Workers’ Compensation

A Workers’ Compensation insurance policy provides benefits to employees for injuries and illnesses arising out of and in the course of employment. The policy may provide payment for medical treatment, temporary and permanent disability and death benefits. Workers’ Compensation insurance is required in almost every state. Workers’ Compensation provides valuable benefits to your employees while protecting your business from legal exposure.

Worker’s Compensation (WC) policies are required by law in Arizona, even if you only have one employee. WC may also be required by whomever you are bidding a job for, even if you don’t have any employees. There are two parts to a WC policy; Statuary benefits (the amount paid to a worker for an injury – medical and indemnity) and Employers’ Liability (incase you are sued by an employee). If an employee is covered by statuary benefits, he can’t sue you – that’s why you want your employees to be covered under Worker’s Compensation.

Employers in the past have tried to not cover employees by paying them on a 1099 (like a sub-contractor) rather than paying them on a W2. This is very dangerous as the Industrial Commission has it’s definition of what constitutes an employee and if they determine (after an injury) that you should have had a work comp policy, you will be penalized and they can shut you down.

The Arizona Registrar of Contractors (ROC) rules state that if the job (materials & labor) are $1,000 or more, you must use your own W2 employees or a licensed subcontractor.

Obtaining WC can be very challenging in Arizona for a new contracting businesses. JP Insurance Group works hand in hand with our customers to assist in securing Workers’ Compensation policies either through a standard market or NCCI (assigned risk). We can help you with handling claims, quarterly or monthly premium reports, policy audits, certificate requests, loss run requests and deposit requirements as well.