Contractors Insurance in Arizona

With a land mass of almost 114,000 square miles which includes the Grand Canyon, Arizona was the last of the contiguous states to join the union in 1912. Since that time, Arizona has become home to almost 7 million people and now supports every type of contractor imaginable.

Arizona’s contractor licensing board requires all contractors who enter into any contract that exceeds $1,000 or that requires a permit to be licensed by the state. Arizona contractors are required to post a surety or cash bond with a face amount that is predicated on the size of the job. The state licensing board also requires a workers’ compensation policy to be in place if the contractor has one or more employees. We encourage all contractors who are plan to do business in the State of Arizona to contact the Arizona Registrar of Contractors for licensing information.

Here is What We Recommend:

General Liability

Your contractors general liability policy lays the foundation for well-planned business insurance
portfolio. Your general liability will cover your business for various different contractor’s risks:

  • Business liability resulting from claims for bodily injury or property damage from third parties.
  • Contractual Liability – often times contractors enter in contractual agreements with other contractors and must indemnify their business
  • Products Completed Operations – If your business manufactures of installs products for
    customers, you could be held liable for actions that result from products and their installation.
  • Legal Costs – Every legal action filed against your company must be responded to and defended. Here is where your general liability insurance is invaluable.

Workers' Comp

Arizona is considered an NCCI State when it comes to workers’ compensation. This means that classes and rates are set by the National Council on Compensation Insurance. The state of Arizona requires all contractors with at least one employee to carry workers’ compensation and enforces substantial fines for businesses who neglect this rule. Your workers’ compensation protects your business and your employees. Employees are covered for injuries and illnesses that are work related and cannot file claims against their employer if a workers’ compensation policy is in force.

Commercial Auto

Arizona contractors that use vehicles for commercial purposes should only depend on commercial auto insurance to cover their liability for injuries or property damage and repair or replace their vehicles in the event of an accident or theft. Contractors that rely on personal auto insurance will likely find that coverage will not be available if the vehicle is regularly used for commercial purposes.

Tool Coverage

Your tools and equipment are not covered under your business property or commercial auto policy
while in transport, in storage, or at the jobsite. Fairbanks Insurance Brokers provides affordable toll and equipment coverage using Inland Marine Insurance coverage.

Surety Bonds

Like the state of Arizona, most states require contractors to post a surety bond protecting the state before a license will be issued. Also, many large customers and government agencies will require a bid bond before they will even review your company’s bid for a project.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.


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