Contractor Insurance You Can Trust
Workers’ Compensation Insurance Requirements in Arkansas
Arkansas requires workers’ comp once you reach 3 employees, with felony-level penalties for coercing workers into fake exemptions — Trade Safe makes compliance simple.
- ✓Same-day Certificates of Insurance (COIs)
- ✓Quotes from dozens of A-rated carriers
- ✓Hard-to-place trades welcome (roofing, demo, more)
- ✓20+ years exclusively in contractor insurance
Or call (234) 231-8427 — we answer fast.
Workers’ Compensation Insurance Requirements in Arkansas
Arkansas sets its mandatory-coverage threshold lower than many neighboring states, and its licensing board layers additional requirements on top for contractors with employees. The state also treats misuse of its no-employee exemption process as a serious offense, which makes accurate classification of your workforce especially important.
Arkansas Workers’ Compensation Legal Requirements
Arkansas generally requires workers’ compensation coverage once an employer has 3 or more employees, administered by the Arkansas Workers’ Compensation Commission (AWCC) under Ark. Code Ann. § 11-9-101 et seq.
- Threshold: coverage is mandatory once a business reaches 3 or more employees
- No-employee exemption: sole proprietors, partners, and LLC members with no employees can apply for an AWCC Certificate of Non-Coverage (Form AR-A) for a $50 fee
- Penalties: fines up to $10,000 or a Class D felony for failing to secure required coverage, plus civil penalties up to $1,000 per day of violation
- Contractor licensing: the Arkansas Contractors Licensing Board requires proof of coverage for Commercial and Residential licenses when the contractor has employees
How Arkansas’s Workers’ Comp System Works
System type: Private Carrier Market
Arkansas has no state-run insurance fund; coverage is purchased through licensed private carriers or approved self-insurance. In the Oregon DCBS 2024 study, Arkansas ranked 50th of 51 jurisdictions overall, with an index rate of just 48% of the national median — making it one of the least expensive states in the country for workers’ comp coverage.
How Arkansas’s Rates Compare by Trade
| Trade (NCCI Class Code) | National Rank (of 51) | Rate per $100 of Payroll |
|---|---|---|
| Roofing (Class 5551) | 50th of 51 | $1.62 |
| Electrical Wiring (Class 5190) | 49th of 51 | $1.17 |
| Plumbing NOC (Class 5183) | 48th of 51 | $1.31 |
Source: Oregon Dept. of Consumer and Business Services, 2024 Workers’ Compensation Premium Rate Ranking Study (published June 2025) — the only study benchmarking all 50 states plus DC on a common industry mix.
Filing a Workers’ Comp Claim in Arkansas
Claims are administered by the Arkansas Workers’ Compensation Commission. An injured employee must notify the employer immediately or by the close of the next business day, and the employer must file Form 1 (First Report of Injury or Illness) within 10 days of the date of disability or notice, whichever is later, for injuries involving more than 7 lost work days. Late filing carries a $500 fine.
Penalties for Non-Compliance
An Arkansas employer required to carry coverage who fails to do so faces a fine of up to $10,000 or a Class D felony charge, plus civil penalties of up to $1,000 per day of violation; the AWCC can also petition a circuit court for an injunction to stop the business from operating until it complies (Ark. Code Ann. § 11-9-406).
Resources: Arkansas Workers’ Compensation Commission hub, AWCC — Basic Facts, AWCC — Certificates of Non-Coverage
How Much Does Workers’ Comp Insurance Cost in Arkansas?
Arkansas has some of the lowest workers’ comp rates in the country across all three trades studied. Even roofing, typically the highest-cost class nationally, comes in well below the national median in Arkansas.
| Trade | Estimated Cost per $100 Payroll | What Drives It |
|---|---|---|
| Roofing | $1.62 (per the Oregon study’s Class 5551 rate) | Arkansas’s overall low-rate environment keeps even higher-risk trades affordable |
| Electrical | $1.17 (per the Oregon study’s Class 5190 rate) | Among the lowest electrical rates nationally |
| Plumbing | $1.31 (per the Oregon study’s Class 5183 rate) | Low relative claims frequency and severity statewide |
What Moves the Price Up or Down
- Your experience modifier and claims history with Arkansas carriers
- Whether you have 3+ employees (triggering mandatory coverage) or qualify for a Certificate of Non-Coverage
- Total payroll and correct NCCI class-code assignment
- Compliance with Arkansas Contractors Licensing Board proof-of-coverage requirements
Rates above are drawn from the Oregon DCBS 2024 Workers’ Compensation Premium Rate Ranking Study and represent national benchmark comparisons, not a quote. Your actual premium depends on your experience mod, claims history, and payroll — get a Trade Safe quote for exact Arkansas pricing.
Frequently Asked Questions
How many employees trigger mandatory workers’ comp in Arkansas?
Generally 3 or more employees. Businesses with fewer than 3 employees may qualify for a Certificate of Non-Coverage if they have no employees to cover.
Does Arkansas have a state workers’ comp fund?
No. Arkansas has no state-run fund. Coverage comes from licensed private carriers or approved self-insurance.
Can a sole proprietor skip workers’ comp in Arkansas?
Sole proprietors, partners, and LLC members with no employees can apply for an AWCC Certificate of Non-Coverage (Form AR-A) for a $50 fee.
What happens if I operate without required coverage in Arkansas?
You face a fine of up to $10,000 or a Class D felony charge, civil penalties of up to $1,000 per day, and possible court injunction halting your operations.
Workers’ compensation requirements change; always verify current rules with the Arkansas Workers’ Compensation Commission before making coverage decisions.
Back to State Coverage
← Contractor Insurance in ArkansasAll contractor insurance coverage options available in ArkansasTrade-Specific Coverage in Arkansas
Roofing Contractor InsuranceRoofing-specific coverage in ArkansasElectrical Contractor InsuranceElectrical-specific coverage in ArkansasPlumbing Contractor InsurancePlumbing-specific coverage in ArkansasReady to Get Covered in Arkansas?
Trade Safe Insurance specializes in contractor coverage. Get a quote built for workers-comp contractors in Arkansas — fast, no guesswork.