If you are an Arizona employer, a worker sitting at home in Arizona is a regularly employed worker who triggers the coverage duty and needs to be covered, just like an on-site worker. Where the work physically happens, not whether it is remote, drives which state's coverage applies.
Who this is for: Arizona owners with remote or hybrid staff, and out-of-state companies with employees working in Arizona.
The short version
- Remote Arizona workers count. A home-based employee in Arizona triggers your coverage duty like any other worker.
- Location of the work drives coverage. Coverage generally follows where the employee actually works, not where the company is based.
- Out-of-state employers can owe Arizona coverage. A company with an employee regularly working in Arizona should carry a policy that lists Arizona.
- Your Arizona staff working in another state usually need coverage in that state too.
- Arizona coverage can follow a traveling worker hired here for short jobs out of state under the state's out-of-state rule (A.R.S. section 23-904).
Where coverage is needed
The practical rule is to insure each employee in the state where they physically do the work. Remote does not mean uncovered; it means you look at the home or job location.
| Your setup | Do they trigger Arizona's duty? | Where you generally need coverage |
|---|---|---|
| Arizona employer, employee works from home in Arizona | Yes | Arizona |
| Arizona employer, employee works from home in another state | Not for Arizona; for that state | The state where they work |
| Out-of-state employer, employee works in Arizona | Yes, for that employer's Arizona exposure | Arizona listed on the policy |
| Arizona employee who travels for short jobs out of state | Yes | Arizona, with out-of-state protection reviewed |
Out-of-state companies with Arizona workers
A company based elsewhere does not escape Arizona's rules just because its headquarters is out of state. If it has an employee regularly working in Arizona, it should carry a policy that lists Arizona so that worker is covered under Arizona law. Arizona also has a rule for workers who cross state lines: under A.R.S. section 23-904, an out-of-state employer's worker who is only temporarily in Arizona can be exempt, but only if a strict set of reciprocity conditions is met, and temporary is defined as fewer than ninety continuous days. The safe move is to tell your agent every state where employees actually work.
Getting the states right on your policy
Remote teams often span several states, and a policy set up for one state can leave a gap in another. We map where each employee works and make sure those states are listed so a claim is not denied for the wrong location. This matters most when you hire your first out-of-state remote worker, since that is when a single-state Arizona policy quietly stops matching your team.
A Tempe example
Illustrative, not a quote. A Tempe software company has one employee in its office and hires a second who works from home, also in Arizona. Both are regularly employed workers in Arizona, so the company needs a policy, and the remote worker is covered at their Arizona home just like the office staff. When the company later hires a developer who lives and works in Nevada, we add that state so the policy still matches where everyone works. See our workers comp for technology companies page.
Real questions Arizona owners ask
Do remote employees count for workers comp in Arizona?
Yes. A remote worker based in Arizona is a regularly employed worker who triggers your coverage duty like any on-site worker, and they need to be covered at their home location the same as office staff.
My company is out of state but I have a worker in Arizona. Do I need Arizona coverage?
Generally yes. If an employee regularly works in Arizona, you should carry a policy that lists Arizona so that worker is covered under Arizona law, even though your headquarters is elsewhere.
Where do I insure a remote worker, at my office or their home?
Where they actually work. Coverage generally follows the location where the employee performs the job, so a home-based worker is insured in the state where they live and work.
Do my Arizona employees working in another state need that state's coverage?
Usually yes. When an employee physically works in another state, you generally need coverage there too. Arizona also has an out-of-state rule that can extend Arizona coverage for short trips.
Does a work-from-home injury count as a workers comp claim?
It can. An injury that happens while doing the job at home can be a comp claim, which is one reason remote workers still need to be on the policy in their work state.
I just hired my first out-of-state remote worker. What changes?
That is when a single-state Arizona policy can leave a gap. You should list the new state so a claim is not denied for the wrong location. Tell your agent every state where staff actually work.
How does Arizona handle a worker who travels out of state?
Under A.R.S. section 23-904, an out-of-state employer's worker temporarily in Arizona can be exempt only if strict reciprocity conditions are met, with temporary defined as fewer than ninety continuous days. Arizona coverage can follow a worker hired here who travels.
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?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Arizona technology 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.