Best Workers' Comp Insurance in Arkansas

These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.

These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.

Arkansas uses NCCI jurisdiction and contracts with Travelers as the state fund carrier through the National Workers' Compensation Reinsurance Pool. NCCI collects and analyzes Arkansas claims data, class codes and payroll to create accurate risk assessments and fair pricing across industries. You can get guaranteed assigned risk coverage through Travelers when voluntary market options aren't available, though you'll pay higher rates.

Insurance companies in Arkansas can apply policy credits (discounts) or debits (surcharges) up to 25% to adjust their filed rates. Insurers reward your strong safety practices and management experience with discounts up to 25%, or add surcharges for poor safety records. Two businesses in the same industry can have vastly different premiums based on individual risk profiles.

Arkansas employers have seen overall rate declines for the past 10 years, with voluntary market rates decreasing by 10.8% in 2022 alone. Since the 1993 Workers' Compensation Reform Act (Act 796), Arkansas has had 14 rate decreases in the voluntary market and 13 decreases in the assigned risk plan. The reform's fraud prevention measures and streamlined claims process reduced claim costs, which let insurers charge lower premiums while staying profitable. Arkansas business owners pay much less than counterparts in states without similar reforms.

As of July 1, 2024, Arkansas requires specific minimum payroll amounts for owner inclusion: sole proprietors, partners and LLC members must use $51,100 annual payroll, while corporate officers must use $53,600 with a maximum cap. These figures create predictable premium calculations and benefit high-earning owners who pay based on set minimums rather than actual compensation. The maximum cap protects high-income corporate officers from excessive premiums based on unlimited earnings.

Arkansas has a streamlined exemption process where you don't file forms with the state. Owner exclusions are listed on the Acord 130 workers' comp application. You can immediately reduce premiums by excluding owners without state approval or additional paperwork. Small business owners with alternative coverage can opt out to minimize costs, though excluded owners accept financial risk for work-related injuries.

Before the 1993 reform, Arkansas had only five voluntary carriers. Currently, 262 insurance companies write voluntary workers' comp policies in the state. About 91% of Arkansas employers receive voluntary market coverage. More insurers competing for your business means lower premiums, better discounts and specialized coverage for your industry. Competition pressures carriers to offer attractive rates rather than forcing businesses into expensive assigned risk coverage.

In 2021, 185 companies moved from the assigned risk plan to voluntary market coverage, saving an average of 5.35% in premiums. Rate reductions in the assigned risk market benefit new businesses that often start there. Declining assigned risk rates lower startup costs for new businesses, while the pathway to voluntary coverage lets you save an additional 5% as you develop clean claims history. This gives you affordable initial coverage with chances to save more later.

All Arkansas employers with current coverage must display a poster of instructions (Form P) in the workplace. Failure to post these directions removes legal protections that prevent employee lawsuits for workplace injuries. Posted instructions help employees report injuries promptly, reducing claim costs through early treatment. Delayed reports worsen injuries and increase claim costs, raising your experience modification rates and future premiums. Noncompliance also removes legal protections and may expose you to lawsuits.

In 2020, Arkansas had the lowest loss costs in the region at 50 cents per $100 of payroll, compared to a regional average of 69 cents and a national average of 91 cents. Lower loss costs mean insurers pay almost 50% less in claims per payroll dollar, which means lower premiums. Arkansas' fraud prevention, reasonable medical fee schedules, benefit caps and business-friendly legal environment drive these savings, making coverage more affordable than neighboring states.