Workers' comp rates in Arizona depend on your industry and team size. Get quick answers to coverage questions below.
Best Workers' Comp Insurance in Arizona
With rates starting at $5 monthly, ERGO NEXT, The Hartford and Simply Business offer the cheapest and best workers' comp insurance in Arizona.
Get matched to top Arizona workers’ comp insurance providers and find your ideal coverage.
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Updated: March 27, 2026
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Best Arizona Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Arizona?
ERGO NEXT offers the top cheap workers' compensation insurance in Arizona. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- ERGO NEXT: $65
- The Hartford: $65
- Simply Business: $68
- Coverdash: $69
- biBerk: $71
Is workers' comp insurance required in Arizona?
Arizona mandates workers' compensation insurance for most employers with one or more employees, including part-time and seasonal workers. Exemptions include sole proprietors without employees, independent contractors and certain agricultural workers. Non-compliance results in penalties up to $1,000 per employee plus daily fines, potential criminal charges and unlimited liability for workplace injuries.
How much does workers' comp insurance cost in Arizona?
Workers' compensation insurance costs in Arizona run about $35 monthly per employee for small businesses. Costs depend on your industry and payroll size. Speech therapists pay the least at roughly $3 per employee monthly, while roofers face the steepest rates at around $396 per employee monthly.
How do you get workers' comp insurance in Arizona?
You can get workers' comp coverage in Arizona by:
- Purchasing from licensed private insurance companies operating in the state
- Obtaining coverage through the assigned risk pool if standard market options aren't available
- Self-insuring if your business meets Arizona's strict financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Arizona workers' comp insurance cover?
Workers' compensation in Arizona covers:
- Medical expenses for work-related injuries and occupational illnesses
- Wage replacement benefits during recovery periods
- Permanent disability compensation for lasting impairments
- Survivor benefits for families of workers killed on the job
Best Workers' Comp Insurance Companies in Arizona
ERGO NEXT tops MoneyGeek's Arizona workers' comp rankings for customer support and coverage options. The Hartford and Simply Business are close behind for small business owners.
| ERGO NEXT | 4.62 | $65 | 1 | 2 |
| The Hartford | 4.54 | $65 | 2 | 3 |
| Simply Business | 4.54 | $68 | 5 | 1 |
| Coverdash | 4.47 | $69 | 6 | 2 |
| biBERK | 4.44 | $71 | 2 | 5 |
| Nationwide | 4.43 | $77 | 2 | 4 |
| Progressive Commercial | 4.41 | $67 | 7 | 5 |
| Thimble | 4.40 | $67 | 8 | 5 |
| Hiscox | 4.38 | $68 | 4 | 6 |
| Chubb | 4.27 | $81 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Arizona
Select your industry and state to get a customized Arizona workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN ARIZONA
Explore the best business insurance providers in Arizona through our guides:
Best Arizona Workers’ Comp Insurance Company Reviews
Review our detailed analysis of the leading workers' compensation insurance providers in Arizona:
ERGO NEXT
Best Workers' Comp Insurance in Arizona
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$65We analyzed thousands of workers' compensation quotes from insurers operating in Arizona across 79 industriesWorkers' Comp Claims Process Score
3.9/5Rating from verified customer survey responsesWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend ERGO NEXT
The Hartford
Best Arizona Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.5/ 5
4.4/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$65We analyzed thousands of workers' compensation quotes from insurers operating in Arizona across 79 industriesWorkers' Comp Claims Process Score
4.5/5 (1st)Workers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2th)
Cheapest Workers' Comp Insurance Companies in Arizona
The Hartford delivers Arizona's most affordable workers' comp insurance at just $65 monthly ($776 annually), putting $5 back in your pocket each month compared to the state average of $70. That's a 7% savings for Arizona businesses. ERGO NEXT and Thimble round out the top three budget-friendly options, both offering competitive monthly rates under $68. The table below shows costs from all companies we analyzed.
| The Hartford | $65 | $776 |
| ERGO NEXT | $65 | $784 |
| Thimble | $67 | $804 |
| Progressive Commercial | $67 | $807 |
| Simply Business | $68 | $813 |
| Hiscox | $68 | $818 |
| Coverdash | $69 | $830 |
| biBERK | $71 | $857 |
| Nationwide | $77 | $921 |
| Chubb | $81 | $967 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Arizona by Industry
Thimble offers the lowest workers' comp rates for dental coverage at $10 monthly. Thimble dominates 8 industries including construction, retail and consulting. ERGO NEXT ranks second, leading 20 sectors like accounting, advertising and veterinary services across Arizona.
