NEXT is Arizona’s best worker’s compensation insurance provider, scoring almost a perfect rating with 98 out of 100 points. The company offers reliable customer service, very low workers' comp rates, and a large coverage selection. However, Pie and biBerk are good runners-up that you should also consider for coverage.
Cheapest Workers' Comp Insurance in Arizona
Updated: June 4, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Pie, biBerk, Thimble and The Hartford are the best cheap workers' comp insurance providers in Arizona.
For most small businesses in Arizona, workers' compensation coverage costs around $663 per year or $57 per month.
Workers' comp insurance is required in Arizona for all companies with employees to cover expenses from employees sustaining injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Arizona
| NEXT | 98 | $113 |
| Pie | 89 | $161 |
| biBerk | 89 | $225 |
| The Hartford | 88 | $241 |
| Nationwide | 86 | $290 |
| Thimble | 85 | $235 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Great reputation
Most affordable rates overall
Business insurance only focus
cons
Slower quotes process
May be less affordable for larger businesses
COMPANY HIGHLIGHTS
NEXT offers the most affordable workers' comp insurance in Arizona and the 2nd best customer service experience overall with a rating of 4.7 out of 5.0. To sweeten the deal even further, buying multiple policies with the company can earn you a discount of up to 10%
How Much Is Workers' Comp Insurance in Arizona?
Depending on the size of your Arizona-based business, workers' comp rates vary anywhere from $663 to $6,440 per year. However, this only represents software development companies, and your rates will change depending on thenumber of employees, the risk of your industry, the work your employees do individually, and your claims history.
| Larger small businesses | $546 | $6,440 |
| Businesses with five or less employees | $57 | $663 |
| Medium-size small businesses | $132 | $1,551 |
Factors That Impact Workers’ Compensation Costs in Arizona
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs including the following: industry type, business size, and claim history.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium.
Arizona Workers' Comp Insurance: Buyer's Guide
We've broken down how to get the best workers' comp coverage, who needs it, and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Arizona
Below we detail the best steps to take to ensure you get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
You can get quotes through online comparison sites rather than speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Arizona?
All businesses in the state are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN ARIZONA
Employers in the Arizona must adhere to workers' comp laws. If they don't, they could face hefty penalties:
- $1,000 first offense fine - First violation carries a $1,000 penalty for not having required coverage.
- Escalating penalties - $5,000 for second violation and $10,000 for third violation within five years.
- Class 6 felony charges - Failure to carry required workers' compensation can result in felony charges with possible prison sentence from 4 months up to 2 years.
- Superior Court injunctions - Arizona Superior Court can issue injunctions requiring employers to cease operations until they obtain required coverage.
- Special Fund reimbursement - Employers must reimburse the Industrial Commission's Special Fund Division for all benefits paid plus an additional 10% fee (or $1,000, whichever is greater).
- Loss of lawsuit protection - Uninsured employers face civil lawsuits from injured employees with presumption of negligence against the employer.
What Does Workers’ Compensation Insurance Cover in Arizona?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits, lost wages and more for impacted workers, paying out 66% of weekly wages according to Arizona law.
Best Workers' Compensation Insurance Arizona: Bottom Line
In Arizona, the top three workers' comp insurance providers are NEXT, Pie, and biBerk. NEXT leads with a high score and an affordable average monthly premium of $113. Pie and biBerk follow, offering competitive rates. Consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Arizona: FAQ
Below are answers to frequently asked questions about Arizona workers' comp insurance from our experts.
Which company has the best workers’ compensation insurance in Arizona?
In Arizona, NEXT stands out for providing exceptional workers' compensation insurance with average monthly costs of $113 for medium-sized small businesses. Keep in mind, the ideal coverage for your business will hinge on factors like your specific industry, workforce size, and unique state mandates.
Which company has the cheapest workers’ compensation insurance in Arizona?
Pie is the most cost-effective workers' comp insurance provider in Arizona for businesses with 5 or fewer employees. For medium-sized small businesses, Pie offers the cheapest solutions, and for larger small businesses, Pie provides the most affordable options.
Does Arizona require businesses to have workers’ compensation insurance?
Yes, Arizona mandates that all businesses carry workers' compensation insurance coverage.
In Arizona, obtaining workers' comp insurance is compulsory for every business, with limited exceptions for sole proprietors, partners, and fully-owned corporate officers who may choose to exclude themselves.
How much does workers’ compensation insurance cost in Arizona?
In Arizona, medium-sized small businesses with around 20 workers commonly incur a monthly workers' compensation insurance premium of $132.
How We Rated Workers' Comp Insurance Companies in Arizona
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Customer Reviews." Accessed April 6, 2024.