Arizona
workers’ compensation insurance is a no-fault system that helps cover medical bills and partial lost pay when an employee is injured or becomes sick from their job, regardless of who caused the accident.
Most businesses with one or more employees are required to carry workers’ compensation insurance in Arizona.1
A workers’ comp policy in Arizona can help cover:
- Medical bills for work-related injuries or illnesses
- Partial pay (lost wages) if an employee is unable to work while they recover
- Disability benefits or job retraining for more serious injuries
Who Handles Workers’ Comp Claims and Disputes in Arizona?
The Industrial Commission of Arizona (ICA) handles workers’ comp claims and has two divisions: the Claims Division and the Administrative Law Judge (ALJ) Division.
The Claims Division:3
- Monitors insurance carriers that manage workers’ comp claims
- Helps ensure employees receive benefits under Arizona workers’ compensation laws
- Provides general guidance on the rules for workers’ comp insurance in Arizona (not legal advice)
- The staff in the claims division can answer any questions you may have about workers’ compensation rules.
If a dispute comes up, the case may move to the ALJ Division, which resolves disagreements between employees, employers and insurers, including:4,5
- Whether an injury is covered
- Ongoing benefits
- Supportive care
- Reopening a claim
- Loss of earning capacity
Businesses that don’t carry required Arizona workers’ compensation insurance may face fines or other penalties. Be sure to review Arizona workers’ compensation requirements to understand how these laws apply to your business.
In Arizona, workers’ comp insurance can help cover medical expenses for work-related injuries or illnesses and may provide partial wage replacement while an employee recovers.
Arizona workers’ compensation requirements state you must provide workers’ comp for full-time and part-time workers. However, certain employees do not need workers’ compensation, such as:7
- Independent contractors
- Casual employees whose work is not part of the normal operation of your business
- Domestic employees who work in a private home
Sole proprietors and partners with no employees also have
workers’ comp exemptions, but they can still choose to have it if they want the peace of mind. Any corporate officers at your business may also need workers’ comp coverage.
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How Much Does Arizona Workers’ Comp Insurance Cost?
The cost of workers’ compensation insurance in Arizona varies by business, but The Hartford’s customers in Arizona pay an average of $841 per year, or about $70 per month, for this coverage.**
Your workers’ comp premium depends on several factors, including your industry, payroll and claims history. One key factor is your
workers’ comp class code, which reflects the level of risk associated with your employees’ work.
Class codes are set by the National Council on Compensation Insurance (NCCI) system and help determine how much you might pay for workers’ compensation insurance in Arizona. Higher-risk jobs typically have higher premiums, while lower-risk jobs may cost less to insure.
How Do You Get Proof of Workers’ Compensation Coverage in Arizona?
Proof of coverage is a document that shows your business has the proper workers’ compensation insurance. In Arizona, you can get workers’ comp coverage through a commercial provider, like The Hartford. Self-insurance is also an option, but you must apply for it through the ICA.
Once you get your policy with us, we’ll help you get proof of coverage right away. To learn more,
get a workers' comp quote today. Our specialists and insurance agents are ready to help find the coverage that fits your business.
What Does Workers’ Compensation Cover in Arizona?
Arizona workers’ compensation insurance can help cover:
- Accidents or injuries that happen at work. For example, if your employee sprains their ankle while working, workers’ comp can help pay their medical bills.
- Missed wages if an employee needs time off to recover due to a work-related injury or illness. Payments are typically based on the employee’s average wages.
- Ongoing care for more serious work-related injuries. For example, treatment like surgery or physical therapy may be needed during recovery.
- Illnesses caused by exposure to certain work environments or substances.
- Repetitive stress injuries, like carpal tunnel syndrome from repeated strain during work tasks.
- Funeral expenses and death benefits if an employee dies from a work-related incident.
- Disability benefits if a work-related injury or illness keeps an employee from returning to work right away.
What’s Not Covered by Workers’ Comp Insurance in Arizona?
Workers’ compensation typically doesn’t cover:
- Injuries that are not work-related
- Injuries caused by intoxication or illegal activity
- Intentional, self-inflicted injuries
Since 1925, The Industrial Commission of Arizona has overseen the state’s workers’ comp law.9 The commission sets the Arizona physician fee schedule, which determines the fees medical professionals can charge when treating injured workers. Medical professionals can include physicians, physical therapists or occupational therapists.10
Arizona legislature also recently passed Arizona Revised Statute 23-908, an amendment that sets the fees for prescription medications for injured workers.11
Arizona Workers’ Compensation Claims
Injured workers in Arizona are responsible for filing a workers’ comp claim within one year of their injury, but employees should report workplace injuries as soon as possible.12 Employers must follow Arizona reporting requirements and timelines. This makes it easier to fill out all the documents they’ll need for the claim.
Your employees can file workers’ compensation claims by submitting either:13
- A Worker's and Physician's Report of Injury at the doctor’s office, also known as the 102 or Pink Form
- A Worker's Report of Injury (407) from the ICA
