Arizona's ROC lists alarm systems in the scope of C-67 Low Voltage Communication Systems, so an alarm company's license often sits in that class. The license doesn't set the workers comp classification. Installers you dispatch and direct are typically employees, and an owner holding 50% or more joins the policy only if the carrier accepts that owner's written election.
For an Arizona alarm company, the workers comp statutes mostly decide who counts as your employee. Technicians you hire and dispatch plainly do. The harder calls come with installers paid per job during a rollout, and with owners who still run installs themselves.
| Rule | What It Means for an Alarm Company | Source |
|---|---|---|
| Statutory employer | If you keep supervision or control of an outside installer and alarm work is part of your trade, that installer and anyone working for them may count as your employees. | Arizona Revised Statutes 23-902 |
| Sole proprietor waiver | A one-person installer hired as an independent contractor may waive coverage on a form that the installer and your carrier both sign and date. | Arizona Revised Statutes 23-961 |
| Owners below 50% | A working LLC member or working shareholder under that share is treated as an employee. | Arizona Revised Statutes 23-901 |
| Owners at 50% or more | On the policy only through a written election that the carrier accepts by endorsement, at its discretion; working partners and sole proprietors elect in the same way. | Arizona Revised Statutes 23-901 |
| Employee rejection | A technician may turn down coverage only in writing and only before an injury. | Arizona Revised Statutes 23-906 |
| License class | The Registrar of Contractors lists alarm systems within C-67 Low Voltage Communication Systems. | Arizona Administrative Code R4-9-102 |
Holding an ROC license class doesn't give you a workers comp class code. One governs what you may contract to install; the other comes from the carrier's look at what your technicians do day to day. An owner who elects in carries a statutory assumed wage of no less than $600 a month, and the election itself is a conversation to have with the carrier. Every trade's version of these rules is on the Arizona statutory employer rule page.
Payroll here falls under NCCI's classification system. We could find no official Arizona class list open to the public, which is why no Arizona code numbers appear on this site; your carrier sets the classification after looking at the jobs your crews run. Spell out each one: intrusion panels, cameras, access control, fire alarm devices and any line-voltage circuits your own people pull. If you already hold an Arizona policy, the declarations name the classifications in use today. California's alarm classification carries no weight here, and workers comp classification codes shows what each state does publish.
Illustrative scenario
Illustrative only. A Tucson alarm company holding C-67 Low Voltage Communication Systems wins a contract to put intrusion panels in a chain of stores. It brings on a one-person installer and a three-person crew from another company, and its own project lead sets the order of stores and inspects every install. Alarm work is its trade and it keeps control, so both may count as its employees under Arizona Revised Statutes 23-902. The one-person installer signs a sole proprietor waiver that the company's carrier also signs and dates; the crew's owner sends a current certificate. Nevada would sort this out under its principal contractor statute instead, and a paving company's license wouldn't fit the work.
Paying per Install With Nothing on File
Alarm companies often pay outside technicians a flat fee per install and keep only the invoice. At audit, an installer with no certificate and no signed waiver may be treated as your employee if you directed the work. Collect one or the other before the first install, and file it with that installer's invoices.
This coverage is about your employees' injuries. When a burglar beats the system, a technician's drill punctures a water pipe, or a service van rear-ends someone, the claim usually goes to general liability or commercial auto. Compare Nevada alarm installer workers comp, or all three states on workers comp for alarm installers.
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The ROC lists alarm systems in the scope of C-67 Low Voltage Communication Systems. Confirm with the Registrar that your mix of security, camera and fire alarm jobs fits that class. Your workers comp classification is a separate matter that the carrier settles from the work.
They may be. When alarm installation is your line of business and you direct how and when those techs work, Arizona Revised Statutes 23-902 can fold them, and any helpers they bring, into your workforce for workers comp. A one-person installer can sign a sole proprietor waiver alongside your carrier; a company with its own crew can hand over a certificate.
Only through an election. Arizona treats a working member holding 50% or more as an employee if the carrier agrees to it in writing by endorsement, and agreeing is up to the carrier. If you both still run installs, raise it before the policy starts and keep the carrier's answer on file.
An employee can opt out under Arizona Revised Statutes 23-906, provided the rejection is in writing and signed before any injury. It is the technician's decision, and the statute addresses employees, not owners. Keep any signed rejection on file for the auditor.
NCCI has proposed a 0.2% average decrease effective January 1, 2027. It covers all classifications, not alarm work alone, and stays a proposal until the state insurance regulator decides. What you pay still depends on your classifications, claims and the carrier's rates.
7 official sources
Reviewed by David Gleason, Principal, on .
Next Level Experience. Insurance Done Right.
Arizona alarm company workers comp, from per-install techs to owner elections.
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