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Workers' Compensation in Arizona | Pie Insurance

If you’re a small business owner in Arizona, chances are you’ll need workers’ comp insurance to protect your employees. Here’s what you should know.
Workers' Compensation in Arizona | Pie Insurance

Arizona workers’ comp 101

If you’re a small business owner in Arizona, chances are you’ll need workers’ comp insurance to protect your employees.

We know running a small business can be demanding, so we’ve boiled Arizona’s workers’ comp requirements to the basics.

10 things you need to know about workers’ comp insurance in Arizona

  1. In Arizona, workers’ comp is regulated by The Industrial Commission of Arizona (ICA).
  2. Arizona law requires all public and private employers who employ one or more full- or part-time workers to provide workers’ comp coverage for their employees.
  3. Workers’ comp insurance isn’t required for independent contractors or workers whose employment is “casual and not in the usual business of the employer.”
  4. Workers’ comp insurance can be purchased from an insurance company licensed in Arizona. For a list of approved vendors, contact the Arizona Department of Insurance at (800) 325-2548.
  5. Once workers’ comp coverage is secured, employers in Arizona must post a public notice of coverage in the workplace.
  6. It’s the employee’s responsibility to report an injury to his or her supervisor or employer as soon as possible. However, Arizona workers have one year from the date of injury or when they learned that a medical condition was job-related to file a claim.
  7. If an illness or injury occurs, Arizona small business owners must report the incident to their insurance carriers and the ICA using an Employers’ Report of Injury form within 10 days of learning about the incident.
  8. If your business is self-insured, you may be able to choose which doctor or facility will examine and treat an injured worker.
  9. If you don’t have workers’ comp coverage for your Arizona small business, you may be fined $1,000 in civil penalties for failure to obtain coverage, even if no employees file claims. The penalty increases to $5,000 if you’re caught uninsured a second time in five years, and $10,000 for a third instance in five years.
  10. Lastly, not carrying workers’ comp insurance is a Class 6 felony in Arizona. If convicted, an employer may be sentenced to up to a year in jail.

Laws change, and every business situation is different, so be sure to consult your workers’ comp agent and/or legal counsel to confirm your business is meeting the requirements.

Pie Insurance is proud to be a licensed provider of workers’ compensation insurance in Arizona. If navigating Arizona’s workers’ compensation rules seems confusing, we can help! We’ve taken the guesswork out of the insurance process, and we’re passionate about providing affordable workers’ comp insurance for small businesses across the country.

Remember, every situation is different and state workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.