Get Great Coverage in Minutes
All it takes is a few clicks.
Arizona Workers’ Compensation Laws
As an employer in Arizona, you’re required to provide workers’ compensation insurance for your employees. In fact, workers’ comp in Arizona is a “no fault” system. This means injured workers always receive medical benefits and compensation, no matter what caused their job-related accident.1 With workers’ comp insurance, Arizona employees who get hurt or sick on the job receive benefits like:
- Coverage for medical expenses
- Temporary wage compensation if they need time off to heal
- Permanent compensation or job retraining for severe injuries
The Industrial Commission of Arizona (ICA), handles workers’ comp claims. The ICA started in 19252 and has two divisions: the Claims Division and the Administrative Law Judge (ALJ) Division.
The Claims Division focuses on:3
- Overseeing insurance companies that process claims filed by injured workers
- Making sure workers receive proper benefits under Arizona Workers’ Compensation Law
The staff in the claims division are available for general help, not legal advice. They’ll be able to answer any questions you may have about workers’ compensation rules.
When the Claims Division gets a request for a hearing, the case moves to the Hearing Division of the ALJ. The ALJ division handles disputes between claimants, employers and insurance carriers.4 Some of the disputes involve:5
- Compensability
- Continuing benefits
- Supportive care
- Reopening of claims
- Loss of earning capacity
Arizona Workers’ Compensation Insurance Coverage and Rates
Under Arizona’s law, if you have one or more workers, you must carry workers’ compensation insurance.What’s covered? In Arizona, workers’ comp covers all medical expenses to heal the work-related injury or illness. It can also provide some of the missed wages when injured workers need time off to recover.
Coverage requirements in Arizona say you must provide workers’ comp for full-time and part-time workers. However, certain employees do not need workers’ compensation, including:7
- Independent contractors
- Casual employees whose work is not part of the normal operation of your business
- Domestic employees who work in a private home
Sole proprietors and partners with no employees also have workers’ comp exemptions, but can still choose to have it if they want the peace of mind. Any corporate officers at your business may also need workers’ comp coverage.8
Workers’ comp premiums are different for every business. In Arizona, several factors go into deciding your premium. Workers’ comp class codes are one of those factors. Class codes, established by the National Council on Compensation Insurance (NCCI) system,9 represent the amount of risk a worker faces on the job. That risk level then determines your workers’ compensation coverage premium.
Proof of coverage is a document that shows your business has the proper workers’ comp insurance. In Arizona, you can get workers’ comp coverage through a commercial provider, like The Hartford. Self-insurance is also an option, but you must apply for it through the ICA.
Once you get your policy with us, we’ll help you get proof of coverage right away. To learn more, get a workers' comp quote today. Our specialists and insurance agents are eager to find the coverage that fits your business.
What Workers’ Compensation Covers in Arizona:
Arizona workers’ comp policies help cover:
Accidents or injuries that happen on the job. For example, if your employee sprains their ankle while mopping, workers’ comp can help provide medical benefits.
Missed wages if an employee needs time off to recover. Payments depend on the employee’s average monthly wage before they got hurt.10Ongoing care for more severe injuries. If an employee breaks their leg on the job, they may need surgeries and weeks of physical therapy to heal. Workers’ comp can help cover those costs.
Illnesses from exposure to unhealthy working conditions or substances.
Repetitive injuries, like carpal tunnel syndrome from repeated strain during the work day.
Funeral costs and death benefits for the family of an employee who dies in a work-related incident.
Disability benefits if a work-related injury or illness keeps an employee from returning to work right away.
Arizona Workers’ Compensation Fee Schedule
Since 1925, The Industrial Commission of Arizona has overseen the state’s workers’ comp law.11 The commission sets the Arizona physician fee schedule, which determines the fees medical professionals charge when treating injured workers. Medical professionals can include physicians, physical therapists or occupational therapists.12Arizona legislature also recently passed Arizona Revised Statute 23-908, an amendment that sets the fees for prescription medications for injured workers.13
For more information about the Arizona workers’ compensation fee schedule, visit ICA’s website.
Arizona Workers’ Compensation Claims
Injured workers’ in Arizona are responsible for filing a workers’ comp claim within one year of their injury,14 but they should notify you as soon as they can. This makes it easier to fill out all the documents they’ll need for the claim.
Your employees can make workers’ compensation claims by submitting either:15
- A Worker's and Physician's Report of Injury at the doctor’s office
- A Worker's Report of Injury from the ICA
To file a claim with The Hartford, visit our workers’ comp claims page today.
This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive or exemplary damages in connection with the use by you or anyone of the information provided herein.
1, 2, 3, 4, 5 “Claims Division (Including the Ombudsman’s Office), Industrial Commission of Arizona, https://www.azica.gov/divisions/claims-division
6, 7, 8 “Workers’ Compensation Insurance: Employers’ Frequently Asked Questions,” Industrial Commission of Arizona, https://www.azica.gov/sites/default/files/migrated_pdf/Claims_FAQs_WorkersCompensation.pdf
9 “Obtaining Workers’ Compensation Coverage Information For an Employer,” Industrial Commission of Arizona, https://www.azica.gov/obtaining-workers-compensation-coverage-information
10 “Arizona Workers’ Compensation Laws,” FindLaw.com, https://statelaws.findlaw.com/arizona-law/arizona-workers-compensation-laws.html
11, 12, 13 “Arizona Physicians’ & Pharmaceutical Fee Schedule Frequently Asked Questions,” Industrial Commission of Arizona, https://www.azica.gov/fee-schedule-frequently-asked-questions
14, 15 “Filing a Claim,” Industrial Commission of Arizona, https://www.azica.gov/claims-filing-claim