Cheap Workers Compensation Arizona
As the owner of Blake Insurance Group, I understand the importance of workers’ compensation insurance for small businesses, startups, and sole proprietors in Arizona. This insurance is not just a legal requirement but also a crucial safety net protecting employers and employees.
Workers’ compensation insurance is a form of coverage that protects a business owner from claims by employees who experience a work-related injury or illness. It typically covers the employee’s medical expenses, rehabilitation costs, and at least some portion of their lost wages. If an employee is killed on the job, it also pays a funeral benefit.
In Arizona, all employers with one or more employees, whether part-time, full-time, private, or government, must carry workers’ compensation insurance. This insurance does not cover Independent contractors and domestic workers.
Importance of Workers’ Compensation Insurance
Workers’ compensation insurance is a crucial part of small business insurance because it can pay for medical bills, recovery costs, and disability benefits if an employee is injured at work. It can also cover funeral costs and death benefits for an employee’s family in the event of a fatality on the job.
Without workers’ compensation insurance, your business could be responsible for paying the injured worker’s medical expenses and lost wages. In addition, a penalty of 10% or $1,000, whichever is more extensive, may be added. You also run the risk of a lawsuit if an employee gets hurt. In that case, you could pay for related expenses out of pocket.
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Legal Requirements in Arizona
Under Arizona law, employers must secure workers’ compensation insurance. Employers who meet specific requirements can also apply to the Industrial Commission of Arizona (ICA) for permission to be self-insured for workers’ compensation. Once an employer obtains insurance or authority to self-insure, the employer must post a notice of workers’ compensation insurance carrier, the policy number, and the date of coverage expiration.
Failure to carry workers’ compensation is a felony charge in Arizona. Civil penalties vary between $1,000 and $10,000 depending on the number of offenses. A Superior Court in Arizona may also shut a business down for non-compliance.
Affordable Workers’ Compensation Insurance in Arizona
The cost of workers’ compensation insurance in Arizona can vary significantly depending on several factors, such as the type of business you run, its location, and your safety record. However, there are affordable options available. For instance, Huckleberry offers workers’ compensation insurance in Arizona, starting at $23.00 monthly.
Benefits of Worker’s Compensation Insurance
Workman comp insurance in Arizona offers a multitude of benefits to both employers and employees. It’s not just about legal compliance; it’s about creating a safer, more secure work environment. Here are some of the key benefits:
Protection from High Costs of Work-Related Injuries and Illnesses
Work-related injuries and illnesses can burden workers, families, and the economy. The financial burden of these incidents is substantial, with employers paying more than $1 billion per week for direct workers’ compensation costs for disabling, non-fatal workplace injuries.
Workers comp insurance Arizona provides coverage to help your employee pay for medical expenses related to a work-related injury or illness. This can include emergency room visits, necessary surgeries, and prescriptions. It also helps replace some of your employee’s lost income if they need time off to recover from a work-related injury or illness.
For example, if an electrician cuts their hand at a customer’s home, workers’ compensation insurance can help cover the hospital visit. If a restaurant chef spills boiling water on her arm and can’t work for two weeks, workers’ compensation coverage can help replace some of her lost wages.
Legal Compliance - Arizona workers compensation laws
In Arizona, employers must secure workers’ compensation insurance. Employers who fail to provide coverage could face penalties, including assessments up to $2,000 for every ten days of noncompliance.
Moreover, without workers’ compensation insurance, your employees can sue you for a work-related injury or illness to help pay for their medical costs or lost wages. Therefore, having workers’ compensation insurance helps you comply with the law and protects your business from potential lawsuits.
Enhancing Workplace Safety
Workers’ compensation insurance also encourages employers to prioritize workplace safety. A safer work environment can lead to fewer injuries and lower workers’ compensation insurance premiums.
A study showed a 9.4% drop in injury claims and a 26% average savings on workers’ compensation costs four years after a safety inspection compared to a similar set of uninspected workplaces.
Providing Peace of Mind
Finally, workers’ compensation insurance provides peace of mind to both employers and employees. Employees know they will be taken care of if injured on the job, and employers can rest easy knowing they are protected from the financial fallout of workplace accidents.
Cost Factors of Worker’s Compensation Insurance
The cost of workers’ compensation insurance is determined by several factors:
Industry and Risk Level
Every industry and job role has a specific classification code associated with a risk level. This code helps insurers assess the likelihood of a worker getting injured on the job. For instance, businesses in riskier industries like construction typically have higher premiums.
