Commercial General Liability insurance is also known as CGL.

​If business insurance were a value meal at McDonalds, Commercial General Liability insurance would be the Quarter Pounder with Cheese. Before you add the fries and the drink, before the napkins and the ketchup, you must have the burger. Without it, there's no meal.

Almost all business insurance in Arizona begins with a business liability policy. It's the policy that keeps you from being sued out of existence. It's the first building block of your insurance. It's where you start building the unique protection plan that's just right for your business.

It's been known by several different names: Commercial Liability, Business Liability, General Business Liability, General Liability (GL), Commercial General Business Liability, and of course, its current and best known name, Commercial General Liability Insurance (CGL).

It's also called by a common term: "slip and fall insurance." The obvious reason for that is the banana peel scenario. We'll see in a minute how a CGL policy works in a slip and fall.

No. You are not required by law in Arizona to have Commercial General Liability. 

However, many (maybe most) contractors and other businesses are required, by contracts that they sign, to carry minimum business liability coverage before beginning work.

​That's why learning more about CGL insurance in Arizona is so important.

Commercial General Liability (CGL) insurance in Arizona is comprehensive; as a matter of fact, CGL used to stand for "Comprehensive General Liability." 

CGL insurance is the basic building block for the rest of your business coverage.

​Most insurance companies use a standard "template" for structuring a business liability policy. This template is provided by the ISO (Insurance Services Office). They break down the standard CGL policy into three sections:

Coverage A: Bodily Injury and Property Damage Liability
This section protects you from liability when bad things happen to someone else, and they sue you for damage to their body, mind, or property. Or all three. This is the "slip and fall" part of your Commercial General Liability insurance in Arizona. 

Let's take the case of the proverbial banana peel to see how this works:

Sam, your delivery guy, is in his usual hurry to get to his next stop. He doesn't see the banana peel that Bob, your employee, left lying on the floor. (Bob was in a hurry to get back to work and couldn't find the trash can. Hurry is often at the foundation of many liability claims.)
​
Ok, back to Sam, who is in a hurry.

Sam slips on Bob's banana peel. He falls.... hard.

Sam hits his head, gets a concussion, and drops his iPhone too. The phone cracks (just like his head) and off Sam goes to the Emergency Room.

​Sam can sue you and your company for the medical bills to fix his body, the cost to replace his phone, and the cost to see a therapist to deal with his new phobia of banana peels.

​Part A  of your GCL policy is designed to cover these liabilities.

​
Coverage B: Personal and Advertising Injury
This section is a bit more  confusing. And full of "exclusions." But in general, this section of your Arizona liability insurance policy provides coverage for:

• Libel
• Slander
• Defamation
• Copyright infringement
• Using another company's advertising ideas
• Wrongful eviction, or invasion of privacy

Let's continue with the story of Sam's banana peel incident.

You get sued by Sam. You are not happy. After all, it was *Sam's* fault because he was in a hurry. As a matter of fact, it's his company's fault for pushing their employees too hard.

You decide to take it to Twitter. You'll tell the world all about how mean his company is for making people rush everywhere. That'll teach them. And maybe you'll feel better.

You go all "Tweetstorm" on Sam's company.

You get Sam's company's attention.

Then you get served. You are being sued by them for libel.

​Part B of your CGL policy is designed to handle this lawsuit.


Coverage C: Medical Payments
Sometimes you just need to "settle out of court" for smaller medical bills. That's what this section was designed to cover. The good thing about this coverage is that it requires no legal action in order to pay a claim.

Let's finish the story of Sam and the banana peel to see how this works.

​Sam's replacement (we'll call him Sam Jr) pays more attention than Regular Sam. There are no more banana peels, and since you are being sued under both Section A and Section B coverages, you are glad this new Sam is being careful.

But no one can be perfectly careful at all times. Accidents are always just around the corner.

​Sam Jr is leaving your building, and as he rounds the corner, he barks his shins on a chair that Bob just placed there. For no good reason. (Bob needs some additional safety training.)

Fortunately, Sam Jr only suffers a badly bruised shin. And clearly, your business is responsible. So off Sam Jr goes to the ER.

He's bruised, but nothing broken. Whew. He's back at work the next day.

