Workers’ Compensation in Arkansas

• Is Arkansas Workers’ Compensation insurance required?
• How does Arkansas Workers’ Comp work?
• How much is Workers’ Compensation in Arkansas?
• Who is exempt from Arkansas Workers’ Compensation?
• How NEXT helps Arkansas small business owners

Is Arkansas Workers’ Compensation insurance required?

The Arkansas Workers’ Compensation Commission states that workers’ compensation insurance is required for all businesses with three or more employees. This includes full-time and part-time employees and subcontractors.

Employers have other obligations for their workers’ comp coverage, including:

• They must display a poster with instructions for employees in the workplace.
• Employers and the insurance company have the right to choose doctors to treat injured workers, but a notice of their choice must be given to employees.
• All employee injury reports and medical bills must be sent to their insurance representative.

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How does Arkansas Workers’ Comp work?

Workers’ compensation insurance provides coverage if an employee is injured or becomes ill from their work. Some of the expenses commonly covered by this type of insurance include:

• Lost wages
• Permanent injury benefits
• Death benefits
• Emergency treatment
• Medical appointments
• Hospital care
• Surgery
• Prescription drugs
• Medical supplies and devices
• Rehabilitation services

Workers’ comp coverage is the responsibility of the employer and begins from an employee’s first minute on the job. Employees never pay for this insurance or have it taken out of their pay.

If you’re an Arkansas business owner who does not carry a workers’ comp owners policy, you may have to pay for medical expenses yourself if you’re injured on the job.

Workers’ Comp income benefits in Arkansas

If an employee becomes temporarily or permanently disabled as the result of a work-related accident, they may be eligible for lost wages benefits through workers’ comp. Arkansas law also dictates that funeral costs and survivor benefits are provided in the event of an employee death on the job.

These benefits are managed by the Special Funds Division of workers’ compensation and are determined by an Arkansas workers’ compensation settlement calculator.

If a business owner fails to comply with their workers’ comp insurance responsibilities or obtain required coverage, it may result in penalties from the state. Your business could also potentially face civil lawsuits from injured employees.

Learn more about workers’ compensation coverage.

How much is Workers’ Compensation in Arkansas?

Workers’ compensation costs vary across industries. Factors that influence price include:

• The number of employees and the type of work they do.
• Your total payroll.
• Your insurance claims history.
• The locations where you do business.

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Who is exempt from Arkansas Workers’ Comp insurance?

Businesses with fewer than three employees, with some exceptions, are not required to have workers’ compensation insurance.

Arkansas workers’ compensation laws also do not apply to the employment of the following workers:

• Agricultural farm labor
• Domestic help
• Railroad and maritime workers
• Employees of religious, nonprofit or charitable organizations
• Personnel covered by federal law

Residential contractors can also be exempt from some requirements for workers’ comp. Arkansas permits these types of contractors to exclude themselves from coverage in their insurance contract if they are a:

• Sole proprietor
• Self-employed employer
• Partner
• Officer of a corporation
• Member of a limited liability company (LLC)
• Member of a professional association

Learn more about Arkansas general contractor license and insurance requirements.

To receive a certificate of non-coverage, you must apply to the Arkansas Workers’ Compensation Commission. If approved, you’re only exempted from obtaining coverage for yourself. Employers must still provide workers’ comp insurance for employees.

Even if your business is exempt from the requirement for workers’ comp in Arkansas, you still may want coverage to help protect your business financially after a workplace accident.

How NEXT helps Arkansas small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

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