How Much Does Workers Comp Insurance Usually Cost in Arizona?

Workers comp insurance is a crucial aspect of any business that employs workers. It provides financial protection to employees who are injured or become ill due to work-related causes by helping pay for medical expenses, lost wages, and other costs associated with workplace injuries. The cover is also designed to protect employers from lawsuits related to workplace injuries. 

It’s mandatory for employers in Arizona to provide worker’s compensation insurance to their employees. However, many business owners are often left wondering about the cost of worker’s comp insurance in the Copper State. 

Read on as we take a closer look at AZ workers comp insurance pricing, so you can make an informed decision and ensure you’re getting the best coverage for your business.  

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Average AZ Workers Comp Insurance Pricing 

As per the National Council on Compensation Insurance (NCCI), the average cost of worker’s comp insurance in Arizona is less than $1 per $100 of payroll. This means that if your payroll is $100,000, you can expect to pay under $1,000 per year in worker’s comp insurance premiums. 

However, this is just an average, and the actual cost can be higher or lower depending on these factors:

• Size of Your Business

Larger businesses with more employees generally pay more for worker’s comp insurance than smaller businesses with fewer employees. This is because the more employees there are, the higher the risk of workplace injuries and illnesses.

• Nature of Your Employees’ Work

The nature of your employees’ work is another factor that affects the cost of worker’s comp insurance. 

Jobs that involve more physical labor or more dangerous work are generally considered higher risk and have higher premiums. For example, a construction company will likely pay more for worker’s comp insurance than an office-based business.

• Number of Employees Covered

The number of employees covered by your worker’s comp insurance policy is also a factor that affects the cost. The more employees you have, the more you’ll pay for worker’s comp insurance. However, some insurers offer discounts for larger policies, so it’s worth shopping around to find the best deal.

• Your Claims Track Record

If you’ve had several claims in the past, you may have to pay higher premiums. This is because insurers see businesses with a history of claims as higher risk.

In Summary

Whether you’re just starting out or you’ve been in business for years, it’s essential to have this type of insurance to protect your employees and your business. But AZ workers comp insurance pricing can be costly, especially for small businesses. 

As such, small business owners must implement safety measures to reduce the risk of workplace injuries and illnesses. So, try to shop around for the best deals and compare quotes from different insurers. If possible, consider increasing your deductible to lower your premiums and investing in employee training to reduce the risk of workplace injuries and illnesses.

Lastly, be sure to work with an experienced insurance broker who can help you find the best coverage at the best price. With these tips in mind, you can find the best coverage at the best price for your business.

Author: Lucy Wilson