Reviewed by Lee Benson, licensed Arizona broker. Updated October 26, 2026.
Which requirements come from law, and which come from a contract?
Start by separating the source of each requirement. Arizona employment, vehicle and licensing laws can impose specific obligations. Leases, lenders and customers can add different limits or endorsements. A requirement is not a coverage description: compare the actual policy terms with the work and the signed agreement, rather than treating a certificate as approval.
| Source | What to review | What it does not establish |
|---|---|---|
| Employment rules | Workers’ compensation eligibility and required coverage | That every owner or contractor is automatically excluded |
| Vehicle and motor-carrier rules | Vehicle use, weight, seating, cargo and operating authority | That one minimum applies to every business vehicle |
| Trade licensing | License classification and required bonds | That a license bond replaces liability insurance |
| Lease, loan or customer contract | Limits, additional insured wording and evidence requirements | That every requested term is available from an insurer |
For formation-specific questions, see insurance for a new Arizona LLC. Start your business insurance intake with your operations and any written requirements.
When does Arizona require workers’ compensation?
Most employers with regularly employed workers need to review Arizona’s workers’ compensation requirements before work begins. Employee classification, working-owner status and statutory exceptions matter; calling someone a contractor does not settle the question. Describe who works for the business and how the work is controlled, then confirm the required coverage and any valid elections.
Primary sources: A.R.S. §23-902, employers and exceptions, and §23-961, securing compensation. For policy questions, visit workers’ compensation insurance.
Which Arizona motor-carrier limits should I check?
The table below summarizes selected rules in A.R.S. §28-4033 for operations subject to that article. It is not a universal commercial-auto schedule. Vehicle weight, seating and use matter; hazardous cargo, interstate authority and other vehicle-for-hire provisions can change the analysis. Confirm the applicable category and any higher contract requirements before choosing limits.
| Operation under §28-4033 | Combined single liability limit | Uninsured motorist requirement in that section |
|---|---|---|
| Nonhazardous property, gross vehicle weight 20,001–26,000 lb | $300,000 | Not stated in the property-transport subsection |
| Nonhazardous property, gross vehicle weight over 26,000 lb | $750,000 | Not stated in the property-transport subsection |
| Passenger vehicle, more than 8 but fewer than 16 seats including driver | $750,000 | At least $300,000 |
| Passenger vehicle, capacity 16 passengers or more | $5 million | At least $300,000 |
| Passenger vehicle, no more than 8 seats including driver | $250,000 with at least $250,000 UM, or the applicable §28-4038/§28-4039 alternative | Depends on the applicable statutory option |
Source: A.R.S. §28-4033. Exceptions and alternatives remain part of the law. See commercial auto insurance and share the actual vehicles, use and authority details rather than selecting a limit from this table alone.
What bonds and contract insurance should I review?
An Arizona contractor’s license bond is separate from insurance for the business’s own operations. The required bond amount depends on the license classification and contemplated work volume. A lease or customer may separately request liability coverage, endorsements or higher limits. Review the licensing requirement and the complete insurance clause together before assuming one document satisfies both.
The Arizona Registrar of Contractors’ bond information is the primary reference for license bonds. Our Arizona contractor guide explains the distinction. For leases, compare certificate holder and additional insured requirements.
What should I gather for an insurance review?
Gather the facts that determine the applicable obligations: who does the work, what is sold or transported, where the business operates and which contracts apply. Add employee and owner details, vehicle information and property responsibilities where relevant. These documents let a broker identify questions for underwriting; submitting them does not itself arrange or bind coverage.
- Business activities, locations, projected revenue and payroll.
- Employee roles, contractor arrangements and working-owner information.
- Vehicle weights, seating, cargo, operating radius and any authority numbers.
- License details, leases, lender or customer requirements, and prior insurance/loss information.
Start insurance intake. Availability, price and coverage depend on underwriting and the policy issued. Ask the relevant regulator or legal adviser about obligations beyond the insurance review.