Workers’ Compensation in Arkansas

Save on Arkansas Workers’ Comp with discounts up to 25%.*

What can be covered by Arkansas Workers’ Compensation insurance?

Medical expenses

Medical expenses

Like exams, treatment and rehabilitation.
Lost wages

Lost wages

For employee recovery after a work injury.


To teach injured employees new skills if they can no longer do their jobs.
Permanent injury

Permanent injury

Benefits for employees who can no longer work due to injury.

Table of Contents

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.

Get a free instant quote in about 10 minutes from NEXT to see your workers’ comp insurance costs.

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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Other important small business insurance policies in Arkansas

Workers’ compensation insurance provides many important protections, but you’ll need additional coverage to protect from all the risks your small business can face.
Many Arkansas small businesses also consider:
General Liability
General Liability insurance

General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

If you or your employees drive vehicles for work, you probably need commercial auto insurance. This provides coverage for accident-related expenses in a business-owned vehicle or a personal vehicle being used for work purposes.

Commercial Property
Commercial Property insurance

Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.

Errors & Omissions
Professional Liability insurance

Professional liability insurance, also called errors & omissions insurance, provides financial protection against claims of professional mistakes and negligence.

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.