Fast-read guide for general contractors and trade contractors working in Tempe, Arizona.

What’s Changing for 2025 Policies?

General liability (GL): Arizona small-business GL averages about $42 /month, but construction firms pay closer to $121 /month on a bundled BOP.
Builders-risk deductibles climbed roughly 20 % on wood-frame jobs after a spike in statewide fire losses.
Workers’ comp: Class codes for framing, roofing, and concrete saw modest +4 % rate filings for tax year 2025.

Why Are Premiums Rising Faster Than Materials Costs?

Claim severity: Recent Maricopa County verdicts topping $5 million have pushed carrier loss ratios above 70 %.
Reinsurance shock: Global treaties for construction liability renewed at +10 % in January 2025.
OSHA spotlight: A May 2025 enforcement program targets firms with high injury rates—fines raise the “management” portion of GL pricing.
Heat-rule prep costs: OSHA’s pending Heat Illness Standard prompts carriers to factor in work-stoppage and citation risk.

Roofers & framers—highest injury frequency; GL surcharges run about +15 % versus plumbers or electricians.
Start-ups & one-person LLCs without prior coverage history.
GCs using uninsured subs; carriers either exclude “action-over” claims or bill extra premium for subcontractor cost.

Policy audits: Confirm payroll and gross receipts—overstated numbers mean overpaid premium.
Safety credits: A written heat-stress plan, AI dashcams, and weekly toolbox talks can earn up to 10 % GL credit.
Wrap-ups for small projects: A $2–5 million OCIP can cost less than stacking individual subcontractor policies.
Bundled BOP: Packaging GL with tools and property in one policy often trims 5-10 % versus stand-alone coverage.

90–120 days before renewal—gives underwriters time to review loss runs.
Mid-project change orders: If your contract value jumps 25 % or more, alert your broker to avoid audit surprises.
After major safety upgrades (e.g., new fall-protection system)—submit proof for an immediate mid-term credit.

Raise deductibles smartly: Moving GL from $1 k → $2.5 k often trims 6-8 % while keeping court-fee protection.
Add completed operations limits only when the owner’s wrap doesn’t already cover them.
Vet every subcontractor: Require equal or higher GL limits—carrier audits flag uninsured subs and bill you for their exposure.
Document safety culture: Heat-illness logs, fall-protection training, and signed job-safety analyses all justify additional credits.

Plan for another high-single-digit GL increase at 2025 renewal unless you tighten loss controls now.
Heat-stress compliance will be the next big rating factor—have a written plan in place before OSHA finalizes the rule.
Shop early, verify audits, and bundle smart to keep insurance from eroding margins on 2025 bids.

Need a no-obligation audit? Contact Inszone’s Tempe Construction team for a coverage review before your next bid.