How does workers' comp work in Arkansas?

Arkansas is an NCCI state meaning it uses the National Council on Compensation Insurance to determine rates on Workers' Compensation Insurance and to administer the assigned risk in the state. The assigned risk is for employers who cannot find coverage on the open market. This may be because of the industry your business is in, the type of risk your business is in or because of the loss history of your particular business. The assigned risk is there for business who struggle getting coverage elsewhere.

Most all employers in the state with three or more employees are required to carry Workers' Compensation Coverage. There are some exceptions to the three employee rule. Some employers with less than three employees are required to have coverage and some business with three or more employees qualify for an exception to this requirement. It is important you consult an agent or the proper state agency to determine if your business is required to carry Workers Comp Coverage.

The state of Arkansas does enjoy some of the best rates in the country. Still far too many employers pay more than they have to for workers compensation coverage. Each industry has specific discounts that may apply to your industry and some carriers discount some industries more than others. At Workers Compensation Shop.com we partner with dozens of carriers rather than just a select few. This gives our agents the ability to negotiate better coverage and lower rates for your business.

Call today to get a free policy review at 888-611-7467, or you can get a quote online. It only takes a few minutes.

Workers' Comp Rules & Information for Arkansas

State Insurance Directives Regarding Covid-19

During the effective period, insurers are prohibited from cancelling/nonrenewing policies for the non-payment of premium for Arkansasans diagnosed with/positively tested for COVID-19.  This moratorium is not automatic – to be eligible, affected policyholders must request this extension from their insurance carriers.  This is not a waiver, it is only an extension/grace period.  Policies may still be cancelled/nonrenewed for other allowable reasons.

Mandatory order in effect from 03/11/2020 - 05/10/20

State Orders Regarding Insurance Claims Related to Coronavirus

Insurers cannot enforce policy/statutory deadlines related to claims or coverage until 90 days after the state of emergency is lifted.  Examples include deadlines for the submission of a sworn proof of loss, examinations under oath, medical exams, physical inspections of property, and other deadlines placed on the policyholder where failure to comply could result in the forfeiture, limitation, or waiver of policyholder rights to benefits under a policy. Also, CA law mandates that insurers provide at least 36 months, plus additional 6 month extensions for “good cause,” for insureds to collect full replacement cost and ALE benefits for residential property.  CA declares that delay in reconstruction due to COVID-19 is considered “good cause” entitling insureds to the extension

Arkansas Workers' Compensation Commission

Post Office Box 950
Little Rock, Arkansas 72203-0950
800-622-4472

What is Workers' Compensation?

The basic purpose of the Workers’ Compensation is to provide wage replacement benefits and medical treatment for employees who have been injured or become ill due to a work-related injury or illness. It prevents the employer from bearing the costs of injuries that occur during normal business operations.

How does workers comp help my employee?

Employees benefit from workers comp coverage in Arkansas by having lost wages covered while they are hurt or sick and not able to work. It also pays for medical costs they might incur as a result of the sickness or injury.

How does workers comp help my business?

Your business benefits from workers' compensation coverage, by not being liable for injuries that occur as a part of normal business operations. This applies whether the injury was the fault of the business or was caused by negligent actions of the employee. You can move forward with your business operations knowing that if one of your employees is injured because of something that happens as a normal part of your business operations, your business is not liable for the costs.

Arkansas is an NCCI State

In Arkansas, businesses that are unable to find workers comp coverage on the open market are eligible for state fund coverage. NCCI is the administrator of the state fund in Arkansas. NCCI gathers data, analyzes industry trends and prepares objective insurance rate and loss cost recomendations, as well as providing coverage for business that cannot find it on the open market.

Arkansas Workers Compensation Class Codes

According to a recent report, 2 out of 5 employers are likely misclassified into an NCCI class code with higher rates than the correct code. One of the primary components of pricing workers' compensation insurance is classifying a risk or workplace exposure within the proper NCCI workers compensation class code. Incorrect risk classifications by insurance agents and/or underwriters often results in premium that is higher or lower than it should be. Sometimes payroll is reclassified at the time of audit.

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Health Care
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
Arkansas Work Comp Information

Pay as You Go Work Comp

We offer programs with flexible payment options because we know how crucial cash flow can be to a business. We've developed Pay as You Go Work Comp Coverage to help lower up front costs and offer monthly reporting for your premium payments.

Call today at 888-611-7467 to see if one of our flexible payment options are right for you.

Let Workers Compensation Shop.com help your business navigate workers comp insurance in Arkansas.

What Does Workers' Compensation Insurance Cover?

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Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
Injuries and accidents happen. A workers' comp policy is a no-fault system that pays for these accidents and claims. It's required by law in most states.
  • Loss of income for employees unable to perform job duties
  • Medical expenses for employees injured on the job
  • Retraining expenses for employees unable to return
  • Permanent injury or disability for lasting injuries
  • Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
...
In some instances, workers' compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.
  • Injuries resulting from a violation of the law
  • Incidents resulting from employees' use fo drugs or alcohol
  • Injuries that did not occur in connection with the job
  • Clear company policy violations
  • Injuries that did not occur in connection with the job

Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.

Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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