In Arizona, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Arizona's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Arizona, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Arizona?
Required for employers with one or more employees, including part-time; independent contractors, casual labor, and private-home domestic servants are excluded.
Can owners and officers be included or excluded in Arizona?
| Sole proprietor | Excluded by default; may elect coverage. |
|---|---|
| Partners | Excluded by default; may elect coverage. |
| LLC members | A working member is treated as a covered employee; may reject. |
| Corporate officers | Working officers/shareholders are presumed employees and covered by default; may reject. |
How to make the election in Arizona
- Official source: ICA Form 0113 — Notice of Rejection (revoked via Form 0114)
Payroll counted for an included owner in Arizona
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2027), set by NCCI.
| Included owner/officer minimum | $1,400 per week |
|---|---|
| Included owner/officer maximum | $5,700 per week |
Included executive officer $1,400–$5,700/week; working partners, sole proprietors, working shareholders, and LLC members are rated on a monthly wage ($600 minimum). NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Arizona's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Arizona assigned risk plan (administrator contracted by DIFI; NCCI is the rating org, not the administrator). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Arizona business insurance · Workers' compensation coverage · Industrial Commission of Arizona.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Arizona?
It depends on your entity and role. Excluded by default; may elect coverage. Working officers/shareholders are presumed employees and covered by default; may reject. Employees are always covered.
How do I include or exclude an owner from workers' comp in Arizona?
The right form, portal, or endorsement depends on your entity type. Arizona records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Arizona?
Included executive officer $1,400–$5,700/week; working partners, sole proprietors, working shareholders, and LLC members are rated on a monthly wage ($600 minimum). NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Arizona workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.