If so, you’re not alone. Many Arizona contractors feel overwhelmed by the maze of policies, legal jargon, and gaps in coverage that can lead to costly surprises.
I’m Kody Houk, founder of Prime Risk Insurance, and we’ve helped over 650 Arizona contractors protect what they’ve built—without wasting money on unnecessary policies.
In this article, you’ll discover the 4 essential insurance policies every Arizona contractor should carry, how they work together, and how to avoid common coverage gaps that could expose your business.
Even one uncovered claim could sink your business.
Running a contracting business means risk—from workplace injuries and vehicle accidents to lawsuits and property damage. Insurance isn’t just a legal checkbox. It’s a financial lifeline.
Whether you’re a general contractor, roofer, plumber, or electrician, the right policies do more than meet minimum state requirements—they protect your income, your team, and your ability to keep working.
This is the foundation of any contractor’s insurance plan.
General liability protects your business if you accidentally injure someone or damage property while working. Many job bids require proof of this policy before work can begin.
Typical coverage includes:
Average general liability claims exceed $75,000 in legal and settlement costs. One oversight can break your budget.
If you have employees, this policy isn’t optional—it’s the law.
Workers’ compensation ensures your team gets medical care and wage replacement after an on-the-job injury—and protects you from lawsuits.
It covers:
Even sole proprietors in Arizona can opt in for coverage—talk to a broker to see if that’s right for your setup.
Personal auto insurance won’t cover your business vehicles.
If you use a truck, van, or trailer for work, you need a separate commercial auto policy. Arizona law and most insurers exclude business use from personal coverage.
Coverage includes:
Protects your reputation and income from advice gone wrong.
If you design, consult, manage projects, or advise clients—this is for you. Professional liability covers mistakes that don’t result in physical damage but still hurt your client financially.
It includes protection for:
Example: A contractor designs a drainage system that floods later. No broken pipes—but major financial damage. That’s where E&O kicks in.
Think of these coverages as your core safety net:
Together, they give your business credibility, legal protection, and peace of mind—so you can focus on building.
Depending on your work scope, you might need more. Here are smart add-ons:
A knowledgeable broker will help you tailor the right mix.
Your broker isn’t just your policy vendor—they’re your insurance translator.
Look for someone who:
At Prime Risk Insurance, we’ve helped hundreds of contractors get the right coverage without overpaying. We’ll show you what’s required, what’s smart, and what’s just fluff.
Q1: Is workers’ compensation mandatory in Arizona?
Yes—for most employers. Even if you have just one employee, it’s likely required.
Q2: What isn’t covered under general liability insurance?
Q3: Can I use my personal auto policy for work vehicles?
No. Most personal policies exclude business use. You need commercial auto insurance.
Q4: How is professional liability different from general liability?
General liability = physical accidents
Professional liability = financial harm due to advice, mistakes, or delays
Q5: How do I get a free review of my insurance?
You can schedule a free consultation with Prime Risk Insurance. We’ll help you spot gaps and optimize your policies.
You’ve worked too hard to leave your future exposed.
At the end of the day, every contractor in Arizona faces legal requirements and real-world risks. Now that you know the 4 core policies and how they work together, your next step is simple: Get your free policy review.
We’ll help you avoid the gaps that put your business—and livelihood—at risk.
I’m Kody Houk, and my team at Prime Risk Insurance is here to help you build something that lasts—on a foundation that protects.