Workers’ Comp Insurance in Arizona

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Are you a new business owner interested in buying worker’s comp in Arizona? Do you have an existing business and need to purchase insurance? A legal requirement for your business, having worker’s compensation insurance should be a top priority for your business. Most major insurance companies that offer business insurance policies also offer a worker’s comp insurance, but you need to be certain that the state of Arizona licenses the insurance

Under Arizona law, it is mandatory for employers to secure workers’ compensation insurance for their employees.” – The Industrial Commission of Arizona

Why You Need Worker’s Comp Insurance

Not only does worker’s compensation insurance protect your employees, but it also protects you from paying hefty medical fees if an employee is injured on the job. You may think that is only necessary for industrial warehouses, construction companies or restaurants, but an office needs it too since there are hazards in a common office, such as a paper cutter, metal desks with sharp corners and slippery floors.

“Workers’ compensation is a “no fault” system in which injured workers receive medical and compensation benefits no matter who causes the job-related accident.” – The Industrial Commission of Arizona

In Arizona, worker’s comp is considered a “no fault” insurance, meaning that an injured employee will receive medical help and/or monetary compensation for the injury regardless of who caused the accident. For businesses in Arizona, the Industrial Commission regulates and oversees worker’s comp insurance.

Buying workers’ compensation in Arizona

When you are buying worker’s comp in Arizona, you need to be make sure that the insurance company is licensed for the state in order to meet the legal requirement to carry it. The Industrial Commission of Arizona has a link that will help you find our if the insurance carrier is licensed in Arizona.

Where to buy insurance?

Most major insurance companies carry worker’s compensation insurance. You can also find a reputable insurance agent in Arizona who can help you purchase the right plan for business. You can call the Arizona Department of Insurance fore information on who you can purchase insurance from at 1-800-325-2548.

Is your business required to carry?

All businesses in the state of Arizona are required to have worker’s compensation insurance, even if you only have one employee or if the employee is part time or full time. If your business meets the requirements for self-insurance you can apply with The Industrial Commission of Arizona for the ability to do so.

If you are an independent contractor or a self-employed individual, the state of Arizona does not require you to obtain worker’s comp insurance. If you are a sole proprietor, you have the choice to carry worker’s compensation insurance, but once you hire an employee, you are required by law to carry it.

For a business that hire’s independent contractors (or someone working on a 1099 and not a W-2), you are not required to carry it for that instance. Do note, however, that courts could say that someone hired as an independent contractor could be an employee if they meet certain criteria (who sets the hours, how the person is paid, who supplies the equipment).

How Much Does Worker’s Comp Insurance Cost?

Worker’s Compensation Insurance can be expensive depending on the type of business you are operating. It is best to shop around for the best rate for you. Typically, the rates are any where from $1.92 per employee per policy period to $22 per employee per policy period. The more dangerous the job, such as with construction workers, the higher the rate will be.

What Is the Cost of Not Getting Worker’s Comp Insurance?

If an employee is injured at work, and you do not have the proper insurance, there are several adverse events that can occur. First, the state can fine you a penalty of $1,000 even if the employee never files for insurance. A second occurrence will result in a fine of $5,000, and third occurrence in five years will result in a $10,000 fine. In addition, the state could shut down your business.

Legal Requirements for Your Business

Per state requirements, there are posters that you must display on the premise. These posters will give employees information on worker’s compensation insurance as well as give them basic directions on where to go in the event of the injury. Information should include, the insurance company that covers your business, the medical office and doctor that the employee should seek medical treatment from when injured.

Employees should also be informed that they have the ability to reject the workers compensation insurance and use their own medical insurance and doctor instead.

Get More Information on Worker’s Compensation Insurance

For more Information, please visit the following links:

Protect Your Business and Employees

Whether you are a new or established business, it is important for you to carry the right worker’s compensation insurance that is required by Arizona law. This insurance will protect both your business and your employees in case of an on-the-job injury. Certain companies may be eligible to self-insure, but you will not be able to do so without approval by The Industrial Commission of Arizona. If you need more information, please visit The Industrial Commission of Arizona’s website.