It protects you as the employee- the worker- if you are injured on the job.
It protects you, as a homeowner, when someone comes to your residence and performs any type of work for which they are compensated financially.
Tip: Ask for a certificate of insurance before letting anyone on your roof, cutting your trees or cleaning your pool. If a worker gets hurt while at your residence, their workers compensation insurance is primary. If they have NO workers compensation, you may be sued. Your homeowners insurance in the state of Arizona will NOT cover the workers injuries.
Since Workers Compensation is MANDATORY in the state of Arizona, when an employer has one or more W-2 employees, this insurance protects the business owner when their workers are injured on the job.
If an employer does NOT have workers compensation and the employee is injured on the job, the worker can file a civil lawsuit against their employer. The Special Fund Division of Arizona will pay for the injuries of the worker and charge the business owner the medical costs incurred plus a 10% penalty or $1000, whichever is greater.
The first offense is a civil penalty of $1,000 and a Class 6 felony.
The second offense is a civil penalty of $5,000 and a Class 6 felony.
The third offense is a civil penalty of $10,000 and a Class 6 felony.
These penalties can be fined within 5 years of NOT having workers compensation insurance, even if NO claims have been filed.
If you are an employee and you are injured on the job, contact your human resource department or your manager to file a workers compensation claim.
Always make sure you protect yourself and the ones you love.
Julie Jakubek, MBA 4650 E Thomas Rd Phoenix, AZ 85018 480-949-5670 www.JulieJakubek.com