Workers compensation policy information for the State of Arizona

Related Pages: More About Arizona Rules

State: Arizona

Updated: Rating Payroll 06-25-2023

Authority/State Rating Bureau: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
800-622-4123

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: Arizona maintains a state administered fund who competes with private insurers

Assigned Risk: NCCI maintains the Arizona Workers Compensation Assigned Risk Plan (AWCARP).

Assigned Risk Contact Information: NCCI Holdings Inc. ; Arizona Assigned Risk Plan, Pool or Residual Market is administered by NCCI Holdings, Inc.

Numerical Exceptions: None, if an employer has 1 employee they are required to carry workers compensation.

Individual Waivers Allowed: Yes

Small Deductible Program Details:
Allowed: Yes – Optional that insurance carriers make available
Deductible Range: Not Specified
Type: Medical and Indemnity
Effect on Experience Rating: Gross
Available In: Voluntary Markets
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/can elect to be included. If included the rating payroll used is a minimum monthly of $600 and a maximum monthly of $3,920.75 as of 1-1-2011, $600/$4,062.29 as of 1-1-2012, $600/$4,185.78 as of 1-1-2013, $600/$4,256.94 as of 1-1-2014, $600/$4,337.82 as of 1-1-2015, $600/$4,428.91 as of 1-1-2016. $600/$4,521.92 as of 1-1-2017. $600/$4,625.92 as of 1-1-2018. $660/$4741.57 as of 1-1-2019. $600/$4741.57 as of 1-1-2020. $600/$4888.56 as of 1-1-2021. $600/$5030.33 as of 1-1-2022. $600/$5161.12 as of 1-1-2023. Sole-proprietors and Partners covered only if endorsed on policy.

Partners: Excluded from coverage/can elect to be included. If included the rating payroll used is a minimum monthly of $600 and a maximum monthly of $3,920.75 as of 1-1-2011, $600/$4,062.29 as of 1-1-2012, $600/$4,185.78 as of 1-1-2013, $600/$4256.94 as of 1-1-2014, $600/$4,337.82 as of 1-1-2015, $600/$4,428.91 as of 1-1-2016. $600/$4,521.92 as of 1-1-2017. $600/$4,625.92 as of 1-1-2018. $660/$4741.57 as of 1-1-2019. $600/$4741.57 as of 1-1-2020. $600/$4888.56 as of 1-1-2021. $600/$5030.33 as of 1-1-2022. $600/$5161.12 as of 1-1-2023.  Sole-proprietors and Partners covered only if endorsed on policy.

Corporate Officers: Included in coverage/can elect to be excluded. If included the rating payroll used is a minimum weekly of $900 and a maximum weekly of $3,600 as of 1-1-2011, $900/$3,700 as of 1-1-2012, $950/$3,900 as of 1-1-2013, $1,000/$3,900 as of 1-1-2014, $1,000/$4,000 as of 1-1-2015, $1,000/$4,100 as of 1-1-2016. $1,050/$4,200 as of 1-1-2017. $1,050/$4,300 as of 1-1-2018. $1,100/$4,400 as of 1-1-2019. $1,100/$4,400 as of 1-1-2020. $1,150/$4,400 as of 1-1-2021. $1,200/$4,460 as of 1-1-2022. $1,200/$4,800 as of 1-1-2023.

LLC Members: See special notes below.

Election of Rejection of Coverage Forms: Contact the Arizona Industrial Commission about Exclusion or Inclusion forms and procedures.

Notes About Forms: Be sure to check with your insurance company for additional forms they may use.


Contractors: Those who perform different work from a client, who are not supervised by the client are considered independent contractors and not employees.

Special Notes: LLC Members – An LLC with one or more employees must provide coverage. It is not clear if members of the LLC are counted as employees. Please note that Arizona statute is confusing on this subject. If you have any questions about the need to secure coverage be sure to contact the Industrial Commission of Arizona or an attorney familiar with Arizona workers comp statutes regarding this topic.

Experience Rating Eligibility: Employers in Arizona become eligible for an experience modification rate or EMR when they meet one of these parameters:

• $6,000 in policy premium is generated during the last year or last two years.
• $3,000 is the average policy premium generated for more than two years.

Arizona Workers Compensation Subrogation: You can find information about subrogation of workers compensation for the State of Arizona in the Arizona Statute 23-1023. Follow the link we’ve provided below for direct access to this statute.

Arizona Workers Compensation Subrogation Statute

Arizona Workers In Other States; Other States Workers In Arizona; Extraterritorial; Reciprocity; Non-Compliance: When an Arizona worker is working temporarily in another state, workers compensation coverage for that worker is governed by the extraterritorial provisions found in Arizona statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. Reciprocity governs coverage for a worker from another state who is working temporarily in Arizona. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!

• Extraterritorial:
  • Provisions: Yes
  • Duration: 6 Months
• Reciprocity:
  • Allowed: No
• Specific Statute or Reference: 23.904
• For More Information Contact: Arizona Industrial Commission 602-542-5286

Regulated By: Arizona State Insurance Department

Department of Insurance – Consumer Complaint Department
2910 N. 44th Street, Ste. 210
Phoenix, AZ 85018
(602) 364-2499
http://www.id.state.az.us

Workers compensation statute can be found here:

Workers Compensation Statute of Arizona