Workers Comp Rates in Arizona (AZ)

Arizona workers comp rates are approximately 12% below the national average. Here's what Arizona business owners need to know about classification and premiums.

Arizona Workers Comp Overview

Arizona has below-average rates and mandatory coverage for all employers. The state uses NCCI classifications. Construction and landscaping businesses should verify their codes carefully.

How Arizona Rates Compare

With a state modifier of 0.88x, a business in Arizona paying $10,000 in base premium nationally would pay approximately $8,800 in AZ. This makes proper classification even more important in Arizona — every misclassified employee costs more.

The most impactful thing a Arizona business owner can do is ensure that office, clerical, and administrative employees are coded separately from their operational staff. In AZ, the difference between a clerical code (8810 at $0.16/$100) and a construction code (5403 at $9.42/$100) is massive — and that gap is amplified by the state modifier.

This guide is for informational purposes only and is not insurance advice. Arizona rates and requirements are subject to change.