3-minute read

Workers’ compensation premiums next year could once again be coming down for a lot of Arizona employers.

Insurers have yet to come out with their own figures, but the National Council on Compensation Insurance has recommended a reduction averaging 9 percent in workers’ compensation premiums for 2022.

Premiums have been falling for a number of years now, dropping a cumulative 46.7% in Arizona since 2015.

Not every company, of course, has benefited to the same degree. A company’s premium depends on a multitude of factors, including the number and severity of injury claims they file, return-to-work practices, safety culture, and the industry they’re in.

Workers’ compensation insurance pays for lost wages, medical bills and the cost of rehabilitation for a worker injured on the job. It also provides death benefits and funeral expenses for the dependents of someone killed in a work-related accident or disaster.

While rates are dropping, companies will want to keep a close eye on their Experience Modification Factor, or e-mod.

The e-mod is a multiplier that insurers use to help set your workers’ compensation premiums. The e-mod is based on your workers’ comp claims history and potential for future injuries compared to others in your industry. Businesses with lower e-mods pay less for their workers’ compensation insurance.

Here are three quick tips to help keep your workers’ compensation costs down:

  1. Make sure your risk management and safety and training programs are up to snuff. Remember, an ounce of prevention truly is worth a pound of cure. Studies have shown that every $1 invested in injury prevention results in a $2 to $6 return for businesses. Even small changes such as monthly inspections of your facilities and vehicles can reduce accidents.
  2. Employers should also take care when hiring, even during a time of labor shortages, to weed out candidates who could pose either a safety or moral hazard risk to the company.
  3. Make sure your return-to-work program is designed to help injured employees return to work as soon as possible. A smart return-to-work plan typically requires job modifications that are specific to the injured worker’s position and may include reorganizing their work station or changing their daily tasks.

The Mahoney Group, based in Mesa, Ariz., is one of the largest independent insurance and employee benefits brokerages in the nation. For more information about workers’ compensation insurance coverage, contact us online or call 480-730-4920.


This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top