Workman’s Compensation Insurance

Dear M & M:

Could you explain workman’s compensation insurance and if every employer in Arizona is required to carry workman’s compensation insurance on all employees whether they are full-time or part-time?


Dear Laura:

The information provided below comes from the Industrial Commission of Arizona’s web site “Under Arizona law, workers’ compensation is a “no fault” system in which an injured employee is entitled to receive benefits for an industrial injury, no matter who caused the job-related accident.

If an illness or injury is job-related, then the injured worker (also known as a claimant or applicant) receives medical benefits and may receive temporary compensation, if eligibility requirements are met. In some cases, a claimant may also receive permanent compensation benefits, “job retraining,” and supportive medical care.

There are some exceptions, however. For example, an employee is not entitled to workers’ compensation benefits for injuries that are “purposely self-inflicted.” In Arizona, it is mandatory for employers to secure workers’ compensation insurance for their employees, regardless of the number of workers they have, whether those workers are part-time, full-time, minors, aliens, or family members.

An employer may not require the employee to waive rights to workers’ compensation as a condition of employment, nor require an employee pay any portion of the employer’s workers’ compensation insurance premium. Workers’ compensation insurance is not required for an independent contractor, or a worker whose employment is both casual and not in the usual business of the employer.

Although a sole proprietor having no employees is not required to maintain workers’ compensation insurance on himself/herself, the sole proprietor may elect to secure coverage on themselves if they so choose. However, if there are any employees working for the sole proprietor, the sole proprietor must maintain workers’ compensation insurance on them.

If an L.L.C. or corporation employs one or more employees, it is required to obtain workers’ compensation insurance for its employees. Employers who meet certain requirements can also apply to the ICA for permission to be self-insured for workers’ compensation.” – ICA-

Remember, there are exceptions to any rules and ongoing changes happen continually. As always, it is strongly recommended that you consult with a competent attorney familiar with this area of the law for any legal advice based on your individual business or the facts pertaining to any particular legal issue you might have concerning job related injuries.

Workers’ compensation insurance can be obtained from an insurance company licensed to issue workers’ compensation insurance in the State of Arizona. For a listing of these companies you may contact the Arizona Department of Insurance at (800) 325-2548 or go online at the following website to obtain information;

To contact the Industrial Commissions of Arizona for more information on workman’s compensation laws in Arizona you can call them at (602) 542-4661, visit their website address at:  or contact them at their Phoenix Office: 800 West Washington St. – P.O. Box 19070 – Phoenix, Arizona 85005-9070.


To ask your questions: Call the Small Business Development Center(SBDC) at Cochise College (520)-515-5478 or email or contact the Sierra Vista Economic Development Foundation(EDF) at 520-458-6948 or email


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