Arkansas workers' comp 101

Understanding workers’ comp insurance for Arkansas small business owners

Owning an Arkansas small business is an exciting adventure that consists of both opportunities and challenges. For most business owners, it’s a dream to start a company that offers flexibility and financial freedom. However, during the initial business start-up phase, entrepreneurs overlook the need for important small business insurance products.

One of the most important insurance coverages for companies with employees is workers’ compensation insurance. Any organization in Arkansas with three or more workers has to maintain workers’ comp coverage for their employees. 

For new entrepreneurs, having to maneuver through workers’ compensation laws and regulations can be intimidating. To help familiarize yourself with the coverage, we have compiled a list of the 10 most essential facts about Arkansas workers’ compensation insurance.

10 things to know about workers’ compensation in Arkansas

  • Arkansas workers’ compensation covers the medical expenses and benefits of an employee who has suffered an injury while on the job
  • Businesses with three or more employees must have workers’ compensation insurance for their team members
  • Business owners are required to display a poster of instructions that outline workers’ comp benefits and processes in the workplace 
  • The following types of employees are not required to be covered by workers’ comp insurance in Arkansas:
    • Agricultural farm labor
    • Domestic help
    • Non-profit employees
    • Railroad workers
    • Maritime workers
  • Sole proprietors and independent contractors don’t need to maintain workers’ comp in the state of Arkansas
  • Workers’ compensation benefits wouldn’t be extended to injured employees if the team member’s workplace injury was a result of drug use, alcohol, or a violation of company policies
  • Companies who fail to comply with Arkansas’ workers’ compensation laws could pay as much as $10,000 in fines
  • Employees who are injured at work will need to complete a First Report of Injury or Illness form and return it to their employer right away
  • Workers’ compensation benefits for an injured employee could include:
    • Wage replacement
    • Temporary or permanent disability benefits
    • Death benefits
    • Medical expense coverage
    • Ongoing physical and occupational therapy

For disputes, all claims must be filed with the Arkansas Workers’ Compensation Commission

Remember, every situation is different and state workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

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