Many businesses in Arizona are required to provide workers’ compensation coverage to their employees per the law. This is coverage that may pay for medical expenses, time away from the job and more in the event of an injury accident or another similar event on the job. While most businesses will be able to provide their employees with the coverage that is required by law, others will not qualify for coverage through a typical plan due to a number of potential reasons, and they may be placed in an Arizona workers comp assigned risk pool.
What Is the Assigned Risk Pool?
If your business is unable to qualify for a private workers compensation insurance plan and you are unable to provide the required coverage for your employees, you will be placed in an Arizona workers comp assigned risk pool. This essentially means that you will be required to pay for the coverage offered to the pool rather than get more competitive rates and better plan options by shopping around. Generally, the rates offered to the assigned risk pool are less attractive, but this does give you the ability to comply with the legal requirement for coverage.
What Are Your Options in the Assigned Risk Pool?
When your business is placed in the assigned risk pool, this may be because your business participates in a high-risk activity or for another reason. There is always the option to identify why your business has been denied coverage through other insurers, and you may consider ways that you can improve the situation so that you do qualify for coverage. When you qualify for coverage through other insurers, you can get out of the assigned risk pool, and you will have the opportunity to take advantage of better plans and more competitive rates. Some, however, will need to remain in the assigned risk pool due to the on-going nature of risky work activities.
Workers’ compensation can be a costly expense for all businesses, but it is required by law for many. When you are required by law to obtain this type of coverage but are unable to find the coverage you need, you can get coverage through the Arizona workers comp assigned risk pool. Whether you use this is a temporary or permanent solution to meet this legal requirement, you will be pleased to know that this coverage is available to help you comply with the law.
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