Who Needs Workers' Comp in Arizona?
Under Arizona Revised Statutes Title 23, Chapter 6, all employers with one or more employees must carry workers' compensation insurance. This includes full-time, part-time, temporary, and seasonal workers. Sole proprietors and partners without employees are not required to carry coverage but can voluntarily elect to include themselves. Corporate officers are automatically included but may opt out.
Penalties for Non-Compliance
Arizona imposes fines of up to $1,000 for a first offense and up to $5,000 for subsequent violations. The Industrial Commission of Arizona (ICA) can issue stop-work orders that immediately shut down operations. Uninsured employers are personally liable for the full cost of employee injuries, including medical treatment, lost wages, and disability benefits. Willful failure to insure is a Class 6 felony.
SCF Arizona
SCF Arizona (formerly the State Compensation Fund) is a not-for-profit workers' comp carrier that serves as an option for Arizona employers. While not technically the insurer of last resort, SCF provides competitive coverage and is particularly popular with small businesses and those in higher-risk industries. Employers can also obtain coverage from any private carrier licensed in Arizona.
Common Arizona Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 9101 | Restaurant NOC | Medium |
| 0042 | Landscape Gardening & Maintenance | Medium |
| 5606 | Contractors — General | Medium-High |
| 5403 | Carpentry NOC | Medium-High |
| 5551 | Roofing — All Kinds | High |