Arizona Workers Compensation Insurance: Quotes from $33/mo

Employers in the private sector of Arizona report a nonfatal workplace injury rate of 2.8 per 100 full-time workers. Arizona requires all private and public companies with employees to have a worker’s compensation insurance policy to help injured employees. Do you want to know the specifics of Arizona workers compensation insurance? This article will examine different aspects of Arizona workers compensation insurance, like benefit payments, waiting periods, and the maximum average monthly wage.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance protects your workers from occupational illness or injury costs. This policy pays for most medical treatments and expenses employees must pay to recover fully. If an employee must miss work or cannot work due to an injury, this policy pays them supplemental income. Workers’ compensation insurance sometimes includes employer’s liability coverage. This coverage protects you if an employee sues you for a workplace injury or illness. It will help you pay any legal judgments and fees you incur defending yourself and your business.


When Do You Need Workers’ Compensation Insurance in Arizona?

Your business will likely need to satisfy Arizona workers compensation requirements Most businesses need a workers’ compensation insurance policy to be allowed to operate with employees. This includes both private and public businesses and applies to full-time and part-time employees. You can purchase workers’ compensation insurance from a private insurer to whom you will submit claims. 

Workers can file a claim with a First Report of Injury Form. As an employer, you can also file a form with the insurance company in case of a workplace injury. The insurance company will decide whether to approve or deny the claim. If a claim is rejected, the employee can request a hearing with the state of Arizona regarding the case. 

Worker’s compensation rules are governed by laws found in Article 18 of the Arizona State Constitution. These laws establish a no-fault system for coverage. This means that no matter who is at fault for the job-related injury, the injured employee is entitled to medical, job retraining, and disability benefits. However, there are a few exemptions for your employees gaining benefits. One exemption is intentional injury. If the employee intentionally inflicted the injury on themselves, insurance would not cover this.


What Government Agency Oversees Arizona Workers’ Compensation?

The primary government agency responsible for workers’ compensation in Arizona is the Industrial Commission of Arizona (ICA). Sometimes, the ICA is referred to as the Arizona Workers Compensation Commission or the Industrial Commission of Arizona Workers’ Compensation. 

Their main office is located in Phoenix, Arizona. On the Arizona workers compensation website, they provide basic information on the rights of employees and employers for workers’ compensation. You can also find the worker report of injury form, request of hearing form, employer report of injury form, and other forms part of the workers’ compensation insurance system.

Another agency partly responsible for Arizona’s worker’s compensation is the Arizona Division of Risk Management. They are primarily responsible for facilitating the reporting of hazardous workplace environments or situations that will potentially lead to injury. They staff employees who can take calls at their employee injury call center. Their employees are registered nurses who specialize in various occupational injuries or illnesses that will help your employees get the proper medical treatment.


What Benefits are Available in Arizona Workers’ Compensation Insurance?

Under workmans comp AZ laws, your employee and possibly dependents are entitled to various benefit payments to compensate them for their workplace injury or illness. These benefits are calculated based on the employee’s average monthly wage, paid bi-weekly or monthly, depending on the benefit. 

There is a maximum amount of benefits your employees can earn, which changes over time. Currently, the maximum average monthly wage is $5,397.37. These maximums have been instituted in Arizona since 1948. Below is a comparison of different monthly wage maximums in the state over time:

Monthly Wage Maximum Injury Starting Date Last Possible Date of Injury
$5,397.37 January 1, 2023 December 31, 2023
$5,161.12 January 1, 2022 December 31, 2022
$5,030.33 January 1, 2021 December 31, 2021
$4,888.56 January 1, 2020 December 31, 2020
$4,741.57 January 1, 2019 December 31, 2019 
$4,625.92 January 1, 2018 December 31, 2018
$4,521.92 January 1, 2017 December 31, 2017
$4,428.91 January 1, 2016 December 31, 2016
$4,337.82 January 1, 2015 December 31, 2015
$4,256.94 January 1, 2014 December 31, 2014
$4,185.78 January 1, 2013 December 31, 2013
$4,062.29 January 1, 2012 December 31, 2012
$3,920.75 January 1, 2011 December 31, 2011
$3,763.44 January 1, 2010 December 31, 2010
$3,600.00 January 1, 2009 December 31, 2009
$3,000.00 January 1, 2008 December 31, 2008
$2,400.00 August 7, 1999 December 31, 2007
$2,100.00 July 1, 1991 August 6, 1999
$1,800.00 July 1, 1989 June 30, 1991
$1,650.00 January 1, 1988 June 30, 1989
$1,325.00 July 31, 1980 December 31, 1987
$1,250.00 August 27, 1977 July 30, 1980
$1,000.00 November 22, 1948 August 26, 1977


Medical Benefits

When your employee suffers a long-term injury or illness from a workplace accident or other work-related activity, workers compensation in Arizona will pay for any reasonable medical treatments needed. This includes getting medical tests, doctor’s visits, prescriptions, surgery, and more. Your employees also get reimbursed for excessive travel time for these medical appointments for lost wages.