You contact your insurance company. They agree to settle this without legal hassle or argument. Sam Jr's ER visit bill is covered under Section C.

It helps to have a list of common things covered by a Commercial General Liability in AZ.

Bur remember, articles about an insurance policy are not the policy themselves, so don't rely on this general information to guarantee a future claim. (Always consult your local agent to explain your particular policy benefits.)

These 7 things are generally covered under most standard GCL policies:

1. ​Bodily injury, accidents and death.
   If you are a business that interacts with other people, whether on your own property, or on a job site, this coverage lets you sleep at night. If your employee accidentally knocks someone down and they sue you... this coverage goes to work.
   
   
2. Property damage that your company causes.
   Any business, and especially contractors in Arizona, run the risk of causing property damage to their clients. This is a common day to day exposure.
   ​
3. Copyright infringement.
   You decide to run a new advertising campaign. You have the BEST slogan, and a great graphic to go with it. Your printer thinks it's awesome too. You print 10,000 postcards and mail them out. Unfortunately, a competitor in another part of town used the same slogan and a similar graphic last year. It probably got stuck in your subconscious. But now you are being sued for violating his copyright. This coverage protects you from financial ruin over the whole accidental incident.
   
   
4. Slander, libel and defamation.
   It's EASY to get sued for something you say or write about someone else. "Thick skin" is a thing of the past. People sue for the slightest offense to their reputation. This coverage helps you when your mouth (or keyboard) betrays you.
   
   
5. Product liability.
   If you make widgets, your widget could have a flaw no one could foresee. A safety concern. If so, the lawsuit it creates could put you out of business. You need product liability protection.
   
   
6. Completed operations.
   Have you ever made a promise that you couldn't keep, through no fault of your own? We all have. But when that happens in a business relationship, it can be grounds for a lawsuit. Completed operations coverage is there to protect you from this risk.
   ​
7. Legal defense.
   ​"Anyone can sue anyone for anything" is the old saying. And it's true. You need protection not just from legitimate lawsuits, but from the frivolous ones too.

The simple answer is this: a CGL policy covers only liability. A BOP covers both liability and your business property. The BOP has the advantage of simplicity- everything in one package. But your specific business situation may require a CGL and other additional polices.

Your experienced, local insurance agent can help you decide which is best for you.

I recommend that you review your business insurance every year. A big part of that review is to make sure that your changing business didn't create a gap in coverage that you didn't have the year before. 

I've been helping business owners in Arizona for over 20 years review their insurance and make sure they don't have any unnecessary gaps in coverage. I can help you too.

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Photo credit

Your business is a reflection of you and your hard work. That's what makes it beautiful.

You worked really hard to build it.

So your insurance should work just as hard to protect it.

I'll talk about some of the basics, so you and your agent can work better together.

What does a commercial insurance policy in Arizona cover?
A basic business insurance policy in Arizona will include coverage that protects your building, your business property, your business income, and your business assets in case you are sued (we call this business liability insurance).

Typical small business policies in Arizona bundle these coverages in a specific type of policy called a BOP (Business Owners Policy). BOPs are pre-packaged with the most common types of coverage that most businesses need. They are a great convenience. But I thought I'd separate the features in order to help you understand each coverage a little better.

In this article, I'll focus on Building Coverage and Business Personal Property coverage. I'll talk about Business Liability coverage in my next article. I also wrote an article about Business Income Protection (also known as Business Interruption Coverage) here.

So let's get started!

"Fire!" 

You know that property insurance covers fire. But what about a nearby nuclear reactor meltdown, like Chernobyl? Or an alligator attack? (Just checking to see if you were reading.)

The insurance industry uses three different policy forms that tell you in advance what types of tragic events are covered, or are not covered.

​Most companies use standardized policy forms by ISO (Insurance Services Office). ISO is a wholly owned subsidiary of Verisk Analytics. You can read more about them here.

Having three types of policies allows you, the business owner, to have some choice in premium. The more that's covered- the higher the cost.

Let's look at these three policy forms:

Almost all standard commercial property policies in Arizona include a long list of exclusions. These can be excluded by name (as in a Special Form policy, or simply omitted as a covered peril in Basic and Broad Form policies).

