When do I need workers comp for my employees in Arizona?

Owning a business in Arizona may require workers compensation insurance, but that does not mean you must purchase the coverage as soon as you get the company started. Depending on the company and your goals, the appropriate timing to purchase the policy may vary.

Before Hiring Employees

If you are planning to hire an employee, then you may need to start considering coverage and comparing your options. Even though it is not required to purchase workers compensation in Arizona until after you have hired an employee, having the coverage and getting ready to hire employees can help prevent any complications when it comes to coverage and getting started.

As a general rule, you will need the insurance as soon as you hire a single employee within the state.

After Hiring Workers

There are times when you may not be sure if you need to hire a worker. As a result, you may not feel comfortable buying coverage that you have not determined is necessary for your business.

In this situation, you will want to obtain coverage as soon as you hire a single employee. The state laws require that you maintain coverage as long as you have one employee. There are a few exceptions, such as working partners or domestic servants, but you should expect to purchase the policy if you have hired any employees. Even one worker requires some coverage that is appropriate based on the risks associated with your business.

It is important to protect your employees, even if you have only hired a single individual. The appropriate coverage and the timing can depend on the situation, but you will usually need the coverage before your new employee starts working. Contact us to speak to an agent to learn more.