Understanding Arizona’s Workers Compensation Assigned Risk

What Is Assigned Risk?

In Arizona, the assigned risk plan provides a safety net for employers who are unable to secure workers’ compensation insurance through private companies. When insurers decline coverage for an employer, they may be placed in the assigned risk plan.

Key Points:

1. Coverage Challenges: If an employer is refused coverage by two or more insurers, they enter the assigned risk plan.
2. Single Plan: Arizona has only one workers’ compensation assigned risk plan.
3. Alternative State Fund: In addition to private insurers, businesses can explore the alternate State Insurance Fund if they face difficulties obtaining coverage.
4. Cost: In some cases coverage under Arizona’s Assigned Risk program can have higher costs compared with voluntary markets.

How Does It Work?

1. Eligibility: Employers who can’t find private coverage due to risk factors or other reasons become eligible for the assigned risk plan.
2. Coverage Availability: The plan ensures that even high-risk employers have access to workers’ compensation insurance.
3. Agent Assistance: Participation in Arizona’s Assigned Risk program is through the National Council on Compensation Insurance (NCCI). Licensed insurance agents can assist in getting coverage in this program.

Conclusion

Arizona’s assigned risk workers’ compensation plan serves as a safety net, ensuring that employers have access to essential coverage. If you’re an employer facing challenges in obtaining insurance, we can help you navigate the assigned risk plan and may even be able to offer alternatives to assigned risk, potentially saving your business money. Each business is unique, so our agents will work with you to understand your situation and find solutions that work.