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Workers’ Compensation Insurance in Arizona

Workers' Compensation Insurance in Arizona

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If your business has employees in the state of Arizona, you’ll need to make sure you adhere to Arizona’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Arizona?

Arizona requires all employers who regularly hire at least one employee to obtain Workers’ Compensation Insurance. In Arizona, an “employee” is generally defined as someone who is in the service of an employer that regularly employs at least one worker.

The Arizona Workers’ Compensation Act (WCA) defines all of the requirements for Workers’ Comp in Arizona, and the Industrial Commission of Arizona (ICA) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Arizona?

Almost all workers are covered under Workers’ Compensation in Arizona. If you provide work or services for an employer, you will likely be eligible for Workers’ Compensation Insurance.

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Arizona, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

Temporary Total Disability Benefits

Temporary Partial Disability Benefits

Permanent Partial Disability Benefits

Permanent Total Disability Benefits

Death Benefits

What are the penalties for breaking Arizona Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the WCA can result in significant fines and even imprisonment. In order to avoid any costly penalties, it’s important to consult the WCA or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Purchase Coverage

Intentional Misrepresentation

Unfiled Injury Reports

How much does Workers’ Compensation Insurance cost in Arizona?

According to the National Academy of Social Insurance Workers’ Compensation Report (October 2019), the average employer cost for Workers’ Compensation in Arizona was $0.88 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Arizona?

The claims process in Arizona begins with the employee. If an employee suffers a work-related injury or illness, he or she must immediately report the condition to the employer. The employer then must file a report with the ICA and their insurer within 10 days.

The injured employee needs to fill out a claim form with the ICA within one year of the injury occurring. Any delays beyond one year may forfeit an employee’s right to benefits.

After the ICA receives an employee’s claim form, it will notify the employer of the claim. Within 21 days of this notification, the employer must accept or deny the claim. If the claim is accepted, the employer must begin to pay benefits to the injured employee within 21 days of receiving notice of the claim. Within 30 days of making the first benefit payment, the employer must provide the ICA with information on the employee’s average monthly wage.

Arizona Workers’ Compensation Insurance Resources

For more information on Arizona Workers’ Compensation laws and requirements, please visit the following resources:

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