As a business employer in the state of Arizona, you must provide your employees with insurance that covers workers’ compensation. It’s a system that adheres to the “no-fault” principle in the Grand Canyon State, meaning that workers who get injured will receive compensation and medical benefits, regardless of the cause of the job-related accident.
With workers’ compensation, any Arizona employee who gets sick or hurt while performing their respective duties will receive the following benefits:
- Coverage for any medical expenses
- Temporary compensation for wages if they require time off to heal
- Job retraining or permanent compensation for serious injuries
Industrial Commission of the Arizona state:
The ICA or Industrial Commission of Arizona handles any workers’ compensation claims. Initially started back in 1952, the organization has two primary divisions: the ALJ or Administrative Law Judge and the Claims Division. The latter generally oversees the insurance agencies that process the injured workers’ claims. They also ensure that the workers receive the appropriate benefits under Arizona’s law for workers’ comp.
The Claims Division’s staff provides general help and not necessarily legal advice. They can address any concerns or inquiries you may have about the rules of workers’ compensation. But once they receive a hearing request, the case then moves to the ALJ, who handles all disputes between the insurance carriers, employers, and claimants. The disputes usually involve:
- Loss of capacity to earn
- Reopening of any existing claims
- Supportive care
- Continuing benefits
- Compensability
Rates and coverage:
Under the law, businesses with more than one worker must have workers’ compensation in Arizona. Typically, they should cover all medical costs associated with the healing from the illness or injury. It should also include some wages missed while the workers are recovering. The requirements must also cover both part-time and full-time workers. However, some won’t need workers’ compensation:
- Casual employees whose job isn’t standard for the regular operations of the business
- Domestic workers who do their job from within a home
- Independent contractors
Partners and sole proprietors without employees will also have workers’ comp exemptions. However, they have the option to get it if they want to. All corporate officers in a business will need the coverage. But keep in mind that the rate and premiums will differ depending on the industry or field. In Arizona, multiple factors affect a premium, class codes being one of them. Class codes are essentially the level of risk workers face doing their job.
Arizona coverage for workers’ compensation
Workers’ compensation generally covers the following in Arizona:
- Injuries or accidents that happen when at the job
- Missed wages for time missed during recovery
- Any ongoing care that’s required due to severe injuries
- Illnesses that come from any exposure to substances or working conditions
- Death benefits and funeral costs for the employee who passes away due to work-related incidents
Conclusion
Workers’ compensation insurance is, in many ways, essential for a business to operate within legal boundaries. While there are undoubtedly exceptions, more often than not, it’s a necessity, especially in Arizona. So make sure that you get the right insurance policy for your business before you begin your operations.