Business Insurance in Tempe, AZ

More than 17,000 businesses are registered in Tempe, Arizona. This city serves as the headquarters of several Fortune 500 companies like Carvana, NortonLifeLock, and Circle K, but most of your businesses in this vibrant Arizona city are small, privately-owned companies.

If you own a company in Tempe, business insurance can protect its financial health if disaster strikes. Independent agents can help you find the best and most affordable products to cover against your company’s various exposures. Find an independent insurance agent near you to learn more.

Is Business Insurance Required in Tempe, AZ?

Business insurance has the potential to save your company from bankruptcy if it is affected by unexpected hardship like a liability lawsuit, a natural disaster, or a forced closure.

You are not required by law to carry a business insurance policy, but there are instances where certain types of business coverage may be necessary. For instance:

• If you have taken out a commercial mortgage, business loan, or business line of credit, your lender will likely require you to carry business insurance until your loan is paid in full.
• If your business has at least one employee, Arizona law requires you to cover them with workers’ compensation insurance.
• If you are a contractor, prospective clients may request that you provide proof of liability insurance and workers’ compensation insurance before hiring you to do a job on their premises.
• If your business owns and operates vehicles, Arizona law requires you to cover them with commercial vehicle insurance.

To learn more about possible coverage requirements, you can consult a local independent insurance agent.

How Much Does Business Insurance Cost in Tempe, AZ?

If you own a small business with limited assets and few liability risks, you can probably get all the coverage you need through a simple business owners policy, or “BOP.” These policies typically cost around $100 a month.

If your business has more complex coverage needs, you will need to purchase a standard business insurance policy and customize it by adding any necessary coverage options. The cost of a business insurance policy package can range from a few hundred to a few thousand dollars a month.

Business insurance companies base their rates on several factors such as:

• The type of business you own and its expected annual revenues
• The number of people you employ and the kinds of jobs they do
• The value of your company’s property and other assets
• Whether your company owns and operates motor vehicles
• Your company’s various liability exposures
• The coverage options you want to include in your business policy package

To determine how much business insurance will cost for your company in Tempe, you can contact a few insurance companies to request customized quotes. Or, if you prefer, an independent agent can do this on your behalf.

Comparison shopping lets you choose the policy that offers the coverage you want at the most competitive cost.

What Does Business Insurance Cover in Tempe, AZ?

Whether you are purchasing a BOP or a standard business insurance policy, there are three types of coverage you can expect to get:

• Business liability insurance: This covers your business against financial losses related to liability lawsuits.
• Commercial property insurance: This covers your business against property loss and damage.
• Business interruption insurance: This covers your business against revenue losses caused by forced temporary closures,

You can build a fully customized business insurance policy package by supplementing your basic coverage with appropriate policies and options.

What Does Small Business Liability Insurance Cover in Tempe, AZ?

Businesses of all sizes can find themselves on the wrong end of a liability lawsuit. The right commercial liability insurance products can cover expenses like legal defense fees, mediation costs, settlements, and judgments if this happens.

At a minimum, all BOPs and business insurance policies include general liability insurance, designed to cover some of the most common liability risks businesses face. It includes:

• Premises liability insurance: This covers third-party injuries and property damage caused by accidents on your business premises.
• Product liability insurance: This covers third-party injuries, illnesses, and property damage caused by products your company produces or sells.
• Advertising liability insurance: This covers against accusations of marketing errors like copyright infringement, false advertising, and deceptive pricing.

