Risk Management Overview


A.R.S. Section 41-621 through Section 41-625 provide for insurance or self-insurance of the following:

  • All state-owned buildings, including those of the three state universities.
  • All property owned by the state.
  • All officers, agents and employees of the state against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities, except as prescribed by statute.
  • Workers' compensation injuries of state employees.
  • Environmental damage and health threats associated with state-owned/operated property and facilities.

A.A.C., Title 2, Chapter 10 of the Administrative Code supplements the statutes and provides guidelines for coverage and claims procedures, loss prevention programs, purchase of insurance, environmental losses, and the Provider Indemnity Program.  Risk Management's responsibilities for insurance and self insurance include:

  • Evaluation of risk financing alternatives.
  • Procurement of commercial insurance when appropriate.
  • Allocation of costs for property, liability and worker's compensation among agencies.

Liability Coverage's & Limitations

A.R.S. Section 41-621, provides coverage for all officers, agents and employees of the state and its departments, agencies, boards and commissions against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities and within the course and scope of employment or authorization.


Volunteers acting at the direction of state officials and within the course and scope of their state-authorized activities receive the same coverage as employees. Volunteers may be covered for workers' compensation if they meet the criteria set forth in A.R.S. Section 23-901.

Workers' Compensation (For more information see: Agency Information Workers' Compensation)

The state is self-insured for workers' compensation coverage.

Automobile Coverage

State vehicles: Coverage is provided to state employees when driving state vehicles within the course and scope of employment and authorization.

Private vehicles: Liability coverage is provided on an excess basis for private vehicles driven within the course and scope of employment and authorization. Physical damage is not covered.

Employee Owned Property (Including Vehicles)

Employee-owned property is generally not covered.

Aircraft Coverage

All pilots should contact Risk Management for specific requirements before flying on authorized state business. Risk Management must approve each application to fly on state business before coverage will apply.

Travel Outside the United States

Prior to travel outside the United States while acting within the course and scope of employment, contact Risk Management for specific instructions and assistance.

Property Coverage & Limitations

A.R.S. Section 41-621, provides coverage for all state-owned buildings, contents and property. Certain restrictions on coverage are detailed in A.R.S. Section 41-622 and A.A.C., Title 2, Chapter 10, Article 1.

Certificates Of Insurance

Prior to approving a Certificate of Insurance, the Risk Management Insurance Analyst will need to review:

  • Your agency "Request for Certificate of Insurance", and
  • Written agreement, contract or other document requiring evidence of insurance. Approval of Certificate will require that this documentation not conflict with certain statutes and/or rules that prohibit indemnification.

Loss Prevention

For more information see: Agency Information Loss Prevention
Arizona Revised Statutes require each agency to conduct risk identification and assessment and implement a Loss Prevention Program to reduce the frequency and severity of losses in the following areas:
  • Employee safety in the work environment
  • Real and personal property protection
  • Federal and State Standards for Industrial Hygiene and Environmental Protection
  • Negligent acts that cause third-party claims
Risk Management provides Loss Prevention Consultants, Industrial Hygienists, and Environmental Specialists to assist agencies in developing and implementing loss prevention programs. The consultant can also provide assistance in solving everyday loss prevention problems such as:
  • Fire Protection
  • Security
  • Motor Vehicle Safety
  • Construction Safety
  • Industrial Hygiene
  • Occupational Safety and Health
  • Air and Water Quality
  • Personal Protective Equipment
  • Office Ergonomics
  • Hazard Communication
Risk Management regularly offers Training Classes to provide instruction in the above-mentioned exposures.  Risk Management also maintains a video library with an emphasis on safety-related topics. Please email us at [email protected] for additional information.

Workers' Compensation

For more information, see: Agency Information Workers' Compensation
Primary Workers' Compensation responsibilities include:
  • Pay timely medical, surgical, hospital and disability benefits as provided by law under the Arizona Workers' Compensation Act
  • Evaluate and initiate cost containment programs
  • Coordinate statewide Return-to-Work Programs
  • Pursue recoveries from parties contributing to or causing injury to covered persons
Who Is Covered?
Workers' Compensation benefits are provided pursuant to Title 23 of the Arizona Revised Statutes. State employees cannot reject workers' compensation. This coverage is the exclusive remedy for state employees injured in the course and scope of their employment. The following individuals are entitled to workers' compensation coverage:
  • Employees
  • Volunteers specifically referenced in A.R.S. Section 23-901
  • Employees of Superior Courts of all Arizona counties except Maricopa
Questions concerning who is covered should be directed to the Insurance Department at Risk Management at (602) 542-5185.
To report an Industrial Injury call (800)837-8583
Injuries requiring medical treatment may also be reported to Risk Management through the Early Notification telephone line by dialing (800) 837-8583.
Any fatality must be reported immediately to the state OSHA Office and Risk Management.
An injured worker should complete the top portion of the "Worker's & Physicians Report of Industry (form 102)" made available by the initial provider of medical treatment. The medical provider is also required by law to file a copy of the form with the Industrial Commission and Risk Management.
Wage loss benefits are payable at 66 2/3% of the injured worker's gross monthly salary, up to the maximum as set by the Legislature, per month, and is payable every 14 or 30 days, depending on the type of disability. No wage loss benefit is payable for the first 7 days, if total time lost is less than 13 calendar days. This waiting period occurs only once during a claim. If a claim has been accepted, authorized medical treatment is paid pursuant to the Arizona Fee Schedule with no out-of-pocket expenses on behalf of the employee.
If An Employee Is Injured
  • Attend to the injured worker immediately and arrange for necessary medical attention. If the injury is serious, call 911.
  • Call the Early Notification phone line at (800) 837-8583.
  • Accompany the injured worker to the doctor if he/she is unable to drive.
  • Obtain information about the incident or injury and fill out the agency specified report of injury form.
  • List and interview all witnesses.
  • Examine the area of the accident, and secure any equipment, machines or vehicles, etc., for investigation and recovery purposes.
  • If there is any reason to doubt the validity of a claim, provide information to Risk Management.
  • If information disproving the validity of a claim or the extent of the injury is discovered at a later date, report it immediately to Risk Management.
  • Maintain contact with the injured worker.
  • Contact Risk Management at 602-542-5218 or email with any questions.
  • Always look for ways to prevent this and other incidents from happening and advise your loss prevention coordinator.
When An Employee Returns To Work
  • Request a doctor's release before permitting a return to work.
  • Contact Risk Management at 602-542-5218 or email with the date the employee is to return. This is to prevent potential overpayment of benefits.
  • If the employee is released to modified work duties, review any limitations with the employee. Make certain you have specific work limitations from the employee's physician.
  • Be sure to review the agency modified duty policy. A copy can be obtained from the Human Resource division of your agency.
  • If you have any questions regarding limitations, accommodations, or the employee's work schedule, call Risk Management at 602-542-5218.

Policies and Procedures