Who Needs Workers' Comp in Arkansas?
Under the Arkansas Workers' Compensation Law (Ark. Code Ann. § 11-9-101), employers with three or more employees must carry workers' compensation insurance. However, construction industry employers must carry coverage regardless of the number of employees — even a sole proprietor with one helper needs a policy. Corporate officers count toward the employee threshold but may elect exemption.
Penalties for Non-Compliance
Employers who fail to carry required coverage face fines up to $10,000, criminal misdemeanor charges, and cease-and-desist orders from the Arkansas Workers' Compensation Commission. Uninsured employers are personally liable for all medical expenses, disability benefits, and death benefits. Employees of uninsured employers can also file civil lawsuits without the typical workers' comp limitations on damages.
How Arkansas Rates Work
Arkansas uses NCCI class codes and operates as a competitive rating state. Carriers file their own rates with the Arkansas Insurance Department. Your premium depends on classification codes, payroll, experience modification rate, and carrier pricing. Arkansas generally has moderate workers' comp costs, and shopping multiple carriers can yield significant savings.
Common Arkansas Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 9101 | Restaurant NOC | Medium |
| 7219 | Trucking NOC | Medium-High |
| 5403 | Carpentry NOC | Medium-High |
| 5606 | Contractors — General | Medium-High |
| 5551 | Roofing — All Kinds | High |