Arizona Workers Compensation Insurance Information for Employers
General information about the Arizona workers compensation insurance system:
Arizona Workers Compensation is a “no fault” system that allows an injured worker to receive medial and compensation benefits regardless the fault of the job related accident. The worker will receive medical benefits and possibly temporary compensation of wages lost during the time the employee is off work.
There are two divisions within in the Industrial Commission that are responsible for monitoring the procedures of the insurance carriers and the decisions for the disputes of the claims between employees, employers, and the insurance carriers that are Claims and Administrative Law Judge. This division receives claims from physicians and workers hurt on the job daily. They then notify the insurance carriers of the claims to be processed.
The Administrative Law Judge Division is responsible for resolving the disputes of the claims. This process is to protect the employee, the employer, and the insurance carrier from unjust claims.
Arizona Workers Compensation laws allow employer to provide voluntary coverage but there is not an exemption for businesses with a small amount of employees. All Arizona businesses are required to have workers compensation insurance coverage for all employees.
The Arizona Workers Compensation has full medical benefits without time or monetary limitations. The Benefits for Temporary Total Disability (TTD) is a percentage of the worker’s wages calculated equal to 66 2/3 of the average monthly wage up the $3,000 statutory maximum of $461.54 for the duration of the disability with $25 monthly added to benefits of dependents residing in the United States.
The Arizona Workers Compensation for benefits for Permanent Partial Disability (PPD) is calculated the same as TTD but does not have statutorily prescribed and the maximum is $461.54 with the duration period to be the time of the disability with no maximum benefit payout.
Negative Effects on Employers:
The “no fault” concept of Arizona Workers Compensation means there is not a responsible party but the employer will pay for the benefits for the employee in all cases of injury on the job.
The bad side to this concept is the employee can be doing their job ignoring the safety policy and procedures, become injured and the employers are required by the state to pay costly benefits to the employee during their recovery even when the employer is not at fault.
The employer is hit with expensive liability costs of the Arizona Workers Compensation insurance, the employee medical benefits, possible legal fees, and replacing the injured employee. This all can be quite costly when the levels of insurance coverage are not adequate.
Solutions to fix the problem:
Education of all employees on company safety policy and procedures is extremely important. Have regular safety meetings to share methods of company safety with employees so the company is not hit with expensive undeserved Arizona Workers Compensation claims.
Provide adequate safety equipment to all employees reducing potential Arizona Workers Compensation claims based on possible company negligence of work safety equipment.
Reward employees practicing safety within the company work place. Promote the highest levels of safety and reap the rewards of not having Arizona Workers Compensation claims.