Arizona Workers Compensation Insurance cost is rising but as a small business owner you have to do everything you can to protect you company are your employees. Arizona Workers Compensation Insurance covers protects employees and employers alike if someone is injured or contracts and illness while working on the job. Arizona Workers Compensation Insurance requires that the company or the insurance company to pay for medical and wage benefits if an accident occurs. Arizona law can change very regularly, so it is a good idea to have a partner on your side to help when problems may come up.
Does My Company Require Arizona Workers Compensation Insurance?
If an employer regularly hires workers in its business then the employer is required to carry Arizona Workers Compensation insurance regardless of the number of workers they have, whether those workers are part-time, full-time, minors, aliens, or family members. Arizona 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. Also, Workers Comp Insurance is not required for a domestic servant who works in your home.
Arizona Workers Compensation Benefits
Under Arizona law an injured or ill employee is eligible to receive full medical coverage, with no limits on time or money. In Arizona Workers Comp the employer is able to choose the attending doctor, but the employee is able to choose the doctor otherwise.
An employee qualifies for temporary total disability if they are out of work for more than 7 days. At that point the employee is able to receive a percentage of their weekly wage, up to 2/3 the amount. The payments with keep being sent every 2 weeks until the employee is released to work by the doctor.
Permanent Disability will work a lot in the same way as temporary disability. The injured employee will receive a percentage of their wage for a determined amount of time or until a lump sum is paid out.
Arizona Workers Comp benefits are given to the employees dependents upon the event of death. The dependents will receive the wage benefits on the same schedule as if the employee was alive.
What if my Company Does Not Have Adequate Workers Compensation Insurance?
If your company does not have adequate Arizona Workers Comp Insurance and an employee is injured on the job, that employee can choose to file a civil suit against or or file a compensation claim. If a claim is filled with the state, the state will pay the medical benefits and wages out of the special fund. The fund will seek reimbursement from your company plus an interest penalty of 10%.
If you are found to not have Arizona Workers Compensation Insurance your company can face a $1,000 penalty whether an employees files a claim or not. The penalty is increased to $5,000 for a second instance of being uninsured within a five-year period and $10,000 for a third instance in a five-year period.
Along with the fines and possible civil suits, if your company does not have Workers Compensation coverage a Superior Court Order can require you to cease operation. You can also be subject to a class 6 felony.
Do you have questions about Arizona Workers Compensation Insurance?
To find out how your company can save time and money, speak to a Workers Compensation specialist at 1-800-253-7040.