| Ad Agency | ERGO NEXT | $14 | $167 |
| Accountants | ERGO NEXT | $18 | $215 |
| Bakery | The Hartford | $47 | $561 |
| Automotive | The Hartford | $99 | $1,182 |
| Auto Repair | Simply Business | $133 | $1,601 |
| Barber | The Hartford | $13 | $150 |
| Bounce House | The Hartford | $36 | $427 |
| Beauty Salon | The Hartford | $13 | $153 |
| Cannabis | Nationwide | $87 | $1,041 |
| Candle | The Hartford | $35 | $416 |
| Coffee Shop | ERGO NEXT | $41 | $488 |
| Catering | The Hartford | $64 | $766 |
| Cleaning | The Hartford | $42 | $501 |
| Construction | Simply Business | $161 | $1,931 |
| Computer Programming | ERGO NEXT | $25 | $297 |
| Computer Repair | The Hartford | $21 | $254 |
| Contractor | ERGO NEXT | $145 | $1,735 |
| Consulting | The Hartford | $26 | $314 |
| Daycare | ERGO NEXT | $12 | $139 |
| Courier | The Hartford | $196 | $2,350 |
| DJ | Thimble | $12 | $147 |
| Dental | Thimble | $10 | $120 |
| Dog Grooming | Progressive Commercial | $57 | $685 |
| Dog Grooming | ERGO NEXT | $57 | $685 |
| Drone | ERGO NEXT | $24 | $283 |
| Electrical | The Hartford | $49 | $592 |
| Ecommerce | The Hartford | $19 | $227 |
| Excavation | ERGO NEXT | $93 | $1,110 |
| Engineering | The Hartford | $34 | $404 |
| Florist | ERGO NEXT | $54 | $653 |
| Gardening | ERGO NEXT | $41 | $492 |
| Food | Thimble | $37 | $438 |
| Food Truck | The Hartford | $39 | $466 |
| Funeral Home | Thimble | $23 | $276 |
| Handyman | Progressive Commercial | $84 | $1,013 |
| Hospitality | The Hartford | $61 | $728 |
| Home-based | The Hartford | $9 | $105 |
| Janitorial | ERGO NEXT | $43 | $519 |
| HVAC | The Hartford | $54 | $648 |
| Junk Removal | The Hartford | $122 | $1,462 |
| Jewelry | Thimble | $26 | $316 |
| Lawyers | The Hartford | $46 | $554 |
| Lawn/Landscaping | The Hartford | $33 | $396 |
| Marine | The Hartford | $135 | $1,619 |
| Manufacturing | The Hartford | $52 | $620 |
| Mortgage Broker | The Hartford | $12 | $147 |
| Massage | The Hartford | $13 | $150 |
| Nonprofit | The Hartford | $28 | $332 |
| Moving | ERGO NEXT | $226 | $2,706 |
| Party Rental | The Hartford | $32 | $385 |
| Painting | Simply Business | $123 | $1,470 |
| Personal Training | ERGO NEXT | $22 | $266 |
| Pharmacy | ERGO NEXT | $6 | $67 |
| Pest Control | The Hartford | $62 | $748 |
| Pet | Progressive Commercial | $27 | $327 |
| Pressure Washing | Nationwide | $87 | $1,048 |
| Photography | The Hartford | $15 | $180 |
| Physical Therapy | Simply Business | $6 | $71 |
| Plumbing | The Hartford | $57 | $685 |
| Restaurant | The Hartford | $54 | $648 |
| Real Estate | The Hartford | $27 | $322 |
| Roofing | Nationwide | $869 | $10,426 |
| Retail | Progressive Commercial | $31 | $371 |
| Retail | ERGO NEXT | $31 | $371 |
| Software | ERGO NEXT | $23 | $272 |
| Security | Simply Business | $46 | $547 |
| Snack Bars | Thimble | $38 | $456 |
| Speech Therapist | The Hartford | $5 | $62 |
| Spa/Wellness | ERGO NEXT | $15 | $179 |
| Tech/IT | Thimble | $24 | $283 |
| Startup | The Hartford | $11 | $136 |
| Travel | Thimble | $6 | $73 |
| Transportation | Progressive Commercial | $200 | $2,400 |
| Tree Service | ERGO NEXT | $193 | $2,315 |
| Veterinary | ERGO NEXT | $17 | $206 |
| Trucking | The Hartford | $231 | $2,767 |
| Tutoring | The Hartford | $9 | $105 |
| Wedding Planning | The Hartford | $24 | $294 |
| Window Cleaning | The Hartford | $185 | $2,218 |
| Welding | The Hartford | $100 | $1,202 |
| Wholesale | The Hartford | $35 | $418 |
How Much Is Workers' Comp Insurance in Arizona?