​The good news is that some of these can be covered by adding optional coverage to the standard policy. Here is a list of few of them. There are usually more. You should ask your agent about which of these standard exclusions can be covered for an extra premium:

• ​Earthquake
• Flood
• Power Failure
• Neglect
• War
• Nuclear Hazard
• Intentional Acts
• Pollutants
• Robbery, theft or burglary
• Employee Fraud or Dishonesty
• Ordinance of Law (Zoning changes)

​A few of these are uninsurable by any company, such as War and Nuclear Hazard. But many of these exclusions can  be covered optionally. Ask your agent.

That's going to be a different answer for each business owner.

Just be aware of these differences, and discuss the "what-ifs" carefully with your agent. Each policy is different, and prices can vary substantially by the choices you make. So get your list of "what-ifs" together before sitting down with your agent.

​Even if one of your "what-ifs" includes alligator attack.

A typical commercial insurance policy in Arizona will cover the building you own as shown on the Declarations Page. That's usually the first page of your policy.

It will also typically cover permanently installed fixtures and equipment used to run your business, as well as attachments to the building. And if you lease your business space, "improvements and betterments" are typically covered as well.

You, as a business owner, have some critical choices to make when it comes to deciding how much to insure your property for. They affect your premium, and your future claims.

​So let's look at those choices:

Most of us understand this choice when it comes to our home. Replacement cost means that if something I own is burned up in a fire, the insurance company will pay to replace it with a new item of similar quality, up to the policy limits.

If you choose "Fair Market Value" (or "Actual Cash Value") as the option for claims paid, the formula for a claim to be paid would begin at the depreciated value, not the cost to replace or rebuild like new.

Obviously, this affects the premium. Fair Market Value is the less expensive way to go, but it will pay out less at claim time.

And there is a unique wrinkle in this formula. Let's look at  that now.

Coinsurance in a commercial insurance policy is treated differently than other types of insurance policies where the term "coinsurance" is used.

​Coinsurance in commercial property policy means that there is a requirement to insure your property to a certain percentage of its appraised value. The amount you choose for coinsurance will affect your premium. We all understand that.

But many business owners don't understand that the coinsurance must work in tandem with a properly appraised value, or there will be a penalty at claim time.

Here's where you can get in trouble:
Let's say that your building was appraised at one million dollars in 2005, but now it's appraised at 1.4 million dollars. You had a 90% coinsurance option in your policy, and you haven't increased the original insured amount since 2005.

The building burns down tomorrow. 

You'll be penalized for underinsuring your property according the the coinsurance provisions.

It's somewhat complicated. And very important. And a very good reason why you need an experienced insurance agent to help you insure your property correctly. Here's an in-depth article that may help explain this coinsurance concept.

My advice is simple: Talk To An Experienced Agent.

Most business owners I talk to haven't reviewed their insurance coverage in several years. In this time of rising property values and rising costs, an Arizona small business owner should be reviewing their commercial property coverage at least once a year.

I have decades of experience helping Arizona businesses get the right coverage at the best rate. I can review your current policy, and identify any possible gaps.

I'm located in Chandler, AZ. Give me a call and ask me any business insurance question.

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Photo, Bottega del pane, by Salva Barbera on Flickr. CC licensed.

Commercial auto insurance is one of the most misunderstood types of insurance coverage for small business owners. Many small company owners in Arizona think that it's:

• Not necessary for them.
• Only for large companies.
• Too difficult to understand.

These are all myths.

Let's start debunking these myths right now. 

A general guideline to use when thinking about whether or not you need commercial auto insurance in Arizona is this: if your vehicle is used for more than just getting to your job, you should keep reading, and then call you local insurance agent for a consultation.

Your financial future may depend upon it.

​As a local Farmers insurance agent in Chandler, I'm often asked:

​"Joe, will my personal auto policy cover business use?"

I usually answer that question with: "Yes, sometimes."

I'll expand on that answer:
Occasional business use of your private passenger auto, pickup or van is generally covered under many standard auto insurance policies.

Many personal auto policies use language from the "standard" auto policy recommended by the Insurance Services Office, Inc. (ISO). Here is a pdf of a sample policy. On page 3, in section 7, you'll see that all business use is excluded. But there is a broad exception to that exclusion, which states that it does not apply to private passenger auto, pickup or van.

There. Have I confused you yet?