General liability insurance covers a lot, but it is not always enough to cover businesses against all of their liability exposures. If needed, an independent agent can help you review other types of liability coverage such as:

• Employment practices liability insurance (EPLI): This covers your business against accusations of harassment, discrimination, wrongful termination, retaliation, and other illegal employment practices.
• Cyber liability insurance: This covers your company’s financial obligations to affected individuals if hackers break into your computer system and access your customers’ or employees’ personal, financial, or other sensitive data or if criminals successfully install skimmers on your credit card readers.
• Professional liability insurance: Sometimes referred to as errors and omissions insurance, this covers your business and the people who work for you against accusations of professional mistakes that resulted in financial losses, injuries, or other harm to your clients.
• Liquor liability insurance: This is important for businesses like bars and restaurants that serve alcoholic beverages. It covers your business if an intoxicated patron goes on to cause injuries or property damage to others, and the injured party names your business in a liability lawsuit.
• Workers’ compensation insurance: This helps your company avoid potential liability lawsuits resulting from employee injuries and occupational illnesses. It covers your injured workers’ medical care, lost wages, and other related expenses.

These are just a few commercial liability insurance products available to business owners in Tempe. A local insurance agent can help you determine which coverage is a good fit for your business.

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What Kinds of Property Coverage Does Business Insurance Offer to Companies in Tempe?

All BOPs and business insurance policies include commercial property insurance, which is designed to pay for repair or replacement costs if your business-owned property is damaged or destroyed in a covered event. Covered hazards include:

• Fires: This includes accidental fires, wildfires, explosions, smoke damage, and damage caused by firefighting efforts.
• Property crimes: This includes crimes like shoplifting, burglary, theft, and vandalism.
• Severe weather events: This includes thunderstorms, windstorms, dust storms, and lightning strikes.

To ensure that your business-owned property is fully protected against all potential risks, you may need to supplement your commercial property insurance with additional policies such as:

• Inland marine insurance: This covers your company’s property when it is located somewhere other than your place of business, such as at a job site or in a warehouse, and while it is being transported over land.
• Flood insurance: Commercial property insurance does not cover flood damage. Fortunately, fewer than 1% of businesses in Tempe are at risk of sustaining this type of damage. If your business is among them, you can protect it with a commercial flood insurance policy.
• Earthquake insurance: Tempe has a moderate risk of earthquakes. The US Geological Survey estimates a 7.94% chance this city will experience an earthquake of magnitude 5.0 or greater within the next 50 years. Commercial insurance does not cover damage caused by seismic events, so some business owners in Tempe may want to consider purchasing an earthquake insurance policy.

Local independent insurance agents are familiar with the risks you face as a business owner in Tempe and can match you up with suitable policies to cover against them.

How Does Business Interruption Insurance Protect Companies in Tempe?

If your business sustains significant damage caused by a covered event like a windstorm or structure fire, it may need to remain closed for several days or weeks while repairs are made. This is an example of when business interruption insurance can come to the rescue.

Business interruption insurance is a standard part of every BOP and business insurance policy. It is designed to provide your company with the funds needed to continue paying regular expenses like payroll, taxes, loan payments, and rent until the damage is repaired and you can resume normal operations.

What Insurance Products Can Small Businesses Include in Their Employee Benefits Packages?

Offering good employee benefits can give your business a competitive edge when trying to recruit and retain some of the area’s best and most talented workers.

Local independent agents can help you find suitable and reasonably priced products to include in your employee benefits package, including things like:

• Group health insurance plans
• Group life insurance plans
• Simplified employee pension plans

Your agent can also help by ensuring that the health insurance coverage you choose is accepted by a wide range of local doctors and medical facilities like Tempe St. Luke’s and Dignity Health.

What Are the Best Business Insurance Companies in Tempe, Arizona?

The best business insurance companies in Arizona are the ones that have a proven track record of providing exceptional customer service, reliable coverage, and competitive prices.

Local independent insurance agents have teamed up with some of the top insurance providers servicing the Tempe area. This means you can rest assured that any policies your agent recommends to you are coming from dependable providers.

How Can an Independent Insurance Agent in Tempe Help Me Find the Best Coverage?

Independent insurance agents can perform a complete risk assessment of your business to help ensure that you do not have any unintentional gaps in your coverage. These agents are free to work with multiple insurance companies to find the policies you want at the most competitive rates.

Arrange an obligation-free consultation with an independent insurance agent near you to get more information and to start comparing customized business insurance quotes.