Arizona workers' comp insurance cost runs $70 monthly ($838 annually), slightly below the national average of $74. Industry rates vary, with speech therapists paying as little as $69 annually ($3 per employee monthly) while roofers pay up to $9,508 yearly ($396 per employee monthly).
| Accountants | $19 | $233 |
| Ad Agency | $15 | $182 |
| Auto Repair | $145 | $1,737 |
| Automotive | $111 | $1,331 |
| Bakery | $51 | $608 |
| Barber | $13 | $160 |
| Beauty Salon | $14 | $167 |
| Bounce House | $38 | $460 |
| Candle | $38 | $452 |
| Cannabis | $79 | $950 |
| Catering | $69 | $833 |
| Cleaning | $46 | $558 |
| Coffee Shop | $45 | $537 |
| Computer Programming | $27 | $323 |
| Computer Repair | $23 | $276 |
| Construction | $172 | $2,059 |
| Consulting | $29 | $346 |
| Contractor | $156 | $1,876 |
| Courier | $215 | $2,577 |
| DJ | $13 | $160 |
| Daycare | $13 | $153 |
| Dental | $11 | $128 |
| Dog Grooming | $61 | $732 |
| Drone | $25 | $305 |
| Ecommerce | $21 | $247 |
| Electrical | $54 | $651 |
| Engineering | $36 | $438 |
| Excavation | $101 | $1,209 |
| Florist | $59 | $704 |
| Food | $40 | $481 |
| Food Truck | $43 | $518 |
| Funeral Home | $25 | $306 |
| Gardening | $45 | $540 |
| HVAC | $59 | $709 |
| Handyman | $89 | $1,071 |
| Home-based | $10 | $114 |
| Hospitality | $67 | $798 |
| Janitorial | $46 | $557 |
| Jewelry | $29 | $344 |
| Junk Removal | $133 | $1,595 |
| Lawn/Landscaping | $36 | $428 |
| Lawyers | $50 | $604 |
| Manufacturing | $56 | $672 |
| Marine | $144 | $1,725 |
| Massage | $14 | $166 |
| Mortgage Broker | $13 | $158 |
| Moving | $247 | $2,959 |
| Nonprofit | $30 | $363 |
| Painting | $132 | $1,586 |
| Party Rental | $35 | $421 |
| Personal Training | $24 | $287 |
| Pest Control | $67 | $804 |
| Pet | $29 | $350 |
| Pharmacy | $6 | $73 |
| Photography | $16 | $195 |
| Physical Therapy | $7 | $78 |
| Plumbing | $61 | $732 |
| Pressure Washing | $80 | $958 |
| Real Estate | $29 | $343 |
| Restaurant | $60 | $720 |
| Retail | $33 | $396 |
| Roofing | $792 | $9,508 |
| Security | $50 | $596 |
| Snack Bars | $42 | $499 |
| Software | $25 | $301 |
| Spa/Wellness | $16 | $197 |
| Speech Therapist | $6 | $69 |
| Startup | $12 | $148 |
| Tech/IT | $26 | $312 |
| Transportation | $217 | $2,598 |
| Travel | $7 | $79 |
| Tree Service | $209 | $2,512 |
| Trucking | $257 | $3,086 |
| Tutoring | $10 | $115 |
| Veterinary | $19 | $223 |
| Wedding Planning | $27 | $324 |
| Welding | $111 | $1,338 |
| Wholesale | $38 | $458 |
| Window Cleaning | $199 | $2,383 |
Arizona Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Arizona:
Opioid Prescription Controls
Arizona's Opioid Epidemic Act requires physicians to check the Controlled Substances Prescription Monitoring Program before dispensing opioids and prohibits dispensing Schedule II opioids except for medical-assisted treatment. These 2018 measures aim to control escalating medical costs in the state workers' compensation system. Reducing opioid prescriptions lowers long-term treatment costs and prevents expensive addiction-related complications.
10-Year Rate Decline Trend
Arizona experienced its 10th straight year of workers' comp rate decreases in 2024, with a 10.3% reduction taking effect January 1, 2024. The NCCI attributes the drop to fewer lost-time claims relative to premiums and lower medical costs per claim. For small business owners, that sustained improvement translates to lower premiums.
Owner/Officer Minimum Payroll Requirements
Sole proprietors and partners who include themselves on a policy must use a minimum payroll of $31,200 for rating purposes. Corporate officers who aren't excluded face a minimum of $65,000 and a maximum of $260,000. The cap protects high-earning officers from outsized premium calculations, while the minimums give insurers a predictable baseline for owner coverage.
Competitive State Fund Structure
Arizona runs its state fund through CopperPoint Mutual, which competes alongside roughly 325 private insurers. That competition pushes carriers to sharpen their rates and service to win business, giving small business owners real leverage when shopping for coverage.
Annual Benefit Cap Adjustments
Arizona law requires annual indexing of the maximum average monthly wage using the Bureau of Labor Statistics Employment Cost Index. The 2025 cap sits at $5,906.55. The formula gives insurers a reliable way to forecast claim costs and set stable premiums, while the cap itself prevents wage replacement payouts from spiking rates unexpectedly.
Settlements Policy
Since 2018, Arizona has allowed full and final settlements for workers' comp claims with Industrial Commission of Arizona approval. Settlements must account for projected future medical costs and include Medicare interest protections. Closing claims this way cuts administrative costs and lets insurers clear reserves faster, both factors that support lower premium pricing.
Benefit Exclusions
Most heart-related and mental health injuries don't qualify for workers' comp benefits in Arizona. Claims can also be denied when injuries result from violating company policy. Those exclusions reduce overall payout risk for insurers, which helps Arizona maintain lower premiums than states with broader benefit requirements.
How Much Workers' Comp Insurance Do I Need in Arizona?
Arizona law requires workers' compensation insurance for all employers who regularly employ one or more workers, full-time or part-time. You don't need to worry about coverage limits because the state sets all coverages. Your rate gets calculated automatically based on your payroll and other factors.
Arizona operates a "no-fault" system where injured employees receive benefits regardless of who caused the accident. Willfully and knowingly failing to carry required workers' compensation coverage is a Class 6 felony, punishable by fines up to $10,000 and up to one year in prison. The ICA can seek an injunction to cease business operations until you obtain coverage.
Arizona Workers' Comp Insurance Exemptions
While you're required to have coverage in Arizona, some business categories are exempt from workers' comp requirements:
- Sole Proprietors: Sole proprietors who don't hire employees are automatically exempt from workers' compensation requirements, though coverage becomes mandatory once they hire even one employee.
- Partners in Partnerships: Partners in a partnership are automatically excluded from workers' compensation coverage, even when their employees are covered, but can elect to be covered by notifying the insurance carrier in writing.
- LLC Members (Optional Exemption): LLC members are automatically included in workers' compensation policies but can choose to reject coverage in writing by filing formal rejection with the employer and insurance carrier.
- Corporate Officers (Optional Exemption): Corporate officers are automatically included in coverage but inactive officers can opt out by completing the Employee's Notice of Rejection of Terms of the Arizona Workers' Compensation Law form twice and filing with the insurance provider.
- Domestic Servants: Arizona law doesn't require workers' compensation coverage for domestic servants working in private homes, though employers can voluntarily provide coverage for household employees like nannies, housekeepers or gardeners.
- Casual Employees: Workers employed on a casual basis whose work isn't in the usual course of the employer's trade, business or occupation are exempt when both conditions are met.
- Independent Contractors: Independent contractors are exempt from coverage requirements, with classification determined by who has the right to control the work based on factors including control over work methods, duration of employment and whether workers supply their own tools.
- Employees Covered by Federal Law: Workers eligible for compensation under federal law, including maritime workers and railroad employees, are exempt from Arizona's workers' compensation requirements.
- Tribal Nation Employees: Employees of Tribal Nations are covered by the tribe's own insurance system and fall outside Arizona workers' compensation jurisdiction due to tribal sovereignty.