In simple English... if you drive a personal vehicle, you are covered for business use, according to the basic suggested policy framework. This "exception to the exclusion" was primarily to protect people like accountants, consultants, doctors, lawyers, Avon representatives, part-time sales people and others who occasionally and incidentally use their personal vehicle in their line of work.

But there are pitfalls to having a personal policy if you are a business person.

1. Not all policies are worded the same.
The ISO may suggest language, and provide a basic framework, but many insurance companies expand upon these exclusions. You should read all the exclusions in your personal auto insurance policy. If you want someone to help you do that, and you live in Arizona, give me a call at (480) 940-0909.

2. The term "private passenger auto" implies private use of your vehicle.
​A big part of figuring out whether or not you need a commercial auto policy in Arizona is by working closely with your local insurance agent to determine if your vehicle is a "private passenger" vehicle or a "business" vehicle. By fully disclosing every use of your vehicle, you are making sure the underwriters at the insurance company fully understand the risk that they'll be insuring. Then each side - insured and insurer - is making the deal with full knowledge before claim time.

Many Arizonans have claims denied after the fact because they should have had a commercial auto insurance policy instead of a personal auto insurance policy.

If you aren't just driving to work- but driving is a part of your work, keep reading. A personal auto insurance policy may be putting your business at risk.

First, let's look at a list of questions that should trigger a call to your insurance agent about commercial auto insurance. These don't mean that you automatically need business auto insurance, but they do mean that you should have a discussion with your agent.

If you answer "yes" to any of these, but you don't have a commercial (business) auto policy, call your agent now. You may also call me, if you live in Arizona, and I'll be happy to answer any questions you have with no obligation. I'm in Chandler, AZ. My number is (480) 940-0909.

Questions:

• ​​Do you use your car, truck or van for business?
• Do you travel from one job site to another?
• Do you carry work equipment in your vehicle?
• Do you transport supplies for your business in your vehicle?
• Do your employees ever borrow or use your vehicle to run errands, pick up supplies, or go from job to job?
• Is your van, truck or car registered in your business name or your DBA?
• Does your vehicle have special equipment attached that is essential for your business, like ladder racks, other types of racks/shelves, hydraulic lifts, winches or tool boxes?

​Many self-employed artisan contractors answer "yes" to one or more of these questions. If you are a drywall contractor, ceiling tile installer, taper, carpenter, home or residential general contractor, electrician, flooring installer, glazier, HVAC contractor, a maintenance or repair professional, roofer, pool cleaner, landscaper, or someone who uses tools for your trade, and you travel from job site to job site- you may need a commercial auto policy in Arizona.

An easy rule of thumb:
If your vehicle is essential to your business- you may need commercial auto insurance.

If you aren't a contractor, and you don't drive around with a van full of tools, you may still need commercial auto insurance. An experienced insurance agent can help you decide.

You are a sales or service related business
If you spend your day driving from location to location, the insurance company may consider that "using your vehicle for business." That means that you may need commercial auto insurance, or at least a special rating on your personal policy.

You are an S-Corp, C-Corp, Partnership, DBA or an LLC
If you title your vehicles in the name of your business- you need commercial auto insurance.

Your business is in multiple locations.
If you own a business with several locations, even if you don't "use your car for work," you are likely traveling between your locations checking up on things. That could easily be seen by an insurance company as "using your vehicle for business." And that could require a business auto insurance policy, or a special rating on your personal Arizona auto insurance policy.

​Your business has significant assets.
If you or your business (the courts often don't care about this distinction) have significant assets, then you could be exposed on two fronts to a lawsuit that arises from a car accident.

Commercial auto policy limits are usually much higher than personal policy limits. And you may need those higher limits.
​
For example: You’re running late to a meeting with your employees. You’re on your cell phone with a client, and you just don't see that car that pulled out in front of you. It causes an accident where others are injured. So you get sued. And you lose.

Time for insurance to pay up.

First, your personal auto policy pays out to its limits. But then the plaintiffs come after your company assets. The legal reasoning is that you were using your vehicle for "company business." The practical reason is that your company may have more money.

This is a situation where having the higher limits of a commercial auto policy could save your company from bankruptcy.

Finally, let's talk about common situations where Arizonans regularly have claims denied because they thought that their personal auto policy would cover them- and it didn't.

