Job growth in Arizona is predicted to grow rapidly over the next 30 years, which is good news if you’re a small business owner. However, you’re going to need workers compensation insurance for all those new employees. Let’s look at the six best companies for workers compensation insurance in Arizona.
- The 6 best workers compensation insurance companies in Arizona
- Workers compensation laws in Arizona
- What does workers compensation insurance cover in Arizona?
- What doesn’t it cover?
- How much does workers compensation insurance cost in Arizona
- How to find cheap workers compensation insurance in Arizona?
- How is workers compensation insurance different from general liability insurance?
The 6 best workers compensation insurance companies in Arizona
More than 50 companies offer workers compensation insurance in Arizona. We study them and recommend the 6 best providers for your consideration.
- CoverWallet: Best for comparing online quotes
- Cerity: Best for simple insurance policy and cheap quote
- Huckleberry: Best for same day coverage
- Employers: Best for working with an agent
- Amtrust Financial: Best for risk management
- The Hartford: Best for comprehensive coverage
CoverWallet: Best for comparing online quotes
CoverWallet works with partners to provide workers compensation insurance. When you apply for a quote, it comes up with two or three different companies for you to compare. This makes comparison shopping much easier and faster. Getting a quote takes less than 10 minutes.
This quote is for an HVAC contractor with six employees and $500,000 annual payroll.
As you can see, we received two quotes: one from AmTrust and the other from Guard (a subsidiary of Berkshire Hathaways). AmTrust quote is 30-40% cheaper but you have to buy the policy through phone. The quote from Guard is more expensive, but you can buy it online, which is a good advantage for buyers.
Cerity: Best for simple insurance policy and cheap quote
Cerity is an online insurer for small businesses. You can pay month-to-month without incurring any extra fees, which is important for budgeting. You can also cancel at any time. Online quoting is fast and easy.
Another handy thing about is Cerity is that they have registered nurses on call 24/7. This can be remarkably handy if an employee sustains an injury, and you have questions.
The following quote is for an HVAC contractor with 6 employees and $500,00 in annual payroll.
Huckleberry: Best for same day coverage
Huckleberry can provide you with coverage the same day you apply for it. They are 100% paperless, completely online, and provide online quotes. Most of the time, anyway. When we entered our information, they said they needed more time to finalize our quote and would get back to us.
They have other policies you might need as well, making them a convenient one-stop shopping website for busines insurance.
Employers: Best for working with an agent
Employers has been around since 1913, providing insurance for small businesses. They don’t offer online quoting—you’ll have to work with an agent to get a price. They insure 46 states and over 30 low to medium risk industries. This means higher-risk industries, such as contractors or roofers, will have to look elsewhere for insurance.
Amtrust Financial: Best for risk management
Amtrust also works through agents, which they say provides a personalized approach to business insurance. If you do go through them, they also offer cyber insurance, EPLI, commercial property and general liability policies.
What makes Amtrust Financial stand out is their loss control department, which can provide you with risk management support.
The Hartford: Best for comprehensive coverage
The Hartford serves over 1,000,000 businesses in all fifty states. They offer online quoting, but to purchase a policy you’ll have to contact a coverage specialist. They are one of the oldest insurance companies in the United States, having originated in 1810.
They have policies that are customizable to specific industries, and they insure almost every industry. You can bundle your business policies and get a discount, not to mention have all of your insurance in the same place.
This is a quote for an HVAC company with $540,000 in annual payroll.
>>MORE: Top 10 Workers Comp Insurance Companies by Market Share
Workers compensation laws in Arizona
Every business that employs even one employee in Arizona needs workers compensation insurance. It doesn’t matter if they are full-time or part-time: if you have employees, you need workers compensation insurance.
The only exceptions are independent contractors, casual or occasional workers, and domestic workers. However, make sure you follow state guidelines regarding whether you have an independent contractor or an employee.
The Industrial Commission of Arizona regulates workers compensation insurance. If you don’t have insurance and an employee gets injured, the ICA will pay the benefits, then bill you plus a 10% penalty.
What does workers compensation insurance cover in Arizona?
Workers compensation insurance is required by most states (except Texas) for good reason. It protects both the employer and the employee if something happens, and the employee is injured or fall ill. It covers:
- Medical care
- Lost wages
- Disability benefits
- Job re-training if they are unable to return to their previous job
- Death benefits
Without workers compensation insurance, you, as the employer, would have to provide the employee with all those benefits.
Workers compensation is generally no-fault insurance, meaning it doesn’t matter whose fault it was the employee got injured.
What doesn’t it cover?
Workers compensation does not cover every scenario. It doesn’t cover:
- Intentional injuries or illness
- Substance abuse—worker was drunk or high when the accident occurred
- Illegal activities
- Employees who were not on the clock
- Employees who violate company guidelines—for example, assault.
How much does workers compensation insurance cost in Arizona?
The average cost of workers compensation insurance in Arizona is $0.83 per $100 payroll. It is somewhere between $0.20 and $20.61, depending on the industry. This rate is close to the median across all states.
Rates vary according to:
- Annual payroll
- Location
- Number of employees
- Industry and level of risk of that industry
- Claims history
There’s a formula to figure out how much you’ll pay:
Payroll/$100 X Class code rate X experience rate modification = premium
What’s the experience rate modification, you ask? This is how the insurance industry compares your business to similar businesses and industry averages so they can predict how likely it is you’ll file a claim.
Lastly, different insurance companies will give you different quotes. Be sure to shop around with a few companies or with a digital broker like CoverWallet so that you can compare several quotes to select the cheapest one for your company.
>>MORE: How Much does Works Comp Insurance Cost?
How to find cheap workers compensation insurance in Arizona?
The most important thing you can do to save money is make sure you’re using the right class code for every employee. Some class codes have much higher rates than others. Also remember to update the codes if an employee is promoted or changed jobs within your company.
You can also save money by providing a safe workspace for employees, so they won’t get injured. Some insurance companies will provide a risk management assessment, which is worth taking advantage of.
You could also consider pay-as-you-go workers compensation insurance, which might save you money. It’s based on your actual payroll, rather than estimated payroll. So, if three people quit one month, your rate will be lower for that month.
>>MORE: Cheapest Workers Comp Insurance Companies
How is workers compensation insurance different from general liability insurance?
Workers compensation covers your employees: general liability covers third parties, like customers and guests. If a client is injured on your jobsite, general liability will pay their claim. If one of your employees is injured on a jobsite, workers compensation will pay for their medical bills and lost wages.
>>MORE: Best General Liability Insurance Companies
Last thoughts
Running a small business can involve a lot of compromises. One thing you can’t compromise on is workers compensation insurance. It’s required, and you want to treat your employees well if they do get injured.
