Arizona Assigned Risk Pool
Providing adequate coverage to your employees for workers’ compensation may be a requirement, but it is a requirement that is unfortunately difficult for some businesses to comply with. You do have the option of purchasing your coverage through a voluntary insurance company, and this may provide you with the ability to have better control over the costs, coverage and even level of service that you receive. However, some businesses will not qualify for this type of coverage, and they may need to obtain coverage through the Arizona assigned risk pool.
What May Dictate the Need to Be in the Pool:
If you are having trouble obtaining workers’ compensation coverage on your own through a voluntary insurance company, you may indeed need to be in the Arizona assigned risk pool. There are several reasons why you may not be able to obtain insurance on your own. For example, if your company participates in hazardous activities, some voluntary insurance companies may not insure you. When you are denied coverage or are unable to find coverage that is required by law, essentially the state will find it for you. When you are in the assigned risk pool, an insurer will be assigned to provide you with the required coverage.
What to Expect From This Coverage:
While the state may do its part to help you find coverage when you are unable to do so, it is important to note that this is rarely the best option for you. The Arizona assigned risk pool is generally not the most cost-effective solution for businesses. You will first need to apply for coverage by filling out paperwork and submitting it to the state. Then, you will receive notice of the insurance provider who has been assigned to provide you with coverage. The cost is not negotiable, and you will be required to have the coverage in place until you find a voluntary insurance provider who is willing to give you a private policy.
Failing to comply with the state’s requirements to provide workers’ compensation for your employees is simply not an option, but there are instances when coverage is not able to be found. Through the Arizona assigned risk pool, even businesses that cannot obtain coverage on their own will be able to provide their employees with the required coverage. You can learn more about the Arizona assigned risk pool if you are having trouble finding a provider to approve you for a voluntary policy.
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