In Arkansas, workers’ compensation insurance is required for all businesses with three or more employees.1 This includes full-time and part-time employees and subcontractors.
Workers’ comp — often called workman’s compensation — provides coverage if an employee is injured while on the job. Some of the expenses commonly covered by this type of insurance include:
If you’re an Arkansas business owner who does not have workers’ comp, you may have to pay for medical expenses yourself if you’re injured on the job. You’d also find yourself out of compliance if your business is required to have this type of insurance, which could possibly result in penalties from the Arkansas workers’ compensation laws (and you could potentially face civil lawsuits from injured employees).
Many clients request proof of coverage before signing a contract, so lacking the proper insurance coverage could cost you business, as well.
Businesses with fewer than three employees do not need to fulfill this requirement. However, there are some exceptions within this category.
Arkansas workers’ compensation laws do not apply to the employment of the following types of workers:
However, even if you or your workers are exempt from the requirements for workers’ comp in Arkansas, you may want to consider getting coverage. This can help protect you and your business financially after a workplace accident.
In order to qualify for self-insurance, businesses must meet a number of requirements, including:
Business owners must submit an application to the Arkansas Workers’ Compensation Commission. If approved, they will receive a self-insurer certificate which must be renewed annually.
Residential contractors may also be exempt from certain requirements for workers’ comp. Arkansas permits these types of contractors to exclude themselves from coverage in their insurance contract if they fall into one of the following categories:
To receive a certificate of non-coverage, you must apply to the Arkansas Workers’ Compensation Commission. If approved, you are only exempted from obtaining coverage for yourself and must still provide workers’ comp coverage for any qualifying employees.2
Workers’ comp coverage is the responsibility of the employer and begins from an employee’s first minute on the job. Employees should never have to pay for this insurance or have it taken out of their pay.3
Workers’ compensation insurance helps pay for the costs of work-related injuries to employees and covered business owners, such as:
Employees must report any injuries to their employer or supervisor immediately or as soon as possible after receiving emergency treatment. Employees are encouraged to report all injuries, even those which don’t require medical attention right away.4
For example, small cuts which do not require stitches could still potentially develop an infection, so it’s important to report the incident at the time it occurs in case medical treatment is needed in the future.
If an employee becomes temporarily or permanently disabled as the result of a work-related accident, they are 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.
Employers have certain obligations in addition to fulfilling their workers’ comp coverage requirements. These responsibilities include:
Failure to comply with any of these responsibilities or obtain the required workers’ compensation coverage may result in penalties from the state.
The cost of workers’ compensation coverage can vary widely from one business to the next. Insurance providers weigh a number of different factors when determining rates, such as:
NEXT Insurance offers easy and affordable workers’ compensation insurance for businesses in Arkansas.
You can complete the entire process of getting a quote and applying for coverage online. It only takes about 10 minutes to enter your information, review your coverage options and get a certificate of insurance.
If you have any questions, our U.S.-based insurance advisors are standing by to help.
Start an instant quote online today.
Workers’ compensation insurance is just one of several insurance policies that most businesses need for financial protection. Here are the other types of insurance you may need to be covered for a variety of common business risks:
Just about every business needs general liability insurance, which covers common workplace accidents that affect a third party, such as customer injuries or damages to someone’s property.
Professional liability insurance provides financial protection against claims of professional negligence and can help cover added expenses if you make a mistake at work.
If you use vehicles for work, you’ll need commercial auto insurance to cover any potential accident-related costs. This applies for business-owned vehicles as well as personal vehicles you drive for work.