Phoenix worker’s compensation insurance covers your employees’ medical expenses and part of their lost wages if they are injured or disabled in the course of their employment. Not to be confused with disability insurance which pays out regardless of when or where the insured is injured or disabled, workers’ compensation insurance pays workers who are injured on the job. In Arizona, workers’ compensation is required for all businesses that have employees and is intended as a “no fault” system to make sure workers receive fair medical treatment and financial compensation for workplace injuries and illness.
How Premiums are Determined
Premiums for workers’ compensation insurance will depend on the type of business looking for the policy. A restoration company in Chandler will most likely be looking at a higher workers’ compensation premium than a financial advisor in Peoria due to the greater risks in the workplace for the employees of the restoration company. The amount of payroll will also be a contributing factor along with how each employee is classified based on the nature of his or her job. In the example of the restoration company, an employee who only answers phones and does general administrative work will generally be less expensive to insure given equal salaries than a tech who is in the field doing the restoration work. Overall, this is a straightforward concept. If you do risky types of work such as roofing, electrical work or HVAC, then you should expect to pay a higher premium than those who are in a less risky industry as their employees are less likely to be injured on the job.
Types of Markets
As has been pointed out, different types of businesses include different risks and those risks fit different market types. A contractor business that is brand new may only have access to the assigned risk markets which are more expensive than a standard market that can be bundled with the other insurance lines it needs, but it may be eligible after a few years to move to a different type of market. Typically, low risk industries will have access to standard markets from day 1 as long as the carrier allows for new businesses for this type of product. Those that are considered middle or high risk may have options in standard markets if their size justifies the risk to the carrier, but this size is usually only found with established companies. Whether big or small, established or a new business, the Phoenix commercial insurance specialists at Smart Move Insurance will find the right workers’ compensation market and coverage for your Phoenix business.