Part-time delivery service.
If you (or your kids) are delivering pizzas- CALL YOUR AGENT RIGHT NOW. This goes for delivering anything, from newspapers to sub sandwiches. If you deliver pizzas part time, and you have an accident, your personal auto policy may not cover the claim.

Rideshare driver. (Uber is your side job.)
I've written before about rideshare insurance in Arizona. But let's say it again loud and clear- if you are a rideshare driver (Uber or Lyft), you have SPECIAL INSURANCE REQUIREMENTS. In short- your personal auto policy stops covering you the minute you turn on your app and get ready to accept a passenger. Uber and Lyft don't cover you until your ride is actually in the car. You have what's known as the "rideshare gap" problem.

Fortunately, Farmers insurance can add rideshare insurance coverage to your personal auto policy that covers this gap in coverage, so you don't need to buy a commercial auto policy.

At Joe's Insurance, we specialize in rideshare insurance. Call us at (480) 940-0909.

We've seen that:

• Commercial auto insurance is necessary for many people.
• Commercial auto insurance isn't just for large businesses.

​If you are just realizing that you might need a business auto policy (a commercial policy), keep reading so you have an overview of some of the unique features to a commercial insurance policy. Then call an experienced agent for help.

If you live in Arizona, you can call me for a no-obligation question and answer time to discuss your unique needs. Call me (Joe) at (940) 480-0909.

Now let's talk about the unique advantages of a commercial auto insurance policy.

I've already mentioned that commercial auto insurance in Arizona will typically have higher liability limits. So let's start there.

One of the advantages for you as a business owner in having a commercial auto insurance policy is higher liability limits. A typical business auto policy starts at $500,000 in liability coverage; many companies and agents recommend at least $1,000,000 in coverage.

There's another difference in liability. Commercial auto usually has a Combined Single Limit, also known as a CSL, which simply means there is one large liability "bank" to draw from if there's a claim, instead of separate limits for property damage and bodily injury.

Commercial auto insurance offers beautiful custom-tailored solutions. Just like personal auto insurance, it offers the same great protection, plus some features that you may not have known you needed. And you still get all of the standard coverage that you would expect on any good auto policy, such as:

• Bodily Injury Liability
  Protection for your business in case you or an employee have an accident that injures someone else. Legal defense fees are generally included.
• Property Damage Liability
  Have a fender-bender with another car and it's your fault to the tune of $2,500? Your commercial auto policy uses this feature to make things right.
• ​Collision
  Did one of your employees "not notice" that big wall behind them and wrinkle the back end of your van? No worries. This provision is used to repair the damage.
• Comprehensive
  You watched the hail storm on the news and winced. The next day you saw the dimpled hoods on all of your company vehicles. This feature fixes it.
• Uninsured and underinsured motorists
  Nothing is worse than hearing the guy who hit you say "I don't have any insurance." ​Don't panic- UM and UIM was created to make up for his negligence.

In addition, you can pick up some additional coverage unique to commercial auto. I'll touch on just two them, since they are commonly needed by business owners:

1. Hired auto coverage
   If your business "hires" a vehicle that it doesn't own, such as leasing or renting it, there is still risk and exposure for the activities that occur as it's being used in the business. This can even apply to a borrowed vehicle. This feature extends coverage to these vehicles. Here's a big exception though: this does not apply to "hired" or borrowed vehicles from your family, employees or partners.
   
   
2. Non-owned auto coverage
   In a small business, it's a common occurrence to use vehicles that neither the owner nor the company owns. You might borrow your employee Bob's truck. Since Bob's personal policy wouldn't cover a business-related claim, and the vehicle doesn't belong to the business, this gap needs to be protected. This is where "non-owned" coverage shines. It fills the need created by the exception in "hired auto" coverage.

​There are many more optional coverages. Your agent will go through them all with you.

I've only scratched the surface of issues related to commercial auto insurance in Arizona. Because of this, you can't really make the best decision on what to do based on this article alone. And you certainly can't count on this general overview to be a guarantee of how a future claim might be handled.

So call a commercial insurance expert.

Make an appointment to do a complete review of your insurance needs.

You can do this over the phone with any experienced & licensed Arizona insurance agent.

​Then put a plan in place to protect you and your business.

