A Quick Self-Check Quiz for Arizona Shop Owners
Many Arizona repair shop owners aren’t sure if they actually need Workers’ Compensation. Use this quick quiz to find out if your shop has exposure – and what to do next.
■ Step 1: Answer These 8 Questions
| # | Question | Yes | No |
| 1 | Do you have anyone who helps you in the shop – even part-time, cash, or 1099? | ||
| 2 | Do helpers or techs use your tools, lifts, or equipment while working? | ||
| 3 | Could anyone who helps you get hurt while working on-site or test-driving a car? | ||
| 4 | Do you control their work schedule (when they show up, when they leave)? | ||
| 5 | Do you pay them by the hour or job, rather than having them invoice you as a true business? | ||
| 6 | Would your business still operate if that person got hurt or couldn’t work? | ||
| 7 | Are you leasing space or working under contract with another business that requires proof of Workers’ Compensation? | ||
| 8 | Are you the only person working in the shop, but you want to protect your own income if you’re injured? |
■ Step 2: Add Up Your “Yes” Answers
0-2 Yes Answers: You’re likely a true solo operator. You may not be required to carry WC – but voluntary coverage can still protect your income and fund for ongoing medical support if you’re hurt on the job. Remember that Arizona has lifetime re-open for accepted WC injuries.
3-5 Yes Answers: You likely have gray-area exposure. Even if helpers are 1099 or “just family,” the Industrial Commission of Arizona could still classify them as employees after an injury. You’re at risk of personal liability for medical bills or lost wages.
6+ Yes Answers: You definitely have Workers’ Comp exposure. If anyone gets hurt and you don’t have coverage, your shop could face fines or out-of-pocket medical claims. Time to talk to an independent insurance agent who understands Arizona’s garage market and WC laws – like Wilson Insurance.
■ Step 3: What to Do Next
If you scored 3 or higher, don’t panic—you’re not alone. Most small shops in Arizona fall into this category and simply need a quick coverage review.
PRO TIP: Even if your shop is small, WC coverage is usually very affordable—$1.14 per $100 of payroll in 2025, down from $1.25 in 2024 for general service operations with a clean record.
Bottom Line
You built your shop with your hands. Don’t risk losing it over a technicality. If you’re unsure where you stand, Wilson Insurance can help you find out in minutes—no cold calls, no pressure. Call us at 480-964-2400 when you are ready to talk.
