If you're a licensed contractor in Arizona, general liability insurance is a smart investment—protecting your business from expensive third-party claims and helping you secure contracts. While Arizona doesn't require general liability insurance for a contractor's license, most clients—both commercial and residential—expect proof of coverage before awarding a job. Arizona general liability insurance helps shield your business from claims involving property damage, bodily injury, and legal expenses.
These thresholds are often requested by project owners, general contractors, or municipalities as a condition of doing business.
General Liability Insurance Application
Why Contractors Need Contractor Liability Insurance in Arizona
More clients—including general contractors, municipalities, and homeowners—are asking contractors for proof of liability coverage before work begins. Without contractor liability insurance in Arizona, you could lose out on valuable projects or be held personally responsible for costly accidents.
With CCIS, you'll receive a Certificate of Insurance that you can present to your clients as proof of coverage. Need an "Additional Insured" endorsement for a client? We can add it to your policy at no extra hassle—just let us know.
What Contractor General Liability Insurance in Arizona Covers
Contractor general liability insurance in Arizona protects your business against:
- Bodily Injury – Covers injuries to third parties caused by your operations, including medical costs and legal fees.
- Property Damage – Pays for damage to third-party property resulting from your work.
- Products and Completed Operations – Protects against claims arising after your work is completed, as long as the work was done during the policy period.
- Medical Payments – Covers immediate medical expenses for injuries that happen on the job site (typically up to $5,000).
- Personal and Advertising Injury – Covers claims such as libel, slander, copyright infringement, or false advertising (less common in construction, but included in standard policies).
Typical policy limits:
- $1 million per occurrence
- $2 million aggregate
- $2 million for products/completed operations
Need higher limits? Contractors can purchase excess liability coverage to extend their protection.
Cost of Arizona General Liability Insurance
The price of Arizona contractor liability insurance depends on several factors, such as your trade, payroll, subcontractor expenses, gross receipts, and business location.
To give you a general idea, here are some average policy ranges:
| Payroll Tier | Average Policy Cost* |
|---|---|
| $0 Payroll | $790 - $1,050 |
| $1 - $30k Payroll | $925 - $1,460 |
| $30k - $60k Payroll | $1,062 - $2,118 |
| $60k - $100k Payroll | $1,338 - $2,934 |
| $100k+ Payroll | $1,965 + |
*Prices shown are for a one-year term and based on several factors, including, but not limited to, classification, payroll, subcontractor costs, gross receipts, and location. Rates do not constitute an offer of coverage and are subject to change at any time. Rates may fall outside average ranges shown here due to exceptional risk factors.
Understanding Claims and Policy Types
There are two types of construction liability insurance in Arizona:
- Occurrence-Based: Covers incidents that happen during your policy period, regardless of when the claim is reported.
- Claims-Made: Covers claims only if both the event and the claim filing occur while your policy is active.
Most Arizona contractors choose occurrence-based policies, as they are more widely accepted and provide simpler coverage.
If there's a claim, your insurance company will defend you and pay legal costs and damages up to your policy limit. You're only responsible for your deductible.
What Is a Premium Audit?
When you apply for Arizona contractor general liability insurance, your premium is based on estimated business expenses and payroll. At the end of the policy period, your insurer may conduct a premium audit—reviewing your actual financials to adjust your premium based on your real risk. If your business grows or changes, so will your insurance needs and costs. Audits can happen any time after your policy is bound, especially if a claim is filed.
General Liability Coverage for All Types of Arizona Contractors
No matter your specialty, CCIS helps Arizona contractors secure the right general liability insurance for their trade and risk profile.
We provide tailored Arizona contractor insurance for:
- General Contractors – Residential and commercial
- Electricians
- Plumbers
- Roofers
- HVAC Contractors
- Painters and Drywall Contractors
- Concrete and Masonry Workers
- Landscapers and Tree Service Contractors
- Carpenters and Framers
- Remodelers and Home Improvement Specialists
Each trade faces unique risks—our expert team ensures your policy matches your needs, without unnecessary coverage or extra costs.
Frequently Asked Questions: Arizona Contractor General Liability Insurance
Do I need general liability insurance if I'm a sole proprietor in Arizona?
Can I get coverage fast?
Does general liability insurance cover my employees?
Do I need to have a contractors license to apply for a miscellaneous bond?
CCIS Has Arizona Contractor Liability Insurance You Can Rely On
Whether you're starting your business or renewing your policy, CCIS makes it simple to get the Arizona contractor general liability insurance you need. Call us or request a quote today to protect your business and move forward with confidence.
Get a Quote
