Workers' Compensation Insurance Requirements In Arizona

Workers' Compensation Insurance Requirements In Arizona

November 30, 2022
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Business owners wonder if different types of insurance are truly necessary for their specific business. There are so many rules and regulations it can be hard to keep track. Since insurance is our business, we are excited to share all the details about workers' compensation insurance requirements in Arizona, and it all starts with a simple question. Do you have employees? If you have any employees at all, your company will be required to carry workers' compensation insurance. Let’s dive in to learn all the details. The good news is, it is all pretty simple and clearcut. 

What Is Workers' Compensation Insurance?

Workers' compensation insurance is more typically known as “workers' comp”. It is the insurance that companies carry to cover any workplace injuries that impact an employee.  It provides wages and medical benefits to an injured employee who was hurt while on the job.

Does Arizona Require Workers' Compensation Insurance?

Arizona, like most states, requires businesses to carry workers' compensation insurance if they have any employees on the payroll. Here’s some important things to know:

  • Even very small companies that have even a single employee must carry workers’’ comp. 
  • This requirement includes both full-time and part-time employees.
  • It is not required for a sole proprietor to carry it for themselves.  Every business is different, so you should discuss with your agent whether it makes sense for you.
  • It is a really simple process to acquire worker’s compensation through reputable agencies, like ours.
  • It is affordable, typically coming in under a dollar per $100 of payroll.
  • It provides excellent peace of mind to be free from complaints and lawsuits.

Are Businesses Required to Provide Work Comp for Independent ContractorsIn Arizona?

You are not required by law to carry worker’s compensation insurance for independent contractors  in Arizona. However, employers are not the ones who determine whether someone is an independent contractor.  The Arizona Industrial Commission and state of Arizona courts have the ultimate say.  Therefore, even if you think you have an independent contractor relationship and don’t provide work comp, you may be forced to provide work comp by the courts.  Check with your agent to see whether they think work comp should be provided for specific independent contractors.

Typical Costs for Workers Comp Insurance in Arizona

The cost for workers’ compensation is based on a number of factors including:

  1. Nature of work (risk assessment)
  2. Payroll
  3. Claims history
  4. Coverage choices

We can help with all that. Reach out here for a quote!

So, as you can see, it really is pretty simple and clearcut, but there are a few nuances and we can help you figure out what will work best for your company. No matter what size of business you run, we can help you get the ideal insurance portfolio to suit your needs. Please call us at 480-398-8297 to get a quote on your workers' comp insurance right away.