If you'd like help or advice, with no obligation, call me at (480) 940-0909.

~Joe

In the continuing series, The Arizona Business Insurance Guide, I'll do my best to cover the most common questions about Workers' Compensation in Arizona. I wrote a post a few months ago about the basics of Work Comp in Arizona, but there's much more to know if you are a business owner in Chandler, Gilbert, Phoenix, Scottsdale or Tucson, Arizona.

​The format will be question and answer.

Let's jump right in.

​(Oh, first, the standard disclaimer: I'm an insurance agent. I can be reached at 480-940-0909. I'm not a lawyer. You should not make decisions on this information without consulting an insurance agent and your attorney. Coverage cannot be bound based on this article. ~Joe)

Workers' compensation, also known as "workmans' comp" and  "work comp" is a type of insurance that pays for medical expenses, lost wages and disability for work-related illnesses and injuries.

​Premiums are paid by the employer. Workers' Compensation was created in part to ensure that employees got immediate financial help if they were hurt on the job, and employers had some protection from lawsuits due to work-related injuries.

Workers' compensation in Arizona is regulated by the Industrial Commission of Arizona.

If you have employees...

​Yes, you are required to carry workers' compensation, even if you have only one employee.

(This is authorized by Arizona Statute A.R.S. § 23-901. Scroll down to Chapter 6 to see all the sections. And if you really like detail, you can read the 101 pages of Arizona Workers' Compensation Administrative Code. Have a lot of coffee ready.)
​
In short- the Arizona Legislature has required this coverage, even for one employee.

Yes, there are exceptions, but very few. 

In Arizona, you are not required to carry workers' compensation on yourself if you are a sole proprietor without employees.

​You are also not required to provide workers' compensation in Arizona for working partners, very infrequent workers ("both casual and not in the usual business of the employer"), domestic servants, and independent contractors. But see the question below where I discuss the risk of assuming someone is an independent contractor. 

You are not required to carry work comp on yourself. But you may. It's optional in Arizona

Arizona workers' compensation law allows for self insurance. The Industrial Commission of Arizona sets the rules for this. Your business must have been in existence at least five years, have an annual payroll of two million dollars, and have assets of at least 50 million dollars. This rules out most small businesses in Arizona. There is more information here.    

You still have to provide workers' compensation insurance in Arizona even if your employees are part-time, seasonal or minors... even family. Yes, you have to cover your brother Bob.

Any and all employees, regardless of status, must be covered by work comp in Arizona.

One of the most common ways to get around work comp requirements is by using only independent contractors. If you use an independent contractor once in a while, and you are careful to not exercise  control over their activities, you might be ok without work comp.

BUT BE CAREFUL. I wrote an article about the definition of independent contractor, and many business owners think that they're safe by calling a person an "independent contractor."

​However, calling someone an independent contractor does not necessarily make them one. 

In disputes after someone gets hurt on the job, the courts decide if that person you have doing things for you is an employee or not. They base it on a "totality of facts." If the court decides that the injured "independent contractor" is an employee- you could be in trouble.

​In short: if it looks like an employee, it probably is.

Yes, Arizona operates under a "no fault" system.

What does that mean?

No matter who or what causes the illness or injury at work, workers' compensation pays.

​It doesn't matter if the employer left a banana peel on the floor, or if the employee was just careless when he dropped the hammer on his foot. Work comp handles the claim.

​Of course they are a few exceptions (consult an attorney for details). One of the most common exceptions is in cases of "purposely self-inflicted" injury.

As an employer, you need to consider what could happen if you don't carry workers' compensation on your employees in Arizona.

This may scare you (it should)... you would be guilty of a Class 6 felony. (A.R.S. § 23-932)

​Are you going to jail? Probably not. Are you in trouble? Yes.

​In addition to your employee being able to sue you in some cases (this gets into legal weeds, so consult an attorney for the details), you are also subject to a civil fine of $1,000 for the first offense, $5,000 for the second offense, and a $10,000 fine for the third offense.

If an employee is injured, they would still be covered- just not by your workers' compensation. Instead, they'd be covered by the Industrial Commission of Arizona (ICA). The ICA has a special fund to process work-related illness or injury claims when the employer has no workers' compensation coverage.

Then the ICA comes after the employer for reimbursement.