Number of Employees and Payroll
The size of your company, in terms of the number of employees and total payroll, also influences the cost of your workers’ comp insurance. More employees mean more risk of accidents and thus higher premiums. Insurance providers use your payroll to calculate your premiums. You’ll pay a certain amount of premium for every $100 in payroll, based on the average weekly wage of your employees.
Claims History
Your company’s history of work-related injuries also plays a significant role in determining your workman’s compensation insurance premiums. A history of frequent claims can lead to higher premiums.
State Requirements
Workers’ compensation insurance is regulated at the state level, and the requirements vary by state. Some states require coverage as soon as you hire your first employee, while others have different thresholds. These state-specific laws can impact your workers’ compensation premium.
Strategies to Reduce Premiums
There are several strategies that businesses can employ to reduce their workers’ compensation insurance premiums:
Implement a Safety Program
Implementing a safety program can help prevent workplace injuries, reducing the number of claims and, consequently, the cost of insurance premiums. A comprehensive workplace safety program includes training employees in safe work practices and identifying potential hazards.
Efficiently Resolve Claims
Efficiently resolving claims when they occur can help reduce the cost of workers’ compensation insurance. The longer a workers’ compensation claim stays open, the more expensive the claim becomes.
Implement a Return-to-Work Program
A return-to-work program can create a direct cost benefit to the workers’ compensation claim. It’s often the case that the longer a workers’ compensation claim stays open, the more expensive the claim. For example, when injured employees return to work later, the claim must cover more replacement income.
Join a Professional Employer Organization (PEO)
A PEO can cut its workers’ compensation premiums by negotiating competitive programs with insurance providers.
Regularly Review Your Policy
Regularly reviewing your policy and discussing it with your insurance broker can help you identify potential areas for savings. This could include adjusting your deductibles or exploring available premium credits.
Claims Process for Worker's Compensation
The claims process for worker’s compensation begins with the injured employee notifying their employer about the injury. This should be done as soon as possible, ideally within seven days of the incident. After being notified, the employer is required to file an Employer’s Report of Injury to the relevant state’s industrial commission.
The employer’s workers’ compensation insurance carrier is notified of the claim and has a certain period (for example, 21 days in Arizona) to accept or deny compensation. If the claim is accepted, the injured worker will receive benefits to cover medical expenses, lost wages, and other related costs.
It’s important to note that workers’ compensation is a “no-fault” system, meaning that benefits are provided regardless of who caused the job-related accident. However, there are some exceptions and certain conditions may not be covered.
Employer’s Liability Insurance
Employer’s liability insurance is typically included in worker’s compensation policies. It helps cover legal expenses if an employee blames their injury on the employer’s negligence. This insurance is crucial because, despite workers’ compensation is considered the exclusive remedy for employees with work-related disabilities, there are instances where an employee’s injury or disease is not subject to the workers’ compensation laws.
In such cases, the employee might sue their employer, and their liability insurance can help cover the legal costs associated with such lawsuits. However, the “exclusive remedy” provision in most workers’ comp policies prohibits employees from suing their employer if they accept workers’ comp benefits.
It’s important to note that the specifics of an employer’s liability insurance can vary by state. For example, in some states known as “monopolistic states,” employer’s liability insurance isn’t included in the workers’ compensation policy and must be purchased separately.
Specifics for Small Businesses
Small businesses have unique needs and considerations regarding workers’ compensation insurance. Some key aspects to consider include the impact of claims on a small business and the requirements for businesses with only one employee.
Impact of Claims on Small Businesses
Workers’ compensation claims can significantly impact small businesses more significantly than larger ones. This is because larger companies have deeper pockets and larger payrolls that can absorb the financial loss more easily. Additionally, larger companies are more likely to have safety and training programs and employees experienced in managing claims.
For small businesses, a single claim can result in higher premiums for insurance coverage, depending on the nature of the claim, the resulting medical bills, and any disability benefits. This can strain the financial resources of a small business, making it crucial for them to prioritize workplace safety and risk management.
Requirements for Businesses with One Employee
In many states, including Arizona, all businesses with one or more employees, whether part-time or full-time, are required to carry workers’ compensation insurance. This means that even if you have only one employee, you must provide workers’ compensation coverage to comply with state laws.
Sole proprietors and independent contractors are not required to have workers’ compensation insurance coverage. However, if a sole proprietor hires employees, those employees must be covered.
In conclusion, small businesses must know the specific needs and considerations related to workers’ compensation insurance. This includes understanding the impact of claims on their business and ensuring compliance with state requirements, even if they have only one employee. By prioritizing workplace safety and risk management, small businesses can better protect themselves and their employees.
