Arkansas Workers Comp Insurance

Workers' compensation insurance in Arkansas works two ways: it protect your employees and it protects your business. If an employee is injured on the job, work comp insurance will pay for medical care, disability - whether permanent or temporary, and death benefits. If you are found to be liable for employee injury or illness, workers' compensation will protect you and your business. This type of insurance is often mandatory.

Most employers in Arkansas with three or more employees are required by law to have workers’ compensation insurance coverage for their employees.  There are exceptions to the three-or-more requirement, so employers with fewer than three should check with authorities before assuming they do not fall under the workers’ compensation laws. Employers in doubt may contact their agent or the commission’s Information Officer, its Operations/Compliance Division, or the Legal Advisor Division.

The insurance is purchased by the employer; no part of it should be paid for by employees or deducted from their pay. The coverage is provided through a workers’ compensation insurance policy or by the employer receiving state approval to be self-insured for such purposes. Any other arrangement by the employer’s representative may constitute fraud.

Employers failing to comply with these laws may be subject to penalties by the state and, in addition, may lose protections afforded them by workers’ compensation insurance and the laws of the state.

AR Workers Comp Insurance Special Requirements 

• In Arkansas, having three or more employees requires a company to have coverage.
• If you work for someone else you will not be covered by their insurance policy unless you are an employee. This requires independent contractors to have their own workman’s compensation insurance
• Arkansas has a private market for insurance and also has an assigned risk pool for businesses struggling to secure coverage
• Sole proprietors and partners are excluded from coverage, but have the option to opt in
• Corporate officers or members of LLCs are included in coverage, but have the option to opt out