Protecting Your Crew and Keeping Your Jobs Moving

Workers’ Compensation

In the construction world, accidents can happen fast—and they can be costly. That’s why workers’ compensation insurance is one of the most important coverages a contractor can carry. If an employee gets hurt on the job, work comp pays for medical treatment and lost wages—and protects your business from expensive lawsuits.

JP Insurance Group provides Arizona contractors with construction-specific workers’ compensation policies that fit the way you actually work. Whether you're framing homes in Gilbert, running HVAC in Tempe, or managing multiple job sites across the Phoenix Valley, we’ll help make sure your crew is covered and you stay compliant.

Arizona’s Work Comp Rules Are Clear—If You Have Employees, You Need Coverage

Under Arizona law, every employer—public or private—with one or more employees must carry workers’ compensation insurance. That includes part-time workers. For contractors, there are no exceptions. If you have a crew, you need a policy. Period.

There are a few special cases:

Sole Proprietors 

1 owner with no employees aren’t required to carry workers’ comp on themselves.

Independent Contractors

if the sub you hire has a contractor license, they're a Subcontractor. If they don't, they are working under your license and considered your employee - whether you pay them on a 1099 or W-2. 

Corporate Officers or LLC Members 

2 owners (only if each has 50% ownership) with no employees are not required to have a WC policy.

We’ll help you sort through what’s required, what’s optional, and what makes the most sense for your business.

What a Workers’ Comp Policy Covers

If a team member is injured on the job, your policy will help pay for:

• All necessary medical treatment
  
• A portion of lost wages while they recover (indemnity payments)
  
• Long-term disability or impairment benefits
  
• Death benefits to the worker’s family if the worst happens
  
• Employer liability coverage in rare situations where you’re still exposed to a lawsuit
  
  

Workers’ comp doesn’t just check a legal box—it’s a real safety net for both your business and your team.

Construction Is Risky—That’s Why Coverage Matters

Arizona’s contractors face some of the toughest job site risks—falls, equipment injuries, power tool accidents, and heavy lifting mishaps, just to name a few.  Work Comp policies have 2 parts, Employers liability and Statutory benefits. Most owners reject coverage because it's expensive and you're never going to sue yourself.   

And while Arizona does allow workers to reject coverage by signing a waiver, most don’t—because if they do, they lose their right to benefits. As an employer, we always recommend encouraging your workers to accept coverage. It protects them, and it protects you because Statutory benefits are Sole Remedy - the injured worker can't sue you.

What Does Workers’ Comp Cost for Contractors in Arizona?

Work comp premiums are based on your total payroll and the type of work your employees do. Higher-risk trades like roofing or framing will have higher rates than electricians or painters. For example:

• Roofing might cost $15 per $100 of payroll
  
• Interior painting might cost closer to $5 per $100 of payroll
  
  

Your claims history also affects cost. Contractors with fewer incidents pay less over time through something called an Experience Modifier. Arizona’s average work comp rates have gone down in recent years thanks to safer job sites—but that savings only comes if you keep claims low.

We’ll help you understand your classification codes, estimate costs, and build a policy that works within your budget.

Need a Workers’ Comp Certificate but Have No Employees?

If you’re a sole proprietor working alone, you’re not required to carry workers’ comp—but some GCs and job sites may still ask for a certificate. That’s where a Ghost Policy comes in.

A Ghost Policy is a workers’ comp policy that covers no actual employees—it’s just there to show proof of coverage when a contract demands it. These policies are low-cost and common in Arizona’s subcontractor community.

We set up Ghost Policies all the time for tradesmen who don’t technically need coverage but need to meet requirements to get the job.

We Don’t Just Sell Policies—We Help You Manage Risk

Workers’ comp can get complicated, especially during claims. We’re here to walk you through it.

JP Insurance helps contractors set up safety plans, understand how and when to report injuries, and work with the insurance carrier to make sure your claim is processed correctly. If something goes wrong, call us—we’ll help you figure out next steps and avoid delays.

And if you ever need to file a waiver, we can provide the official Arizona form to help you opt out of coverage legally (for owners or corporate officers).