FAQ: Workers' Compensation Insurance in Arizona

Arizona workers' compensation insurance helps pay for the medical expenses and lost wages of an employee who is injured or becomes ill due to working. Workers' compensation benefits both the employer and employee.

Every business will have different workers' compensation premiums because it depends on your individual risk factors. Rates are determined within the industry type and job duties, and are set within a range. Check out the rate ranges for a few industries in Arizona, per $100 of employer payroll: 

IndustryLow CostHigh Cost
Auto Service & Repair-Mechanic$1.04$2.07
Auto Body Repair$0.47$0.94
Sales Professional$0.12$0.24
Clerical-Office Employee$0.07$0.14
Retirement Living Centers-Congregate Communities$1.22$2.43

Workers' compensation insurance is required for all employers in Arizona. This means coverage will need to be carried in order to comply with local law or else fines or worse could be administered. 

Arizona workers' compensation pays for the medical expenses and lost wages of an employee who is injured or becomes ill as a result of their job duties. Some of these include the following: 

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Arizona workers' compensation insurance will not usually provide coverage for the following incidents:

  • Intentional injuries or illnesses.
  • Injuries or illnesses sustained outside of work.
  • Injuries or illnesses sustained while committing a crime.
  • Injuries or illnesses sustained under the influence of drugs or alcohol.

Your local independent insurance agent can find a workers' compensation insurance certificate in Arizona. Some companies, individuals, or municipalities that your business works for will require coverage evidence. A certificate will list your policy limits and the expiration dates for them.

You get options when you shop your workers' compensation insurance and other business policies through an independent insurance agent. They work with dozens of top-rated carriers to find the most competitive pricing for your operation. Plus, they do the comparing for free, making it a no-brainer.

Workers' compensation benefits administered to your employees who have filed a claim under your policy are usually not taxable in Arizona. 

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National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Arizona

In Arizona, you must carry the minimum limits or greater of workers' compensation insurance as an employer of any number of employees. The employee has 90 days to notify the employer of an injury or illness due to their job duties. The employee then has up to 1 year to file the claim. If the business owner fails to obtain or maintain workers' compensation insurance, then a penalty or worse could be administered.

Common Workers' Compensation Claims in Arizona

The Top 5 industries with the most fatal injuries, in order:

  1. Construction
  2. Transportation and warehousing
  3. Manufacturing
  4. Crop farming
  5. Landscaping

The Top 7 most reported fatal events are, in order:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires
  4. Falls, slips, trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment
  7. Overexertion and bodily reaction

According to statistical data, 97 workers' comp claims turned fatal in one recent year.