Is workers comp required in Arizona?
Arizona generally requires employers with one or more employees to provide workers compensation, including part-time workers. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Arizona
Workers comp in Arizona is a competitive private market. Agents compare carriers that write your class of business, and an assigned-risk option exists for employers that private carriers decline.
Who sets the rules
The Industrial Commission of Arizona oversees workers comp in Arizona. In Arizona, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Arizona employers should know
- Heat-related illness is a real exposure for outdoor crews in Arizona, so documented heat safety practices are worth discussing with underwriters.
- Landscaping, roofing and construction trades are among the classes where correct class codes have the biggest effect on premium.
How premiums are calculated
Insurers in Arizona price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for Arizona employers
Contractor workers comp
Workers comp for general contractors and trades like roofing, electrical, plumbing and painting.…
Restaurant workers comp
Workers comp for restaurants, cafes, bars and caterers. Burns, cuts and slips, tipped payroll,…
Retail workers comp
Workers comp for retail shops, boutiques, convenience stores and specialty retailers. What it…
Small business workers comp
Workers comp for small businesses: when it is required, how premium works, pay-as-you-go billing…
Arizona workers comp FAQ
Is workers comp required in Arizona?
Arizona generally requires employers with one or more employees to provide workers compensation, including part-time workers. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Arizona?
The Industrial Commission of Arizona administers the workers compensation system in Arizona.
Can I buy Arizona workers comp from a private insurer?
Yes. Private insurers write workers comp in Arizona, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Arizona?
In Arizona, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. Insurers in Arizona price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment.