Best Workers'CompensationArizonaBest Workers' Compensation Insurance in Arizona (2023)
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To determine the best workers' compensation insurance in Arizona, we considered factors like affordability, customer satisfaction, financial stability and the online quote process. The top-ranking company in the state is biBERK.
Small business owners need workers' compensation insurance to comply with state regulations and provide coverage for employees' work-related injuries and illnesses. It safeguards businesses by covering medical expenses, rehabilitation costs and lost wages, ensuring a financially protected workplace.
Best Workers'CompensationArizonaBest Workers’ Compensation Insurance in Arizona
Best Workers’ Compensation Insurance in Arizona
With a remarkable MoneyGeek score of 93 out of 100, biBERK claims the title of the best overall company for workers' compensation insurance in Arizona. It costs roughly $116 per month. Business owners can benefit from biBERK's exceptional performance and affordable rates when seeking reliable workers' compensation insurance in the state.
How was this MoneyGeek score calculated?
1
biBERKBest Overall in Arizona
Score:93
- Policies average $116 monthly
- Financially stable
- Good customer service
More About biBERK
biBERK excels in financial stability with a high AM Best rating, assuring policyholders that they can have confidence in the company's ability to meet its financial obligations. Additionally, biBERK earns positive customer satisfaction ratings, reflecting their commitment to excellent service.
While their cost score may not be the best, biBERK offers competitive rates for comprehensive workers' compensation coverage. Obtaining an online quote from biBERK may take a little longer than other insurers, as seen by their average time to get a quote.
2
Pie
Score:92
- Affordable rates of $85 per month
- Fast quote processing
More About Pie
Pie excels in affordability with a perfect cost score, ensuring that small business owners can purchase workers' compensation insurance without breaking the bank. While their AM Best rating suggests relatively lower financial stability, Pie makes up for this with a streamlined online quote process, allowing businesses to obtain quotes quickly and efficiently. In fact, the company has the fastest quote system out of all the insurers we evaluated.
3
The Hartford
Score:91
- Costs around $128 per month
- Financially stable
- Excellent customer support
More About The Hartford
The Hartford prioritizes customer satisfaction, which is seen in their impressive complaint score. With a commitment to addressing policyholder needs promptly, The Hartford ensures a positive experience for their customers. Additionally, their solid AM Best rating demonstrates financial strength and stability.
While their cost score may be lower compared to others, businesses can still rely on The Hartford for comprehensive workers' compensation coverage. Obtaining an online quote from The Hartford takes just over two minutes.
4
Next
Score:89
- Rates of around $146 monthly
- Excellent customer service
- Fast quotes
More About Next
Next prioritizes customer satisfaction, delivering a positive experience to policyholders with one of the lowest complaint rates. Their commitment to addressing customer needs and concerns sets them apart.
Although their cost score may be lower compared to other companies, Next offers an accessible online quote process, enabling businesses to obtain quotes quickly. It's important to consider Next's subpar financial stability, indicated by its AM Best rating, while evaluating the company's suitability for comprehensive workers' compensation coverage.
5
Nationwide
Score:87
- Costs around $155 monthly
- Good financial stability
- Great customer support
More About Nationwide
Nationwide demonstrates commendable financial stability, ensuring businesses can have confidence in the insurer’s ability to fulfill obligations. Their positive customer satisfaction scores reflect Nationwide’s commitment to providing excellent service.
This insurer has the most expensive premiums out of all the insurers we reviewed. It also has the slowest quote processing time. However, it is a well-known and dependable insurer that can meet the needs of its policyholders.
6
Thimble
Score:87
- 127 monthly premium
- Financially stable
- Good customer support
More About Thimble
Thimble demonstrates financial strength with a strong AM Best rating, ensuring policyholders know their eligible claims will be paid out. It also has a reasonably fast quote system, averaging just over one minute and 30 seconds to provide an estimate to potential policyholders.
This insurer has fairly high premiums, making it a more expensive option than the companies that topped our list. It also could use improvement in terms of customer satisfaction as its complaint ratio is higher than other companies we reviewed.
Cheapest Workers’ Compensation Insurance in Arizona
The cheapest workers' compensation insurance provider in Arizona is Pie, with an average monthly premium of just $85. This affordability is particularly beneficial for businesses with 20 employees and an annual payroll of $1,250,000. The number of employees and payroll costs significantly impact insurance costs, making Pie an attractive option for small businesses looking to manage their expenses without compromising coverage.
Pie
Pie excels when it comes to offering the most affordable policies in Arizona. With an average monthly premium of $85, Pie offers cost-effective coverage, making it an attractive choice for small businesses in the state.
However, in terms of financial stability, Pie's AM Best rating is relatively lower, indicating a potential area for improvement. It makes up for this with a fast quote system, allowing you to get an estimate of your premiums in under one minute.
We ranked companies based on the average monthly cost to determine the cheapest insurer, but it's important to note that the most affordable option for your specific small business may vary depending on other factors such as industry, location and coverage needs.
Below is a table showcasing the annual and monthly costs for insuring a business with 20 employees, ranked by monthly cost. This provides a comprehensive overview of the pricing options available from the companies we analyzed in Arizona.
Best Workers’ Compensation Insurance for Micro Businesses in Arizona
For businesses with five employees, biBERK emerges as the top-ranking company, offering a monthly premium of $41. This premium is based on an annual payroll amount of $312,500.
Businesses with one to nine employees are typically considered micro businesses. While employee count does impact the cost of workers’ compensation insurance, payroll generally has a more significant influence on premiums.
biBERK
biBERK excels in the cost category for micro businesses. with a monthly premium of $41. This is the second-cheapest rate of all the companies we evaluated.
However, the company's lowest score is in online quotes, where it earned the second-worst score. Fortunately, biBERK is very financially stable and offers great customer support, making it an excellent option for businesses with less than 10 employees.
Best Workers’ Compensation Insurance for Midsize Businesses in Arizona
For businesses with 100 employees, Pie emerges as the top-ranked company, offering a monthly premium of $370. This rate is based on an annual payroll amount of $6,250,000.
While employee count does influence the cost of workers' compensation insurance, it's important to note that payroll typically has a more significant impact on premiums.
Pie
Pie stands out in the cost category for mid-sized businesses, earning a perfect score of 5 out of 5. This emphasizes the company’s dedication to providing affordable workers' compensation insurance options for businesses with 100 employees.
With Pie, you can enjoy a fast quote process that enables you to get an estimate of your rates in around 59 seconds. However, its lowest score lies in its financial stability, which could leave policyholders concerned that the insurer might not be able to pay out eligible claims.
How Much Is Workers’ Compensation Insurance in Arizona?
The average monthly cost of workers' compensation insurance in Arizona for a business with 20 employees is approximately $126. Compared to the national average of $168 per month, the average cost in Arizona is lower, providing potential cost savings for businesses.
We evaluated the following limits to get these averages:
- $1 million per accident
- $1 million per employee
- $1 million total policy
A total policy limit refers to the maximum coverage amount available for all claims combined. A $1 million per accident limit indicates the maximum amount an insurer would cover for a single incident, while the $1 million per employee limit represents the maximum coverage per employee. These limits provide a level of financial protection for the business owner, ensuring coverage for accidents and injuries within the specified limits.
Below, you will find a table that showcases the average cost of workers' compensation insurance for businesses with five, 20 and 100 employees, providing a comprehensive overview of the pricing options available. Employee count and payroll are huge determinants of the cost of workers' compensation insurance.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Arizona
There are many factors affecting the cost of workers’ compensation insurance in Arizona, including the following:
Payroll costs
The total wages and salaries paid to employees impact premiums since higher payroll costs increase liability for insurers. The average rate charged for every $100 of payroll in Arizona is $0.87. This is one of the cheapest rates in the country.
Number of employees
How many employees you have directly influences coverage costs, with higher employee counts leading to increased premiums due to greater risk exposure.
Employee class code
An employee class code is assigned to each job to determine risk level, affecting premium rates. Higher-risk occupations, like construction, have higher class codes and insurance costs.
Previous claims
Insurance costs can be impacted by a business's claims history. More claims or costly claims may result in higher premiums, while a clean claims history can lower costs. There were 57,1000 nonfatal injuries and illnesses in the private sector in Arizona in 2021. There were over 2.6 recordable cases of nonfatal illnesses and injuries in the private industry across the country during the same time period. This low ratio contributes to Arizona’s lower workers’ comp rates.
Do You Need Workers’ Compensation Insurance in Arizona?
Workers' compensation insurance requirements in Arizona mandate that most businesses with one or more employees must carry this coverage.
However, there are a few exemptions to the workers' compensation coverage in Arizona. Independent contractors, casual employees and domestic employees might be exempt from these requirements.
It is important for employers to ensure compliance with workers' compensation insurance requirements in Arizona to financially protect their employees and themselves in the event of workplace injuries or illnesses. By providing workers' compensation insurance, employers can help cover medical expenses, lost wages and rehabilitation costs for employees who are injured or become ill due to work-related circumstances.
WORKERS’ COMP PENALTIES IN ARIZONA
Employers in Arizona who fail to provide legally required workers' compensation insurance or comply with workers' compensation laws may face penalties including:
- A civil penalty of up to $1,000 for the first violation
- Penalties of up to $5,000 for a second violation in five years
- Penalties of up to $10,000 for a third violation in five years
What Does Workers’ Compensation Insurance Cover in Arizona?
Workers' compensation insurance provides important benefits to employees who experience work-related injuries or illnesses. Since the employer is the policyholder, this coverage ensures their financial protection by paying for employees’ medical care expenses if they are injured or become ill on the job. This can include treatments, hospitalizations, medications and rehabilitation services, relieving employees of significant financial burdens.
In cases of temporary or permanent disability resulting from work-related incidents, workers' comp insurance offers disability benefits. This covers lost wages for employees unable to work due to work-related injury or illness, providing them with income during recovery. Additionally, workers' comp insurance may cover vocational rehabilitation services, aiding employees in transitioning to suitable employment if they can't return to their previous job.
Ultimately, workers' compensation insurance provides essential financial protection, ensuring access to medical care, income replacement and rehabilitation services for employees affected by work-related injuries or illnesses.
Workers’ Comp Resources for Employees in Arizona
The Department of Labor's Office of Workers' Compensation Programs (OWCP) oversees workers' compensation in Arizona. Employees in Arizona who need to file a workers' compensation claim would typically follow a few steps.
First, they should report the injury or illness to their employer as soon as possible. Then, they need to complete the necessary claim forms, which can be obtained from their employer or the state's workers' compensation department. The completed forms should be submitted to the employer's workers' compensation insurance carrier.
For more detailed information on filing a claim and the specific requirements in Arizona, employees can visit the Arizona Industrial Commission (AIC) website. It provides comprehensive information and resources related to workers' compensation claims for employees in the state.
Frequently Asked Questions About Workers’ Compensation Insurance in Arizona
To help you decide on the best workers’ compensation insurance for your company, we answered a few questions for business owners in Arizona.
About Melissa Wylie
sources
- Oregon.gov. "2022 Workers’ compensation premium index rates." Accessed May 30, 2023.
- State Board of Workers’ Compensation. "Employer Information." Accessed May 30, 2023.
- The Industrial Commission of Arizona. "Claims Division." Accessed May 30, 2023.
- The Industrial Commission of Arizona. "Workers’ Compensation Insurance." Accessed June 21, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 30, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 30, 2023.