Workers’ Comp Insurance in Arizona

TCI Insurance Agencies provide workers’ comp insurance solutions to businesses in Arizona.

Get your Workers' Comp Insurance quote started now!


What is workers’ comp insurance?

Workers’ compensation insurance, commonly known as workers’ comp, is a type of business insurance that provides benefits to employees who are injured or become ill due to their job. This coverage helps protect both employees and employers by offering financial support for medical expenses, lost wages, and rehabilitation services for injured workers, while also shielding employers from most employee injury lawsuits.

What does workers’ compensation insurance cover in Arizona?

Workers’ comp insurance typically offers coverage that helps protect both employees and employers. Specifically, it covers:

  1. Medical Expenses: If an employee is injured or becomes ill due to work, workers’ comp insurance pays for medical expenses, including doctor visits, hospital stays, surgeries, medications, and necessary medical equipment.
  2. Lost Wages: When an employee cannot work due to their injury, workers’ comp provides partial wage replacement, ensuring they have financial support during recovery.
  3. Rehabilitation Costs: If an injury requires physical therapy or vocational training, workers’ compensation insurance may cover the costs associated with the employee’s recovery and reintroduction to the workforce.
  4. Disability Benefits: Workers’ comp insurance also includes disability benefits, which provide compensation for employees who suffer temporary or permanent disabilities that limit their work capabilities.
  5. Death Benefits: In tragic cases where an employee loses their life due to a work-related injury, workers’ compensation insurance offers death benefits to their dependents.
Workers' Comp Insurance Arizona

Get a Quote

Share your details with us, and we’ll craft a personalized quote tailored to your needs.


Workers' Comp Insurance Arizona

Are there penalties for not having workers’ compensation?

Yes, Arizona imposes strict penalties on employers who fail to provide workers’ compensation insurance. Without it, businesses risk fines, legal action, and potential closure until proper insurance is secured. Additionally, employers who operate without workers’ comp insurance may be held personally liable for covering all expenses related to an employee’s injury, including medical bills, lost wages, and disability payments.

  • In Arizona, independent contractors are generally not covered under workers’ compensation insurance. This coverage is typically reserved for employees, meaning individuals classified as independent contractors are not eligible for benefits if they sustain an injury while performing work. However, businesses should be cautious when classifying workers because misclassifying an employee as an independent contractor could result in penalties and liability. If a contractor wishes to protect themselves against potential injuries, they may consider purchasing their own occupational accident insurance policy.

  • Yes, workers’ compensation insurance in Arizona may cover injuries that occur during work-sponsored events or business travel. If an employee is injured while participating in an event organized or required by their employer—such as a company picnic, retreat, or off-site training—the injury may be eligible for coverage under workers’ compensation. Similarly, injuries that happen while an employee is traveling for work are generally covered, as long as the travel was for business purposes and within the scope of their job duties. However, injuries that happen during personal time on the trip, such as sightseeing or personal errands, may not qualify for coverage.

  • Yes, workers’ compensation may cover employees who work from home, provided the injury occurs while they are performing job-related duties. For Arizona employees who work remotely, workers’ compensation applies as long as the injury is work-related and happens during the employee’s regular working hours. For example, if an employee is injured due to a work-related activity, such as lifting work equipment, the injury may qualify for workers’ comp benefits. However, proving that the injury occurred in the course of work may be more complex, so it’s essential for remote workers to document their work activities and keep a clear boundary between work and personal activities.

  • The cost of workers’ comp insurance in Arizona is influenced by several key factors:

    1. Industry Classification: Different industries have varying levels of risk associated with them. Higher-risk industries, such as construction or manufacturing, typically face higher premiums compared to lower-risk industries like office work or retail.
    2. Payroll Size: The total payroll for the business directly impacts the cost of workers’ comp insurance. Insurers calculate premiums based on the amount paid to employees, with higher payrolls leading to higher premiums.
    3. Claims History: A business’s history of workers’ compensation claims can affect costs. Employers with a history of frequent or severe claims may face higher premiums, as insurers see them as higher risk.
    4. Number of Employees: The size of the workforce plays a role in determining premiums. More employees typically mean a higher likelihood of claims, leading to increased costs.
    5. Location: The geographical area where the business operates can influence costs due to varying state regulations, economic conditions, and risk factors specific to that location.
    6. Coverage Limits and Options: The chosen coverage limits and any additional options, such as extended coverage for employees in high-risk roles, can affect the overall cost of the policy.
TCI Insurance Agencies

How can Arizona employers obtain workers’ comp insurance?

Reach out to the independent agents at TCI Agencies for a fast quote on workers’ comp insurance in Arizona. Our knowledgeable team is ready to help you navigate the complexities of workers’ compensation insurance, ensuring your business is fully compliant while protecting your employees. 

Need more info?

Need to contact our team? We have options! Quickly request a review of your insurance, schedule a one on one consultation with an advisor or sign up for our newsletter here!

Schedule a Consultation
Join our mailing list