Verified insurance requirements for general contractors operating in Arizona.
Arizona does not require GL insurance by state law. The ROC does not require GL as a condition of contractor licensure (with the exception of WC). However, most project owners and GCs require GL contractually.
Minimum Coverage
$500,000 - $1,000,000
Estimated Annual Cost
$500 - $2,000/year
Arizona requires workers' compensation for ALL employers with one or more employees (A.R.S. Section 23-901 et seq.). Administered by the Industrial Commission of Arizona (ICA). Corporations and LLCs employing one or more employees (beyond exempt officers) must carry WC. Single-officer corporations or 50/50 ownership LLCs with no employees may be exempt. The Arizona Registrar of Contractors (ROC) verifies WC compliance as part of licensure.
Minimum Coverage
Statutory limits
Estimated Annual Cost
$1,000 - $5,000/year
The Arizona Registrar of Contractors (ROC) requires a license bond for all licensed contractors. Bond amounts range from $4,250 to $100,000 depending on license classification and anticipated annual gross volume. Residential contractors must additionally either pay into the Recovery Fund or post a second bond of $200,000. Bonds must be continuous (no termination date) and issued by a surety authorized in Arizona.
Minimum Coverage
$4,250-$100,000 (based on classification and annual gross volume)
Estimated Annual Cost
$100 - $500/year
Required for business vehicles. Arizona auto minimums: 25/50/15 ($25K per person, $50K per accident bodily injury, $15K property damage) or $65K combined single limit.
Minimum Coverage
25/50/15 ($25K per person, $50K per accident bodily injury, $15K property damage) or $65K combined single limit
Estimated Annual Cost
$1,200 - $3,000/year
Provides additional coverage beyond your general liability and auto policy limits. Recommended for larger projects.
Minimum Coverage
$1,000,000+
Estimated Annual Cost
$300 - $1,000/year
$2,800 - $10,000/year
Varies based on your revenue, number of employees, claims history, and specific coverage limits.
Insurance requirements and costs vary by insurer, your business specifics, and local regulations. Always consult with a licensed insurance agent for quotes specific to your situation. This guide is informational only.