To get workers compensation in Arizona you buy a policy from any private insurer licensed in the state, usually through an agent who shops several carriers for you, because Arizona has no state fund. If carriers turn you down, you are still guaranteed coverage through the state's fallback plan, run by the rating bureau NCCI.
Who this is for: Arizona owners buying workers comp for the first time, or those who have been declined and need another route.
The short version
- You buy on the open market. Any insurer licensed in Arizona can write your policy; there is no state fund.
- An agent shops it for you. Because carriers price differently, comparing several quotes usually lowers your cost.
- There is a guaranteed backstop. If no carrier will take you, a state fallback plan run by NCCI must provide coverage.
- Large employers can self-insure with commission approval, audited finances, and a deposit of at least 100,000 dollars.
- Owner-only businesses have an option for contract demands, sometimes a policy with no covered employees, called a ghost policy.
Three ways to get covered
Most Arizona businesses use the first route. The other two exist for hard-to-place risks and for large, financially strong employers.
| Route | Who it is for | How it works |
|---|---|---|
| Open (voluntary) market | Most businesses | An agent shops licensed carriers and binds the best fit |
| The state fallback plan | Businesses carriers decline | A guaranteed plan run by NCCI provides coverage at set terms |
| Self-insurance | Large, financially strong employers | Commission approval, audited financials, and a deposit of at least 100,000 dollars |
What you need to get a quote
Having a few things ready makes the quote faster and more accurate. Gather your payroll by role, a description of exactly what your workers do, your business structure and each owner's ownership share, and any past claims. If you are an LLC or corporation, the ownership share matters, because owners under 50 percent are covered automatically and owners at 50 percent or more elect in by endorsement. With that in hand, an agent can compare carriers, place you in the right categories so you are not overcharged, and bind coverage, often the same day, then hand you proof of coverage, called a certificate of insurance, for your clients.
If you have been turned down
Being declined in the open market does not leave you stuck. Arizona guarantees access through its fallback plan, administered by NCCI, so a business that carriers will not voluntarily insure can still get a compliant policy. The fallback plan often costs more than the open market, so it is worth having an agent try the voluntary carriers first and use the plan as the backstop. If your business is owner-only and a client simply wants proof that a policy exists, a policy with no covered employees, sometimes called a ghost policy, can satisfy the contract without covering staff you do not have.
A Chandler example
Illustrative, not a quote. A Chandler plumbing company with two employees has one rough claim year and gets declined by the first carrier it tries. Its agent shops several more licensed carriers and finds one willing to write the risk in the open market, avoiding the pricier fallback plan. The company hands over payroll and job descriptions, gets placed in the right categories, and binds coverage the same week, with a certificate ready for its general contractor clients. See our workers comp for plumbers page.
Real questions Arizona owners ask
How do I get workers comp in Arizona?
You buy a policy from any insurer licensed in Arizona, usually through an agent who shops several carriers. Arizona has no state fund, so the open market is where most businesses get covered.
What if carriers turn my Arizona business down?
You are still guaranteed coverage through the state's fallback plan, administered by the rating bureau NCCI. It often costs more than the open market, so it is worth shopping voluntary carriers first.
What do I need to get a workers comp quote?
Your payroll by role, a clear description of the work, your business structure and each owner's ownership share, and any past claims. The ownership share decides which owners are on the policy.
How fast can I get covered in Arizona?
Often the same day or the same week. Once an agent has your payroll and job details, they can compare carriers, bind coverage, and hand you proof of coverage for your clients quickly.
Can I self-insure workers comp in Arizona?
Large, financially strong employers can, with commission approval, audited financials, and a deposit of at least 100,000 dollars. Most small businesses buy a policy instead, which is simpler and faster.
I am owner-only but a client wants proof of coverage. What can I do?
A policy with no covered employees, sometimes called a ghost policy, can satisfy a contract that just wants proof a policy exists, without covering employees you do not have.
Does an agent cost extra compared to buying direct?
An independent agent is generally paid through the policy, not on top of it, and shopping several carriers often lowers your price, so using one usually helps rather than adds cost.
Why Arizona owners choose Morrow
- We shop the right market for you. Arizona has no state fund, so you buy workers comp from private insurers on the open market, and we compare several to find your best rate. If your work is hard to place and no insurer will take you, a guaranteed state backstop (the NCCI-run assigned risk plan) will still cover you.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Arizona guides
Every Arizona business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Arizona (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Glossary: workers comp class code
- Arizona plumber workers comp
This guide is general information, not legal advice. Arizona rules and penalty amounts can change, so verify current requirements with the Industrial Commission of Arizona or a licensed advisor before you rely on them. Last updated: July 2026.