Arizona workers' comp and liability insurance

Who must carry workers' comp in Arizona

Every Arizona employer with workers regularly in its employment must carry workers' compensation (ARS 23-902); domestic servants are exempt. LLC members and corporate shareholders who own less than 50% are employees. Owners of 50% or more, sole proprietors and partners are covered only if the carrier accepts them by endorsement. Coverage is written by private carriers, and Arizona uses NCCI loss costs; the Department of Insurance and Financial Institutions approved a 6.7% loss cost decrease effective January 1, 2026.

Penalties for going without coverage

• An uninsured employer loses its legal defenses if an injured worker sues, and the worker can claim from the state's special fund (ARS 23-907)
• Civil penalties of $1,000, rising to $5,000 for a second failure and $10,000 for a third within five years
• A court injunction to stop doing business, sought by the Industrial Commission

Licensing Arizona care providers

Home health agencies, hospice service agencies and assisted living homes and centers are licensed by the Arizona Department of Health Services as health care institutions. Home health and hospice agencies pay a $50 application fee plus a $482 license fee (R9-10-106, effective January 3, 2026), and assisted living homes pay $370 plus $98 per bed. Arizona's licensing rules don't set insurance minimums. Non-medical home care isn't a licensed category, but businesses that don't hold another license must give each client an annual disclosure of background checks, training, services and costs (ARS 36-144).

Coverage we build for Arizona agencies

• Workers' compensation for caregivers, nurses and office staff, including owner endorsements where needed
• General and professional liability at the limits payers, AHCCCS contracts and referral partners require
• Abuse and molestation coverage for in-home and residential care
• Hired and non-owned auto for staff driving to clients across large service areas