is stricter than most states. Skipping coverage isn't just expensive, it's a Class 6 felony with potential prison time up to two years and fines up to $10,000. Other penalties include business shutdown, $1,000 to $10,000 in civil fines and personal liability for all employee injury costs plus 10% penalties. Average cost is $46 per month.
Commercial Auto Insurance
All business vehicles must carry minimum liability coverage of 25/50/15. Arizona increased these requirements in 2020, making them higher than many neighboring states.
This means $25,000 for bodily injury per person, $50,000 for total bodily injury per accident and $15,000 for property damage. Passenger transport vehicles need $250,000 per incident coverage. Personal auto policies exclude business use, so you need separate commercial coverage for any work-related driving, including employees using personal vehicles for business errands.
Contractor Bonds
All contractors performing work over $1,000 must be licensed and bonded. Bond amounts range from $2,500 to $100,000 based on annual revenue and license type.
Arizona requires continuous bonds with no expiration date. Residential contractors need additional $200,000 consumer protection bonds. Bond costs range from 0.5% to 10% annually based on credit score. Workers' compensation is also mandatory for licensed contractors. You can't get a license without proof of coverage. Handymen working under $1,000 per job are exempt.
Sales Tax Bonds
New businesses operating in Arizona for less than one year must obtain sales tax bonds for two years. Bond amounts are set at $2,000 or $7,000 depending on business type.
These bonds guarantee payment of transaction privilege taxes to the state and local governments. The Arizona Department of Revenue determines your specific bond amount based on your business activities and expected tax liability. This requirement catches many new business owners off guard since most states don't require tax bonds.
Specialized Licensing Insurance
Various licensed professionals must carry specific insurance to maintain their licenses, though Arizona doesn't require general liability insurance for most contractors.
Real estate professionals, financial advisors and other licensed service providers often need errors and omissions insurance. Unlike many states, Arizona doesn't mandate general liability insurance for contractors, but most jobs and commercial leases require it anyway.
What Coverage Do We Recommend?
Arizona keeps business insurance requirements minimal, leaving you responsible for protecting your company properly. We've analyzed the best coverage options for the state's leading industries:
Tech/IT | Professional liability (E&O), cyber liability, general liability, commercial property, equipment coverage, business interruption, directors & officers (D&O) | Arizona's tech corridor faces data center cooling failures from extreme heat, cyber attacks and client disputes over software performance. Power grid stress during summer peaks can disrupt operations and cause equipment damage. |
Construction/Contractor | General liability, workers' compensation, commercial auto, equipment coverage, builder's risk, heat-related illness coverage, flash flood protection, dust storm coverage | Arizona construction faces extreme heat dangers, flash flooding risks and dust storm equipment damage. Desert construction projects have elevated worker safety risks from heat exhaustion and limited water access in remote locations. |
Excavation | General liability, environmental liability, workers' compensation, equipment coverage, dust control liability, utility damage coverage, flash flood coverage | Arizona excavation operations face flash flooding risks during monsoon season, underground utility damage and dust control requirements. Desert soil conditions create specialized equipment challenges and environmental compliance issues. |
HVAC | General liability, professional liability, commercial auto, tools and equipment, workers' compensation, heat-related emergency coverage, equipment breakdown | HVAC contractors in Arizona face extreme demand during 120°F+ summers with life-threatening consequences for service failures. Emergency repairs during peak heat create high liability exposure and increased worker safety risks. |
Retail | General liability, commercial property, business interruption, HVAC equipment coverage, cyber liability, commercial crime, slip and fall coverage | Arizona retailers face massive cooling costs and HVAC system failures that can force closures during peak summer months. Power grid stress and rolling blackouts create business interruption risks and inventory spoilage concerns. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, extreme heat equipment protection, tire blowout coverage, dust storm coverage | Arizona trucking companies face tire blowouts from extreme heat, dust storm visibility hazards and cargo spoilage from cooling system failures. Desert highways create higher accident risks and longer emergency response times. |
How to Get the Best Cheap Business Insurance in Arizona
Getting business insurance coverage in Arizona can strain your budget and time when managing a small company. Here's how to secure reliable protection while keeping costs manageable through these practical money-saving steps:
- 1
Assess Your Actual Risks First
Start by evaluating real business risks rather than accepting blanket recommendations. A Phoenix restaurant needs strong liability and property coverage, while a Tucson web designer might focus more on professional liability and cyber protection.
