Workers' Compensation Insurance Laws in Arkansas
When you have three or more employees as an Arkansas business owner, you must carry workers' compensation coverage. This policy protects your staff and your operation from financial devastation. It helps pay for the medical expenses, ongoing bills, and lost wages for an injured or ill employee. Coverage is required at the state minimum limits or more to comply with local law. Without proper protection, your business could be required to pay fines to the state.
Common Workers' Compensation Claims in Arkansas
The Top 5 industries with the most fatal work accidents, in order:
- Construction
- Transportation and warehousing
- Manufacturing
- Crop farming
- Landscaping
The Top 7 most reported fatal injuries are, in order:
- Violence and other injuries by persons or animals
- Transportation incidents
- Fires
- Falls, slips, trips
- Exposure to harmful substances or environments
- Contact with objects and equipment
- Overexertion and bodily reaction
Some workplace accidents can be more severe. According to statistical data, 64 workers' compensation claims turned fatal in Arkansas in one recent year. Fortunately, your business's workers' compensation policy helps cover the expense of an unexpected funeral.
What Does Workers' Compensation Cover in Arkansas?
Workers' compensation coverage in Arkansas covers multiple incidents. Some of the most common that are covered are:
- Traumatic injuries
- Repetitive injuries
- Some mental or cognitive injuries
- Occupational illnesses/diseases
What Doesn't Workers' Compensation Cover in Arkansas?
Exclusions apply to any business insurance policy. Your Arkansas workers' compensation coverage will usually exclude the following events:
- Intentional injuries or illnesses
- Injuries or illnesses sustained outside of work
- Injuries or illnesses sustained while committing a crime
- Injuries or illnesses sustained under the influence of drugs or alcohol
What are the Best Workers' Compensation Insurance Companies in Arkansas?
| Top Workers' Compensation Insurance Companies | Star Rating |
| Travelers |  |
| Hanover | |
| Nationwide | |
| Builders & Tradesmen's Insurance |  |
| Liberty Mutual | |
How Much Does Workers' Compensation Insurance Cost in Arkansas?
The cost of your Arkansas workers' compensation insurance will depend on experience, industry, and loss history. Premiums are rated from low to high, and you'll fall somewhere in the range predetermined by each job type. Check out some current Arkansas workers' compensation rates by industry below, per $100 of employer payroll:
| Industry | Low Cost | High Cost |
| Carpet Cleaning | $1.10 | $2.19 |
| Dry cleaning and Laundry Service | $0.81 | $1.61 |
| Machine Shop | $1.17 | $2.33 |
| Garage Door Installation | $1.78 | $3.54 |
| Salvage yards-Automobile Recycling | $2.32 | $4.62 |
National Average Cost of Workers' Compensation Insurance
Healthcare $1,825 Per $100,000 payroll
Retail Trade $2,850 Per $100,000 payroll
Construction $7,430 Per $100,000 payroll
FAQs: Workers' Compensation Insurance in Arkansas
What is workers' compensation insurance?
Arkansas workers' compensation insurance pays for lost wages and medical expenses of an employee who is injured or becomes ill as a result of their job duties. This policy protects the business and employees from exposure. Arkansas has laws regarding workers' compensation coverage.
Is workers' compensation required in Arkansas?
If you have three or more employees in Arkansas, you must carry workers' compensation insurance by state law. The minimum liability limits or greater are mandated in order to comply with local guidelines.
How can you acquire a workers' compensation certificate in Arkansas?
Certificates of insurance prove that your Arkansas business has protection, the limits that you have for each policy, and expiration dates. Your workers' compensation coverage will be included on this certificate of insurance and can be provided by your local independent agent for free.
Why shop workers' compensation insurance with an Arkansas independent agent?
Among your other business policies, Arkansas workers' compensation insurance should be reviewed and quoted through a licensed professional. Fortunately, an independent insurance agent can help with custom quotes through top-rated carriers at no cost to your business.
Is workers' compensation taxable in Arkansas?
In Arkansas, workers' compensation benefits paid to an injured or ill employee don't typically count towards their taxable income.