Ariz. Admin. Code § 21-7-128

Current through Register Vol. 31, No. 2, January 10, 2025

Section R21-7-128 - Insurance

A. The licensee shall procure and maintain, at all times, insurance coverage that provides protection against financial loss.

B. The licensee shall carry insurance per the terms of their contract. The following insurance coverages with limits of liability shall not be less than those stated below.

1. Commercial General Liability - Occurrence Form. The policy shall include bodily injury, property damage, personal injury and contractual liability.

a. General Aggregate $2,000,000;

b. Products - Completed Operations Aggregate $1,000,000;

c. Personal and Advertising Injury $1,000,000;

d. Damage to Rented Premises $500,000;

e. Each Occurrence $1,000,000.

2. Business Automobile Liability.

a. The policy shall cover both bodily injury and property damage for any owned, hired, or non-owned vehicles used in the performance of licensee's operations;

b. Combined Single Limit (CSL) $1,000,000.

3. Worker's Compensation and Employers' Liability.

a. Workers' Compensation: Statutory;

b. Employers' Liability, each Accident $1,000,000;

c. Disease:

i. Each Employee $1,000,000;

ii. Policy Limit $1,000,000.

d. This requirement shall not apply separately to a licensee that is exempt under A.R.S. § 23-901.

4. Professional Liability (Errors and Omissions Liability).

a. Each Claim $1,000,000;

b. Annual Aggregate $3,000,000;

c. The policy shall be endorsed to include coverage for sexual abuse and molestation in an amount not less than $500,000. The policy shall include this statement: "Sexual Abuse and Molestation coverage is included."

C. Licensee shall not allow its policies to be suspended, cancelled, materially changed, or to expire without 30 days' prior written notice to the Department.

D. Licensee shall provide the Department with verification of the above insurance coverages.

Ariz. Admin. Code § R21-7-128

New Section made by final rulemaking at 29 A.A.R. 2231, effective 11/6/2023.