- 2
Get Quotes from Multiple Insurers
Insurance costs vary significantly between providers in Arizona. Contact at least three insurance companies to compare rates and coverage options. Local agents often understand Arizona business requirements better than national call centers.
- 3
Choose Providers Based on Service Quality
Investigate each insurer's financial strength and claims handling reputation in Arizona. A Scottsdale retail store needs quick response times for property damage, while a Mesa contractor requires an insurer familiar with construction liability.
- 4
Maximize Every Discount
Many Arizona insurers offer multi-policy discounts and safety program credits. A small retail shop can save by bundling property and liability coverage, while implementing security systems can reduce premiums further.
- 5
Review Coverage Annually
Business needs change with growth and market conditions. An expanding Flagstaff tour company might need additional vehicle coverage, while a growing Phoenix manufacturer could require increased property insurance limits.
Arizona Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are Arizona's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in Arizona: FAQ
Arizona business owners may have many questions about finding the right insurance coverage, so we address the most common concerns below.
What business insurance is required by law in Arizona?
Arizona law requires commercial auto insurance with minimum limits of 25/50/15 if you use vehicles for business. Workers' compensation insurance is mandatory for businesses with employees. Contractors must carry surety bonds.
How much does business insurance cost in Arizona?
Business insurance costs in Arizona range from $70 to $139 monthly, depending on coverage. Workers' comp is the most affordable at $70, while business owner's policies run $139. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Arizona?
The Hartford offers the lowest rates at $84 monthly in Arizona, with NEXT ($85) and Thimble ($89) following behind. Compare multiple quotes since rates vary by business risk factors.
What business insurance do I need for my small business in Arizona?
Start with general liability insurance to protect against customer injuries and property damage. Add workers' compensation for employees and commercial auto for company vehicles. Professional service providers need E&O coverage, while retailers need property insurance.
What is the best business insurance company in Arizona?
NEXT leads Arizona's business insurance market with a MoneyGeek score of 4.63/5.0. The Hartford and Simply Business follow as excellent alternatives. Consider comparing multiple insurance providers to find coverage that matches your business requirements.
Do small businesses in Arizona need workers' compensation insurance?
Arizona requires workers' compensation for businesses with one or more employees. While technically optional for sole proprietors, most small business owners purchase coverage to protect against costly injury claims.
What factors affect business insurance costs in Arizona?
Industry type impacts costs, with construction businesses paying higher premiums than consulting firms. Location within Arizona affects rates, particularly in areas prone to natural disasters. Company size and claims history also influence premiums.
How do I get cheap business insurance in Arizona?
Compare quotes from multiple insurers like NEXT and The Hartford, which offer competitive rates in Arizona. Bundle policies, implement safety programs and assess your exact coverage needs to maximize savings.
What's the difference between general liability and errors and omissions (professional liability) insurance in Arizona?
General liability insurance protects against physical incidents like customer injuries or property damage. Professional liability (E&O) covers service-related mistakes, including missed deadlines or incorrect professional advice.
Can I get business insurance quotes online in Arizona?
Yes, our top providers offer online quotes for Arizona businesses. Simple operations can get instant quotes, while complex businesses may need agent assistance for specialized coverage.
How We Scored the Best Business Insurance Companies in Arizona
Small business owners in Arizona need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Arizona entrepreneurs navigate challenges like extreme weather risks and the state's business insurance requirements.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We analyzed premium costs across multiple coverage types, industries and risk levels to find insurers offering competitive rates without sacrificing protection.
- Customer experience (30% of score): Our evaluation included claims processing speed, customer service availability and digital tools that save business owners time.
- Coverage options (15% of score): We rated insurers on policy customization options, industry-specific endorsements and flexibility in coverage limits.
- Financial strength (5% of score): We reviewed AM Best ratings and other financial metrics to ensure recommended insurers can reliably pay claims.
This approach helps Arizona small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "NEXT Empowers Agents with Enhanced Products, Cutting-Edge Digital Tools, Opening New Revenue Opportunities and Sparking Momentum in Small Business Insurance." Accessed July 25, 2025.
- Simply Business. "Simply Business Offers Insurance to Third-Party Sellers Through Amazon Insurance Accelerator." Accessed August 18, 2025.
- The Hartford. "Customer Claims Ratings and Reviews." Accessed August 18, 2025.
- Trustpilot. "NEXT." Accessed August 18, 2025.
- Trustpilot. "Simply Business US." Accessed August 18, 2025.
- Trustpilot. "The Hartford." Accessed August 18, 2025.