Finally, and this is a big thing... the State of Arizona could shut down your business with a court injunction if you refuse to get the required workers' compensation insurance.

​It's just not worth the risk.

In addition to being required to provide workers' compensation for your employees, you have several other obligations. They are important, and not complying can get costly.
​

1. You must publicly post employee rights.
   You must post, in writing and in a public place, the rights of an employee to accept or reject workers' compensation coverage. The form is here.
   
   
2. You must not demand that an employee waive coverage.
   Even though an employee may voluntarily waive their right to participate in workers' compensation, do cannot ask or pressure them to waive that right.
   
   
3. You must provide an employee with certain information in the event of an incident.
   If an employee is injured on the job, or if they report to you that they have an illness or injury related to the job, you must provide them immediately with the name of your workers' compensation carrier, the policy number, and the policy expiration date.
   
   
4. You must report a work-related illness or injury within 10 days.
   The Industrial Commission of Arizona requires that you report the disease, illness or injury to your workers' compensation carrier and to the ICA within 10 days. You can download the form here, or in fillable pdf format here.
   
   
5. You must report certain injuries more quickly.
   The Arizona Division of Occupational Safety and Health (ADOSH) has additional reporting requirements. Here they are:
   -Work related fatalities, report within 8 hours.
   -In-patient hospitalizations, amputations and any eye losses, report within 24 hours.
   Visit their page for details on reporting, or call (855) 268-5251.
   
   
6. You must never punish an employee for a claim or lawsuit.
   If there is a claim for a work-related injury or illness, be careful to not do anything that can be seen as punishment or a reprisal. Watch your words and actions.
   
   
7. You must cooperate with investigators.
   If one of your workers files a work comp claim or a lawsuit against you for a work-related illness or injury, cooperate with all investigators. Don't withhold any information, and most importantly, contact your attorney and your insurance agent.

These aren't just good ideas. They are business-saving obligations. There are many attorneys in Arizona ready and willing to come after you if you don't do what's required.

No, not usually.

​According to the Industrial Commission of Arizona (ICA),

​"in most instances, workers compensation is the exclusive remedy against an employer that is insured for workers’ compensation."

But that doesn't mean you are always in the clear after a work-related claim.

In the case of an employee who has voluntarily opted-out of workers' compensation, you could be sued for financial damages related to the illness or injury sustained at work. This is a good reason to discuss all possible scenarios with your attorney and your insurance agent.

Finally, if the employer has not followed the legal requirements for posting employee rights to accept or reject work comp coverage, or if the employer or another employee has engaged in "willful misconduct" then the employee may be able to file a lawsuit.

The Industrial Commission of Arizona provides a list of all insurance carriers that are licensed to sell work comp in Arizona. That list is here. In addition, if your business does not qualify for a commercial workers' compensation policy, you can sometimes get coverage through the former "state plan" that now competes as a non-profit company, CopperPoint Mutual.

If all else fails, the NCCI (National Council on Compensation Insurance) administers an "Assigned Risk Plan" for the State of Arizona for those employers that cannot otherwise qualify for work comp coverage through any other carrier.

YOUR FIRST OPTION should be to work with an experienced and local insurance agent who has knowledge of the ins and outs of workers compensation in Arizona.

You should choose a local, experienced insurance agent for two reasons:

• Safety
• Simplicity

SAFETY
An experienced local insurance agent can take the time to make sure that every "i" is dotted and every "t" is crossed. You can't afford to miss anything. Workers' compensation insurance isn't just an afterthought- it's essential to the survival of your business. A local agent sits down with you to make sure that you do this right.

SIMPLICITY
A local insurance agent partners with a company that they've chosen to provide complete workers' compensation protection, including a dedicated team of specialists to hold your hand through any claims that arise. You need simple if something happens.

​MOST IMPORTANTLY, you have ONE PERSON TO CALL for any questions. Your local agent partners with you so you don't have to be the expert. You've got a strategic partner.

Yes.

Any employer can get workers' compensation insurance in Arizona, and I'd be glad to help you find coverage, regardless of your business.

However, the company that I represent, Farmers Insurance, specializes in certain industries.

If your business fits one of these categories, call me before checking elsewhere. I've got the experience to help, and I can offer a very competitive quote.
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