State insurance guide
Arizona Business Insurance Guide 2026
Arizona's workers' compensation law covers every employer that regularly employs any workers in the same business, with no minimum headcount, and those employers must insure with an authorized carrier or qualify to self-insure. Auto liability minimums and paid leave rules follow, each with its official source.
Explore Arizona requirements
Open the state requirements checklistArizona's workers' compensation law covers every employer that regularly employs any workers in the same business, with no minimum headcount, and those employers must insure with an authorized carrier or qualify to self-insure (Arizona Revised Statutes § 23-902 (Arizona State Legislature); A.R.S. § 23-961). Auto liability policies must carry at least $25,000 per person and $50,000 per accident for bodily injury and $15,000 for property damage (Arizona Department of Transportation, MVD Vehicle Insurance Information). NCSL's table lists no state paid family leave or temporary disability program for Arizona (NCSL).
Every source was checked on October 3, 2026; confirm with the linked agency how a rule applies to your business.
Shopping for business insurance in Arizona? Request coverage help
Workers' compensation
Who must carry it: Any regularly employed worker; no minimum headcount (Arizona Revised Statutes § 23-902 (Arizona State Legislature)).
"Regularly employed" includes work for only part of the year in the employer's usual trade or business (A.R.S. § 23-902). Covered employers must secure compensation through an authorized insurance carrier or approved self-insurance (A.R.S. § 23-961).
Exemptions and exclusions
Employers of domestic servants are excluded (A.R.S. § 23-902), and a person whose employment is both casual and outside the employer's usual trade, business or occupation is not counted as an employee (A.R.S. § 23-901). Whether someone is an independent contractor depends on the statute's tests; ask the commission.
The agency to ask is the Industrial Commission of Arizona. Our workers' compensation guide explains the coverage, and the workers' comp calculator checks the payroll arithmetic in a proposal.
Auto liability minimums
The minimum auto liability coverage in Arizona:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $15,000 per accident
- In force: for policies issued or renewed beginning July 1, 2020 (A.R.S. § 28-4009)
- Source: Arizona Department of Transportation, MVD Vehicle Insurance Information
For-hire passenger vehicles carry more. The MVD lists, for a taxi, livery vehicle or limousine during active passenger transportation, $250,000 per incident of primary commercial motor vehicle liability insurance and $250,000 per incident of primary commercial uninsured motorist coverage (Arizona Department of Transportation, MVD Vehicle Insurance Information).
For business vehicles, treat these figures as a starting point: commercial and for-hire vehicles can face different or higher federal or state requirements (see the commercial auto guide).
Paid leave and disability insurance
Arizona has no state paid family and medical leave insurance program and no state temporary disability insurance program, according to NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws; cross-checked on October 3, 2026 with the U.S. Department of Labor Women's Bureau).
Laws can change faster than compilations: Virginia enacted a program in 2026 (Code of Virginia § 60.2-801). Ask the state agency that handles labor and workforce matters before planning payroll for a later year.
Other requirements to check
Your trade license, lease or client contracts in Arizona can set their own conditions, for example general liability limits or certificate wording. Keep track with the certificate of insurance checklist, and see the requirements-by-state guide if you work across state lines.
Where to verify
- Workers' compensation: Industrial Commission of Arizona
- Auto liability minimums: Arizona Department of Transportation, MVD Vehicle Insurance Information
- Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau
Our state requirements checklist turns your employee count and vehicle use into questions for those offices. To ask PolicyBenchmark for a follow-up about your Arizona business, request coverage help.
Frequently asked questions
Is there an employee minimum for workers' compensation in Arizona?
No. Arizona's law sets no minimum headcount (Arizona Revised Statutes § 23-902 (Arizona State Legislature)), so a business with one employee is generally covered unless an exemption listed above applies. The agency to ask is the Industrial Commission of Arizona.
Are Arizona's auto minimums enough for business vehicles?
Arizona's minimums are $25,000 per person and $50,000 per accident for bodily injury and $15,000 for property damage (Arizona Department of Transportation, MVD Vehicle Insurance Information). They are the lowest limits the law allows. Commercial and for-hire vehicles can face different or higher federal or state requirements, and leases or clients can ask for more.
Does Arizona require employers to pay into a paid leave program?
Not according to NCSL's table, last updated November 7, 2025: Arizona has no state paid leave or temporary disability insurance program for private employers (NCSL). Confirm before planning a future payroll year.
About this article
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.