Arizona workers compensation insurance companies
Pie Insurance
Pie Insurance provides workers’ compensation insurance specifically focused on small businesses. They leverage data-driven insurance technology to offer competitive coverage at affordable prices. Pie Insurance aims to simplify buying workers’ compensation insurance, offering quotes in as little as three minutes and potential savings of up to 30% for small businesses.
Their commitment to small businesses extends beyond just providing insurance; they also sponsor events like the Small Business Administration’s National Small Business Week to support and celebrate the contributions of small businesses.
Three by Berkshire Hathaway
Three by Berkshire Hathaway is a commercial insurance provider that offers a comprehensive policy, including workers’ compensation insurance. Their unique approach simplifies insurance by combining multiple policies into one easy-to-understand policy, covering various aspects such as business liability, commercial property, and cyber insurance.
This all-in-one policy is designed to eliminate gaps in insurance coverage and potentially save small business owners up to 20% on premiums. As a part of the Berkshire Hathaway family of companies, Three by Berkshire Hathaway is backed by a solid financial foundation and aims to provide innovative insurance solutions for small businesses.
Next Insurance
Next Insurance provides workers’ compensation coverage to protect employees and small businesses. They offer a seamless online application process and can bundle policies for savings. Their workers’ compensation insurance covers medical expenses, loss of income, and retraining for employees, as well as permanent injury and survivor benefits.
They also offer optional coverage for self-employed workers, sole proprietors, and LLC businesses. Next Insurance’s policies are tailored to specific industries, including construction and retail, and assist in the claims process.
Progressive Commercial
Progressive Commercial offers workers’ compensation insurance to cover medical expenses and a portion of lost wages for employees who become injured or ill on the job. This coverage also includes employee rehabilitation and death benefits. Progressive’s workers’ compensation insurance complies with state laws, ensuring employers provide coverage for work-related injuries or occupational diseases.
In 2022, the national median cost of workers’ compensation insurance through Progressive was $70 per month, making it an affordable option for many businesses. Progressive Commercial is known for its competitive pricing and comprehensive coverage, making it a reliable business choice.
Travelers
Based on market share, travelers is the largest provider of workers’ compensation insurance in the United States. With $3.8 billion in Direct Premiums Written, it represents a 6.69% market share in the workers’ compensation insurance marketplace.
Travelers offer a range of coverages for individuals and businesses, including workers’ compensation insurance in almost every state. Its leading position in the market is backed by a solid financial foundation and a commitment to providing comprehensive coverage for work-related injuries or occupational diseases.
The Hartford
The Hartford is a major provider of workers’ compensation insurance, holding a 6.10% market share. They offer coverage that includes medical treatments, disability benefits, vocational rehabilitation, and death and funeral services.
The Hartford’s policies are designed to support companies in various industries, promote employee safety, and facilitate the return to work or transitional work for injured employees. They also provide access to training for new skills. The cost of workers’ compensation insurance with The Hartford varies, but most of their customers with less than $300,000 in payroll pay an average of $81 a month.
Liberty Mutual
Liberty Mutual is a significant provider of workers’ compensation insurance, holding a 4.36% market share. They offer coverage for medical treatments and disability benefits and help to mitigate employer liability. With over a century of experience, Liberty Mutual provides resources to help companies improve safety, protect employees, and control workers’ compensation costs.
They have a robust understanding of the workers’ compensation landscape and claim types across industries. Liberty Mutual also offers access to medical provider networks and pharmacy programs to support the injured worker and the employer through injury recovery.
Zurich
Zurich is a significant player in the workers’ compensation insurance market, holding a 5.08% market share. They offer coverage for medical and rehabilitation expenses loss of earnings, and help mitigate employer liability. Zurich’s policies are designed to support businesses in various industries, including construction.
They provide coverage in all jurisdictions outside monopolistic ones, and their global capabilities enable them to offer coverage no matter where employees work. Zurich’s workers’ compensation insurance is backed by its financial solid foundation and commitment to managing complex situations.
Chubb
Chubb is a significant provider of workers’ compensation insurance, holding a 4.67% market share. They offer specialized workers’ compensation insurance coverage for businesses of all sizes and industries. Chubb’s policies go beyond the policy, providing resources to help improve safety, minimize costs, and enhance employee care, morale, and productivity.
They offer a comprehensive medical and disability claims management program, and their risk engineers help reduce or eliminate workplace risk factors that can contribute to occupational illnesses or injuries. Chubb’s commitment to providing world-class service has earned them a reputation for handling claims promptly with empathy and integrity.