Find the Best Workers' Compensation Insurance Options in Arizona
There are more than 571,000 small business owners in Arizona. Every business located in Arizona needs to be equipped with workers' compensation insurance in order to get reimbursed for lost wages and medical expenses if an employee gets injured or ill because of their job. Workers' comp is often mandatory for most businesses in the US. In Arizona, workers' comp is mandatory for businesses with one or more employees, with only a few exceptions.
Luckily, an independent insurance agent in Arizona can help you find the right workers' comp policy for your business. They know exactly how much coverage to include in your policy based on your specific business, its operations, etc. First, though, here's an overview of Arizona workers' comp requirements and more.
Arizona Workers' Compensation Laws
Arizona workers' compensation requirements can vary depending on the industry a business is in. However, the majority of businesses in Arizona with at least one employee must have workers' compensation insurance by state law. Businesses with no employees often aren't required to carry coverage. This goes for sole proprietors and others in this category.
How Does Workers' Compensation Insurance Work in Arizona?
Arizona workers' compensation insurance can offer payout benefits for expenses after a business employee gets ill or injured due to the job environment or work tasks. For an incident to be covered, it can be due to an unsafe job environment, repeated work tasks, or the equipment or materials used on the job. Arizona workers' comp can also replace a portion of an employee's regular wages or salary if they need to be out of work after the incident. Workers' comp can reimburse a business for many different expenses, including the costs of labs, prescription medications, and doctor's or hospital visits.
Having workers' comp as a part of an Arizona business insurance policy exempts your company from employee lawsuits related to covered incidents. Family members of any affected employees are also exempt from suing the business for these incidents. Having workers' comp insurance in Arizona can greatly protect your team of workers and your business in general from possible financial losses that might otherwise be substantial.
Arizona Workers' Compensation Exemptions
Arizona has several exemptions to its state workers' comp laws. Knowing these exemptions is helpful for business owners. Arizona workers' comp exemptions include the following types of workers and industries:
- Sole proprietors with no employees
- Domestic private home workers
- Casual workers
- Independent contractors
An Arizona independent insurance agent can help determine if your business is required by state law to have workers' comp, and if so, how much coverage is necessary.
Do Independent Contractors Need Workers’ Comp Coverage?
Independent contractors in Arizona don't need to be covered by workers' comp according to state law. However, independent contractors in Arizona may still choose to get this coverage. Having workers' comp is especially handy if the nature of your work is risky.
Many Arizona independent contractors still opt to get protected by a workers' comp policy. Though independent contractors in Arizona don't have to worry about workers' comp requirements or possible resulting penalties from not having coverage, they still understand the risk of not having coverage at all and that it can be greater than the cost of having a policy. Not having coverage could possibly result in you having to pay for medical treatments due to work injuries and illnesses on your own dime.
Do Arizona Business Owners Need to Be Covered by Workers’ Compensation?
In a couple of specific cases, Arizona business owners don't need to be covered by workers' comp. These include sole proprietors with zero employees. State law does not require these business owners to have workers' comp in Arizona.
However, choosing to have workers' comp coverage can help you save potentially thousands of dollars or more. Since just one workplace incident could result in the need for pricey medical treatment and lost time from work, you may still want to get coverage to stay protected. Without workers' comp, you could have to pay these costs out of your own pocket, which could result in a huge loss for your business.
What Does Arizona Workers' Compensation Cover?
Arizona workers' comp offers reimbursement to a business's workers for many of the possible costs related to covered incidents of employee injuries or illnesses. Expenses that can be reimbursed include doctor's visits, hospital stays, medications, treatments, etc. In addition, workers' comp can pay to replace a portion of an affected employee's regular wages while they're out of work due to the covered incident. There are several different expenses that can result from just one employee's injury or illness.
Arizona workers' comp can also provide reimbursement for funeral costs if a serious incident results in an employee's death. Further, having coverage exempts a business from employee lawsuits for covered incidents. An affected employee's family members also cannot sue the business either if workers' comp was available. Overall, having workers' comp is a great way to help safeguard your business against serious incidents in a number of ways.
Here's a larger summary of what workers' comp covers in Arizona:
- Death benefits: Workers' comp can also help pay death benefits for employees who die due to a covered incident. The death benefits are most often paid to an employee's surviving dependent family members or spouse.
- Funeral costs: Workers' comp can even help cover funeral costs for deceased employees due to a covered incident. Reimbursement can apply to burial costs, coffins, and more.
- Medical expenses: Workers' comp can help pay for medical expenses after covered incidents, including prescription medications. For example, if an employee needs a prescription for chronic pain due to their job tasks, workers' comp can pay for it.
- Disability benefits: Workers' comp can also help pay for disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, workers' comp can help cover these costs.
- Time off during recovery: Workers' comp can help pay to replace some of an employee's wages while they take time off work to recover from a covered incident. For example, if an employee needs to stay at the hospital for two weeks after surgery due to a workplace incident, workers' comp can help continue some of the wages they would've made working during that time.
- Ongoing care: Workers' comp can help pay for required ongoing care costs to continue treating a covered injury or illness. For example, if a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.
An Arizona independent insurance agent can help you review your policy's coverage in full so you can find out exactly what's covered.
How Much Does Workers’ Compensation Insurance Cost in Arizona?
The average cost of workers' compensation insurance in Arizona is $39 per month or $468 per year. However, the cost of workers' comp insurance can vary based on a number of factors. The exact number of employees your business has and its annual payroll heavily influence the cost of your workers' comp policy.
The location and your company's industry can also influence your workers' comp costs. Some industries have an inherently higher risk level, including those in the trucking industry and the construction industry, so insurance carriers charge higher premiums for coverage in these industries. Also, your business's prior claims history and the limits applied to coverage influence the cost of your workers' comp.