Arizona workers' compensation insurance: Your ultimate guide
Everything to know about workers’ compensation for
Arizona
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Arizona
's workers' comp laws?
In the Grand Canyon State, Arizona's workers' compensation laws are designed to protect both employees and employers in the event of workplace injuries or illnesses.
Our detailed breakdown of Arizona workers’ compensation insurance and its laws will help you navigate and understand policies and rules more easily.
If you’re a business owner in Arizona, it’s crucial to protect yourself, your business and your employees with workers’ compensation insurance.
What is workers' compensation?
Workers’ compensation insurance is designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Its primary purpose is to ensure that employees receive compensation for work-related injuries or illnesses without filing a lawsuit against their employer, and it helps to ensure a safe and swift path to recovery.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of the employer and their business.
Arizona workers' compensation laws
Mandatory Coverage
Arizona mandates that nearly all employers, regardless of size, provide workers' compensation insurance coverage.
This broad coverage requirement encompasses a wide range of employers, from small businesses to large corporations.
Some exemptions apply to domestic & casual workers, partners in a partnership, or certain LLC members and Independent contractors, if they meet specific legal definitions.
To ascertain your obligations as an employer or your eligibility as an employee, take a look at the Industrial Commission of Arizona (ICA) or seek legal counsel.
Arizona workers’ comp no-fault system
Arizona operates within the framework of a no-fault workers' compensation system. This means that employees do not bear the burden of proving employer negligence or fault in the event of a workplace injury.
Instead, employees are generally entitled to benefits if their injury or illness is job-related and occurred during the course of employment.
The penalties for failing to provide workers' compensation in Arizona could be significant.
The ICA can impose fines ranging from $1,000 to $10,000, depending on the severity and recurrence of violations.
But that's not all—the ICA can also take matters to court, seeking an injunction that could effectively shut down a seriously noncompliant employer's business. It's a powerful reminder of the importance of adhering to Arizona’s workers' compensation regulations.
Who is covered and exempt from
Arizona
workers' comp?
Who is covered?
Workers' compensation in Arizona covers employees who sustain work-related injuries or illnesses while performing their duties. This coverage includes medical treatment, wage replacement, and related benefits to support injured workers during their recovery.
Who’s exempt from workers’ compensation?
Exemptions from workers’ compensation in Arizona may include, for example:
1. Independent contractors
2. Domestic home workers
Benefits provided
Workers' compensation benefits are typically provided in exchange for injured employees waiving their right to sue their employer for negligence in most cases.
This trade-off is a fundamental aspect of the workers' compensation system, ensuring that employees receive timely benefits for workplace injuries while providing employers with some protection.
Arizona’s workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Permanent disability
These benefits cover:
- Work-related accidents, injuries and/or illnesses
- Missed wages resulting from time away from work for recovery
- Ongoing care costs for work-related injuries or illnesses
- Funeral costs for fatal work-related illness or accidents
- Permanent disability benefits
Arizona workers’ compensation cost
Several factors influence the cost of workers' compensation insurance in Arizona:
- Industry: Different industries have varying risk levels, affecting your premium.
- Payroll: The size of your payroll impacts your premium – more employees, higher cost.
- Claims history: Your past claims history can sway the cost – a clean track record can save you money.
- Safety measures: Implementing safety measures can actually lower your premium, making it a win-win for your team and your budget.
How much does workers’ comp cost in
Arizona
?
How do you file a workers’ compensation claim in
Arizona
?
Arizona’s workers’ comp claims process
In the event of a work-related injury or illness, employees must promptly notify their employer and seek medical attention.
According to the Industrial Commission of Arizona’s website, employees and employers should take the following steps when suffering a work-related injury or illness.
- Inform employer promptly
- Within 10 days of receiving notice of the injury, employers must submit an Employer Report of Injury form.
- Within a year, the injured worker must file a claim.
- Partner notification. Your workers’ compensation insurance partner has 21 days to accept or deny the claim.
Lost-time wages are paid at 66 ⅔% of your established average monthly wage. The average monthly wage is usually calculated on your earnings during the 30 days before your injury, although there are other methods for calculating the average monthly wage.
The maximum monthly wage for wage loss benefits in Arizona can be found here.
How to get workers' compensation
Insurance requirements for employers
The vast majority of employers in Arizona must carry workers' compensation insurance or qualify for self-insurance, depending on their size and industry. Compliance with these requirements is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before deciding.
Covering your business and employees with a trusted insurance partner—like EverPeak—brings peace of mind so you can focus on your bottom line.
FAQs
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Reach out to our customer service team directly at 833.929.0523, or fill out our contact form, and we’ll point you in the right direction.
Workers' compensation can cover staff injuries that happen on the job, including incidents involving patients, depending on the circumstances and your policy's terms.
Many general contractors, property owners or permitting offices require proof of insurance — often a certificate of insurance — before work begins. Confirm with the requesting party what's required for your specific job.
In many cases, yes — general contractors often require subcontractors to carry their own coverage before starting work. Requirements vary by project and state, so confirm with your contractor and an agent.
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Work-related injuries or illnesses should be reported immediately or within a few days of occurrence. State statutes typically set strict deadlines—for example, Georgia law (O.C.G.A. § 34-9-80) requires notice within 30 days of the accident. Prompt reporting ensures timely medical care and protects your right to benefits.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in
Arizona
with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.
Arizona
workers’ comp resources
Employer Report of Injury form
Worker’s Report of Injury form
Industrial Commission of Arizona Workers’ Compensation FAQs
Customer Care
Learn more about workers’ compensation in your state
Learn more about specific workers' comp insurance requirements and local compliance guidelines in your state.