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Helping Injured Workers In Arizona Since 1973

Safe Arizona employers will see incentive from insurance carriers

Although this blog typically discusses how Arizona employees can receive workers' compensation benefits when they have a workplace accident, a recent announcement from this state's largest carrier of workers' compensation insurance serves as useful reminder that it pays for employers in Arizona to maintain a safe workplace environment.

Arizona employers must carry some form of worker's compensation insurance so that they can pay an injured employee. Compliance with this rule usually involves an employer's paying premiums to an insurance carrier that covers workers' compensation. This is, for the most part, simply the cost of doing business.

However, as has become a longstanding tradition, the state's largest insurance carrier has announced that it will pay total "safety dividends" of $3.5 million to some of its customers. While some of these customers will receive discounted premiums, other employers will receive monetary compensation.

Not every employer that has a policy with this company will benefit; the insurance company will hand out its dividends based on a number of factors, including the employer's safety record. Those employers that have a better track record for safety will be more likely to receive a financial incentive from the carrier.

While the insurance company never guarantees an annual dividend, it is more likely to pay its customers a safety bonus when the company performs well. The company performs well when it has to pay fewer workers' compensation benefits, and, in turn, fewer benefits get paid when there are fewer workplace injuries.

It is a fact of life in Arizona that most employers will pay for workers' compensation insurance; however, these employers can save a bundle of money on those inevitable premiums simply by assuring a safe workplace and preventing injuries.

Source: Phoenix Business Journal, "SCF Arizona to pay out millions in safety dividends," Angela Gonzales, May 13, 2013

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