Temporary Total Disability

An employee who qualifies for temporary total disability will receive payments for an injury that forces them to miss work entirely. This benefit amount is two-thirds of the employee’s average monthly wage, up to a maximum amount determined by the state of Arizona. 

To qualify for temporary total disability, a physician must have placed your employee on a no-work status. If the employee needs further care and wants to change physicians, the injured worker and the insurance carrier must agree by mutual consent to complete the change.


Temporary Partial Disability

If your employee receives this benefit, they will receive payments to compensate them for the difference in income they experience due to a temporary injury. An injury or illness may force a worker to perform fewer work hours or do less strenuous activities that pay less. An employee has to be placed on a light work status by a doctor to qualify for temporary partial disability benefits.


Permanent Total Disability

A permanent total benefit is paid to an employee who is not reasonably expected to recover from their injury. This injury or illness will leave them so debilitated that they are likely not able to receive future gainful employment. The employee receives payment once per month based on the severity of the injury for the rest of their life or until the impairment ends.


Permanent Partial Disability

Some injuries, known as scheduled injuries, are isolated to one part of the body. For some of these injuries, you receive a specific payment amount based on your level of impairment. This level of impairment is expressed in a percentage that determines the amount you get paid. The other type of injury covered by this disability is unscheduled injury.  These are injuries that do not have official standards set by Arizona law, and the payment award is subject to an annual review to determine the amount. These determinations are made by the Industrial Commission of Arizona (ICA).


Death Benefit

AZ workers comp laws allow for up to $5,000 of burial expenses to be repaid to the surviving spouse or family of the employee. The insurance provider pays any outstanding medical payments the employee owes in full. The employee’s spouse is entitled to 66% of their average monthly wage if they have children. This benefit lasts until the spouse’s death or if they get remarried. When the spouse remarries, they receive a lump sum of two years of benefit payments.

If the employee has surviving children or other dependents, they also receive benefits until they turn 18. The benefit period can be extended if the child attends higher education, allowing them to continue receiving benefits until the age of 22. Other dependents, like siblings and parents of your deceased employee, may also qualify for payments under a death benefit.

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Common Questions About Arizona Workers’ Compensation Insurance

Workmans comp in AZ will differ from other states. Don’t assume that because you know workers’ compensation rules in your state, those will perfectly translate to Arizona requirements. Below are some commonly asked questions about specific details of Arizonia’s workers’ compensation.


How Long Do Employees Need to Wait to Get Workers’ Compensation Benefits in Arizona?

The Arizona workers compensation waiting period is seven days. This means that your employee has to have an injury for seven consecutive days before they will qualify for coverage. They may have to wait longer for payments because some benefits pay every 14 days, and others pay every 30 days.


What Businesses Are Exempt From Arizona Workers’ Compensation Insurance?

Arizona workers compensation rules exempt certain classes of businesses from the requirement to purchase coverage. One group is sole proprietors without employees, who do not have to cover themselves with workers’ compensation insurance. Independent contractors and casual laborers are also exempt from workers’ compensation requirements in Arizona.


What Are the Penalties For Not Having Workers’ Compensation Insurance in Arizona?

Arizona workers compensation laws outline penalties for not providing adequate employee insurance. You may be charged with a felony or misdemeanor crime and sentenced to prison time. The fine for not carrying workers’ compensation insurance is between $1,000 and $5,000. If you commit workers’ compensation fraud, you will be charged with a class 6 felony that holds up to a $50,000 fine.


Does Arizona Provide Cost of Living Adjustments to Workers’ Compensation Payments?

No. Your employee’s compensation payments will not be subject to any cost of living increases in Arizona.


What is a Self-Insured Employer?

The state of Arizona workers compensation can be maintained for your business without going through a private insurer. You have the option to provide workers’ compensation insurance on your own or through a self-insured group of other employers. The ICA allows you to act as your own insurance company if you demonstrate your ability to provide benefits and meet requirements. Currently, around 90 employers in Arizona whom the ICA has certified to be self-insured employers.

