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 operates under NCCI jurisdiction and contracts with Travelers as the state fund carrier through the National Workers' Compensation Reinsurance Pool. NCCI's centralized data collection and analysis of all Arkansas claims, class codes, and payroll creates more accurate risk assessments and fairer pricing across industries. This partnership provides guaranteed assigned risk coverage through Travelers when you can't find voluntary market options, though at higher rates.

Insurance companies in Arkansas can apply policy credits (discounts) or debits (surcharges) up to 25% to adjust their filed rates. This flexibility lets 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 dramatically different premiums based on individual risk profiles.

Arkansas employers have benefited from overall rate declines for the past 10 years, with voluntary market rates decreasing by an average of 10.8% in 2022 alone. Since the 1993 Workers' Compensation Reform Act (Act 796), Arkansas has seen 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, letting insurers charge lower premiums while remaining profitable. Arkansas business owners pay substantially 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 standardized 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 no forms need to be filed with the state. Owner exclusions are simply listed on the Acord 130 workers' comp application. This administrative simplicity lets you immediately reduce premiums by excluding owners without state approval or additional paperwork. Small business owners with alternative coverage can easily opt out to minimize costs, though excluded owners accept financial risk for work-related injuries.

Before the 1993 reform, Arkansas had only 5 voluntary carriers. Currently, 262 insurance companies write voluntary workers' comp policies in the state. Approximately 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 were removed from the assigned risk plan and obtained voluntary market coverage, saving them 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 capture additional 5% savings as you develop clean claims history. This creates affordable initial access with cost reduction opportunities.

All Arkansas employers with current coverage must display a poster of instructions (Form P) in the workplace. Failure to post these directions can result in loss of some protections provided by workers' comp insurance. 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. Non-compliance also removes legal protections, potentially exposing 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, translating directly to lower premiums. Arkansas's fraud prevention, reasonable medical fee schedules, benefit caps, and business-friendly legal environment drive these savings, making coverage more affordable than neighboring states.