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Workers’ Compensation Insurance in Arkansas

Workers' Compensation Insurance in Arkansas

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If your business has employees in the state of Arkansas, you’ll need to make sure you adhere to Arkansas’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Arkansas?

Arkansas requires all employers with at least three employees to obtain Workers’ Compensation Insurance. Building and building repair companies with two or more employees, contractors that employ one or more employees and subcontract some of their work, and subcontractors with one or more employees are also required to obtain Workers’ Compensation Insurance. In Arkansas, an “employee” is generally defined as any individual who performs services for another under a contract of hire or apprenticeship and is not an independent contractor. 

The Arkansas Workers’ Compensation Law (WCL) defines all of the requirements for Workers’ Comp in Arkansas, and the Arkansas Workers’ Compensation Commission (AWCC) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Arkansas?

Almost all workers are covered under Workers’ Compensation in Arkansas. If you provide work or services for an employer, and you are not an independent contractor, you will likely be eligible for Workers’ Compensation Insurance. 

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Arkansas, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits 

Temporary Total Disability Benefits

Temporary Partial Disability Benefits

Permanent Partial Disability Benefits

Permanent Total Disability Benefits

Death Benefits

What are the penalties for breaking Arkansas Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the WCL can result in significant fines and even imprisonment. In order to avoid any costly penalties, it’s important to consult the WCL or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Report Injuries

Failure to Pay Benefits


Discrimination or Obstruction of Claims

Failure to Offer Suitable Employment

How much does Workers’ Compensation Insurance cost in Arkansas?

According to the National Academy of Social Insurance Workers’ Compensation Report (November 2020), the average employer cost for Workers’ Compensation in Arkansas was $0.70 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Arkansas?

Employees who suffer an occupational injury or illness must notify their employer as soon as possible. Employers must submit documentation to the AWCC within 10 days of learning of an employee’s injury or illness. Employers have 15 days from the date when they first learned of an employee’s work-related condition to either begin paying benefits or deny the claim. If necessary, the employer can request additional time to gather information; the request must be made within the 15 day period. 

Arkansas Workers’ Compensation Insurance Resources

For more information on Arkansas Workers’ Compensation laws and requirements, please visit the following resources:

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