- Out-of-State Workers (Temporary): Workers from another state and their employers are exempt while temporarily working in Arizona if the employer provides workers' comp coverage under another state's laws that covers employment in Arizona and reciprocal exemptions exist.
- Voluntary Coverage Rejections: Employees can voluntarily reject workers' compensation coverage by completing a signed and dated written rejection filed with the employer before any injury occurs, though they can rescind the rejection in writing at any time before suffering a work-related injury.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Arizona exempts workers covered by federal compensation programs from your state requirements. If you employ federal government workers, they get benefits through the Federal Employees' Compensation Act instead of Arizona workers' comp. Railroad employees operating in Arizona receive coverage under the Federal Employers' Liability Act. Maritime workers at Arizona ports and waterways fall under the Longshore and Harbor Workers' Compensation Act. These federal programs take precedence over Arizona's system, so you don't need to purchase Arizona workers' comp insurance for federally-covered employees working at your business.
How to Get the Best Workers' Comp Insurance in Arizona
Here's how to get workers' comp insurance with the right provider at the best price.
- 1Determine if you need workers' comp coverage in Arizona
A sole proprietor working alone doesn't need coverage, but hiring even one employee triggers the requirement. Check whether exemptions apply to your business structure before shopping. Arizona courts use the "right to control" test to determine if someone qualifies as an independent contractor; examining who controls work methods, supplies tools and sets work duration. Misclassifying employees as contractors can result in retroactive premium charges and penalties.
- 2Gather your business information
You'll need your employee count, annual payroll and NCCI classification codes to get accurate quotes. Arizona uses the National Council on Compensation Insurance system with specific codes for each industry. Getting payroll or classification wrong can mean surprise audit bills or discovering you're underinsured when you file a claim. Construction businesses need extra attention since different trades carry different risk classifications and rates.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three insurers, including CopperPoint Mutual (Arizona's state fund), which competes directly with private carriers to keep market rates in check. Arizona saw a 10.3% rate decrease in 2024, continuing a decade-long decline, so comparing quotes now puts you in a strong position. Reviewing multiple options helps you weigh business insurance cost against coverage rather than defaulting to the cheapest policy.
- 4Research providers with industry experience
Once you have quotes, prioritize insurers who understand your specific business risks and classification codes. Construction companies should look for carriers familiar with high-risk industries and the Industrial Commission of Arizona requirements. Manufacturers benefit from insurers experienced with repetitive injury claims, and restaurants need carriers who understand high turnover and burn-related injuries. Cheap business insurance rates mean little if your insurer doesn't know your industry.
- 5Evaluate your top provider options
Look into each provider's track record to determine which offers the best business insurance for your needs:
- Check claim processing times, customer service ratings and complaint history with the Arizona Department of Insurance and Financial Institutions.
- Verify the insurer's familiarity with Arizona's physician fee schedules and pharmaceutical fee controls.
- Ask about safety consultation services and return-to-work programs, which can lower your experience modification rate.
- Confirm the carrier understands Arizona's opioid prescription controls and how they manage medical costs under state guidelines.
- 6Review and purchase your workers' compensation policy
Read policy terms carefully, focusing on coverage limits, exclusions and renewal conditions. Pay-as-you-go structures base premiums on actual payroll rather than estimates, which helps with cash flow and reduces audit risk. Confirm your policy meets all Industrial Commission of Arizona requirements. If you're a sole proprietor, partner or LLC member, ask about owner inclusion or exclusion options; Arizona allows these exemptions with proper documentation.
- 7Reassess before annual renewal
Pull your loss runs and review your experience modification rate before renewal. If your claims history has improved, shop competing quotes to make sure your renewal rate reflects that. Payroll changes, new hires or expanded operations can shift your classification codes and premiums, so update your insurer before the policy renews rather than after an audit flags the discrepancy.
Best Arizona Workers' Compensation Insurance: Bottom Line
ERGO NEXT, The Hartford and Simply Business rank as Arizona's top workers' comp insurers. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Arizona Department of Health Services. "Understanding and Using the Guidelines." Accessed April 5, 2026.
- Arizona Department of Insurance and Financial Institutions. "Workers' Compensation Rates Decrease for 10th Consecutive Year." Accessed April 5, 2026.
- Industrial Commission of Arizona. "Fee Schedule Frequently Asked Questions." Accessed April 5, 2026.
- Industrial Commission of Arizona. "Claims - AMW Statutory Maximum Information Page." Accessed April 5, 2026.