Am I Required to Offer Workers’ Compensation to My Employees? 

Workers’ compensation is a form of insurance that provides wage replacement and medical benefits to employees injured during employment. This coverage aims to protect employees by helping workers receive necessary care and compensation if they are injured or made ill on the job.

Workers’ Compensation General Requirements

The requirement to offer this form of compensation varies by state, but here are some general guidelines:

• Number of employees—Most states require businesses with one or more employees to carry this form of compensation insurance.

• Type of business—Certain industries, especially those considered high-risk, such as construction, may have stricter requirements.

• Employee classification—Full-time, part-time and seasonal workers are typically covered, but independent contractors may not be.

Exceptions and Exemptions

While most businesses are required to offer workers’ compensation, there may be some exceptions:

• Sole proprietors—These individuals are often exempt unless they have employees.

• Family members—In some states, family members working for the business may be exempt.

• Agricultural workers—Requirements vary widely by state, with some states offering exemptions for small farms.

Your agent can help determine how local laws affect your company’s compensation insurance requirements.

Workers’ Compensation Requirements in Arizona

In Arizona, his type of insurance is generally mandatory for employers with one or more employees; however, there are some exceptions. Coverage typically includes medical expenses, temporary wage replacement and benefits for permanent injuries.

Employers can obtain this insurance through commercial providers or apply for self-insurance through the Industrial Commission of Arizona.

Contact Us

Contact Driven Insurance Services in Phoenix, Arizona, for a personalized workers’ compensation insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.