Expert answers to all your business insurance questions.
What does workers’ comp cover in Arizona?
Curious about what workers’ comp covers in Arizona?
First, it’s important to know that workers’ comp coverage works in a different way than other insurance products that you might already be familiar with. Basically, workers’ comp doesn’t have limits in the same way other coverages do. Instead, all coverage decisions are made by the state of Arizona—so you don’t have to worry about choosing anything.
So everything you’re about to read is set by law—it’s information for your reference.
Understood? Great. Let’s dig in.
What does Arizona workers’ comp cover?
Workers’ comp coverage pays for medical expenses, lost wages, and death benefits for an injury or illness that an employee sustains while at their job. In some cases, workers’ comp will also pay for ongoing medical support and job retraining. (How much will an insurance company pay out for a claim? Technically, the amount is unlimited—a serious injury resulting in a disability, for example, might require benefit payments for a lifetime.)
Let’s break that down a little bit more.
If your employee is injured or gets sick on the job, workers’ comp insurance steps in to ensure they have the funds they need to get the appropriate treatment. For example, if you own a landscaping business and one of your team members cuts their hand with a sharp tool, workers’ comp coverage would pay for the cost of tending to the injury. Workers’ compensation also comes into play for repetitive use injuries like carpal tunnel syndrome. In general, if an incident happens at your business that results in injury, workers’ compensation will pay for any medical expenses that arise.
There are some exceptions to that, though. In Arizona, most heart-related and mental injuries are not covered. Also, the workers’ comp claim can be denied for other reasons, such as if the injury was caused by disobedience or if your employee unreasonably refused medical treatment.
In Arizona, coverage for lost wages comes in three main forms of compensation:
- Temporary total disability benefits (TTD)
This coverage is for disability which lasts eight days or more. The worker will be paid 66.7% of their average monthly wage—but only up to a $3,000 maximum. Workers are only paid for the duration of the disability.
2. Permanent total disability (PTD)
This coverage is for when a worker has lost 100% of their earning capacity, and this compensation can be continued for the lifetime of the worker who was injured. The worker will be paid 66.7% of the employee’s average monthly wage up to a $3,000 maximum.
3. Permanent partial disability (PPD)
This covers a situation in which an employee has lost some of their earning capacity, but not all (after medical treatment, some permanent impairment has remained). In this case, up to 66.7% of the worker’s average monthly wage will be paid, but the exact amount depends on the kind of injury that was sustained.
When the worst happens, workers’ comp will compensate expenses for any medical care and provide a burial allowance. In some cases, surviving family members may be eligible for benefits. (Go here to read more about that: https://www.amrrp.org/Resources/Documents/AZ%20WC%20Death%20Benefits.pdf)
Go back to The Complete Guide to Arizona Workers’ Comp or Get an instant estimate on workers’ comp coverage.