Is workers comp required in Arkansas?
Arkansas generally requires coverage for businesses with three or more employees, and construction subcontractors can be covered by a lower threshold. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Arkansas
Arkansas employers buy workers comp from private insurance companies, and businesses that are hard to place can obtain coverage through the state's residual market or a state-chartered carrier where one exists.
Who sets the rules
The Arkansas Workers' Compensation Commission oversees workers comp in Arkansas. In Arkansas, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Arkansas employers should know
- Poultry, timber and manufacturing operations are common in Arkansas and tend to be rated as higher-hazard classes.
- General contractors can be responsible for the employees of uninsured subcontractors, so certificates matter on every job.
How premiums are calculated
As in most states, AR premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for Arkansas employers
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Arkansas workers comp FAQ
Is workers comp required in Arkansas?
Arkansas generally requires coverage for businesses with three or more employees, and construction subcontractors can be covered by a lower threshold. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Arkansas?
The Arkansas Workers' Compensation Commission administers the workers compensation system in Arkansas.
Can I buy Arkansas workers comp from a private insurer?
Yes. Private insurers write workers comp in Arkansas, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Arkansas?
In Arkansas, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. As in most states, AR premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period.