In Arizona, all employers with one or more employees must carry workers’ compensation insurance, either through a private insurer or by qualifying for self-insurance if they meet specific criteria. Sole proprietors and partners are excluded from mandatory coverage but can opt-in. Corporate officers and LLC members who own at least 50% of the business are also excluded but may choose to be covered. Arizona’s system provides comprehensive benefits, including medical care, wage replacement, and vocational rehabilitation for injured workers. The Industrial Commission of Arizona oversees compliance, enforcing strict regulations and penalties to ensure that all employers adhere to the state’s workers’ compensation laws.