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Arizona Workers Compensation Cost

Employers in Arizona pay $132 per month or $1,584 per year for workers compensation insurance. Cost of Workers comp insurance in Arizona will vary depending on the size of your payroll, number of employees, and operating area. Each class of business is also assigned a different risk level, which insurers will use to calculate the cost of your premium. See the chart below for a comparison of some estimated quotes you might see for your Arizona business.

Company Cost per Month Cost per Year Best for
NEXT $104 $1,248 Best overall; Fastest workers compensation insurance.
Thimble $125 $1,500 First-time insurance buyers.
Tivly $130 $1,560 Comparing workers compensation insurance quotes over the phone.
Hiscox $150 $1,800 Businesses who need personalized coverage.
The Hartford $160 $1,920 Longstanding insurance coverage.

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Best Companies for Arizona Workers’ Compensation Insurance

Do you want to know which Arizona workers compensation insurance companies are the best for the price? The following section contains reviews for top insurance companies. Read to know their pro, cons, and average cost:


NEXT 

Pros 

  • Best overall.

  • Get an online proof of insurance and send as a text message, email, or social media post.

  • Fastest workers compensation insurance.

  • Great customer service and reputation.

  • Issues an online proof of insurance instantly.

  • Outstanding value for money.

  • Bundle two or more insurance policies and get a 10% discount.

Cons

  • Couldn’t find any.

NEXT is an affordable provider of workers’ compensation insurance. They were founded in 2016 and leverage AI-based solutions to create cost-effective insurance products. They serve over 420,000 customers and have a gross premium count of over $200 million. Their policy includes employer’s liability coverage and helps employees with lost wages. NEXT has an A- rating with AM Best.

Best for: Best overall; Fastest workers compensation insurance 

Average cost: $104 per month 

Our rating: 10/10


The Hartford

Pros

  • Pay as you go.

  • Can file online.

  • 100% rating from the Corporate Equality Index.

Cons

  • Slower customer service times.

The Hartford offers a premium product in their workers’ compensation insurance policy. Your employees gain access to nurse case managers to help manage their care. These employees also can get prescriptions filled from over 65,000 pharmacies. This company has over 200 years of experience in the insurance underwriting industry. Depending on your location, The Hartford has local agents available. They have a business office located in Phoenix, Arizona. The Hartford has an A- from AM Best and an impressive A+ rating from the Better Business Bureau.

Best for: Longstanding insurance coverage.

Average cost: $160 per month

Our rating: 10/10 


Tivly

Pros

  • Choose from over 200 partners.

  • They match you with the right policy and partners.

  • 20 years of experience in the insurance industry.

Cons

  • You need to talk with a representative to compare quotes.

Tivly is a digital platform that has many options to choose your workers’ compensation policy from. Their policies help your employees cover medical bills, lost wages, and more. Tivly utilizes quick customer service to help you determine which plan is right for you. The company boasts a 4-second phone answering rate. Their solution-centric approach means you don’t have to feel pressured to move forward until you have found a policy covering your unique situation. Tivly has an A rating from the Better Business Bureau. Call now and talk with a representative to compare quotes over the phone. 

Best for: Comparing workers compensation insurance quotes over the phone. 

Average cost: $130 per month 

Our rating: 10/10


Thimble

Pros

  • Quick purchasing process.

  • Resources to help new buyers.

  • Insurance policies can scale as your business does.

Cons

  • You can’t reach customer service by calling.

Thimble offers a simplified insurance buying process that saves you time when buying insurance. They ask fewer questions and help you get covered quicker than many other insurers. This company is a fast-growing insurer, selling over 125,000 policies and representing over $150 billion in policy coverage. If you are a first-time insurance buyer, they are one of the best choices. Over 75% of their customers are also first-time buyers of insurance. Thimble has acquired an A+ rating from the Better Business Bureau.

Best for: First-time insurance buyers.

Average cost: $125 per month 

Our rating: 10/10 


Hiscox

Pros

  • Excellent ability to get a fully customized policy that suits your needs.

  • Save 5% or more when bundling multiple policies.

  • Keeps you up-to-date through a dedicated claims representative.

Cons

  • Doesn’t allow Paypal payments.

Hiscox specializes in offering premium, tailored coverage for small business customers. Their knowledgeable agents work with you to identify business risks and suggest the right policy. They offer a 14-day refund policy and help you save money when buying multiple coverage. The company has flexible payment options and has received a trusted service award from the website Feefo. Hiscox has an A rating from AM Best.

Best for: Businesses who need personalized coverage.

Average cost: $150 per month 

Our rating: 10/10 

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