# Arizona contractor insurance requirements

> What Arizona law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/arizona/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Sole negligence; broader for private

## Workers' comp in Arizona

Any employer that regularly hires workers in its usual business must carry workers' comp, no matter how many, including part-time workers. A sole proprietor with no employees doesn't need to insure only themselves.

Agency: [Industrial Commission of Arizona](https://www.azica.gov/claims-division)

## Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Arizona's Registrar of Contractors requires a license bond. Cities and counties can set their own licensing and insurance rules, so check where the project is.

## Indemnity and additional insured clauses

Arizona has anti-indemnity statutes for public contracts (Ariz. Rev. Stat. §§ 34-226 and 41-2586) and private construction contracts (§§ 32-1159 and 32-1159.01). They void clauses that make a contractor indemnify another party for that party's sole negligence, and the private-contract rules reach further. Some commentators read the statute as also voiding additional insured coverage for the other party's sole negligence.

## What to check on a contractor COI for a Arizona project

1. **Workers' comp.** Nearly every contractor with employees needs it in Arizona. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Arizona is listed on the workers' comp policy.
2. **General liability.** Arizona doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. **Additional insured.** The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. **Dates.** Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

## Common questions

### Do contractors need workers' comp in Arizona?

Any employer that regularly hires workers in its usual business must carry workers' comp, no matter how many, including part-time workers. A sole proprietor with no employees doesn't need to insure only themselves.

### Does Arizona require contractors to carry general liability insurance?

We found no statewide general liability minimum tied to a general contractor license. Arizona's Registrar of Contractors requires a license bond. Cities and counties can set their own licensing and insurance rules, so check where the project is.

### Can a Arizona construction contract make a contractor cover another party's negligence?

Arizona has anti-indemnity statutes for public contracts (Ariz. Rev. Stat. §§ 34-226 and 41-2586) and private construction contracts (§§ 32-1159 and 32-1159.01). They void clauses that make a contractor indemnify another party for that party's sole negligence, and the private-contract rules reach further. Some commentators read the statute as also voiding additional insured coverage for the other party's sole negligence.

## Sources

1. [Workers' compensation FAQs](https://www.azica.gov/sites/default/files/media/FAQs%20version%20updated%205-2020%20%281%29.pdf), Industrial Commission of Arizona, 2020
2. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
3. [Contractual Insurance Requirements and Anti-Indemnity Statutes](https://www.irmi.com/articles/expert-commentary/contractual-insurance-requirements-and-anti-indemnity-statutes), IRMI, 2016
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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