To find the best workers' compensation insurance in Arkansas, we evaluated several factors, including financial stability, affordability, customer satisfaction and the speed of online quotes. Based on these criteria, Thimble is the best provider in the state.
Workers' compensation insurance is crucial for small business owners since it is legally required in Arkansas. It also provides protection for both the employer and employees, ensuring that medical bills and lost wages are taken care of.
Best Workers’ Compensation Insurance in Arkansas
Best Workers’ Compensation Insurance in Arkansas
Thimble is the top-ranked company in Arkansas for workers’ compensation insurance, with a MoneyGeek score of 94 out of 100 and an average monthly cost of $83. The best company for you may vary depending on factors like annual payroll costs and the number of employees you have.
How was this MoneyGeek score calculated?
- Costs an average of $83 per month
- Financially stable
- Offers fast quotes
Thimble offers the best workers' compensation insurance in Arkansas. Premiums cost an average of $83 per month or $992 per year, making it the cheapest option for businesses in the state.
This insurer excels in offering fast quotes, with a remarkable turnaround time of one minute and 32 seconds. This is the fastest among the four providers we evaluated. Thimble received an A financial strength rating, which is lower than other insurers we evaluated but still indicates an ability to pay out claims. However, Thimble received the highest number of customer complaints based on data from the NAIC compared to its competitors.
- Rates are around $111 per month
- Few customer complaints overall
- A++ financial stability score from AM Best
biBERK, our runner-up for workers' compensation insurance in Arkansas, offers a balance of reliability and excellent service. It offers competitive rates at around $111 per month, making it the second cheapest option in the state. It also boasts few customer complaints overall, indicating a high level of customer satisfaction.
This insurer achieved an exceptional A++ financial stability score from AM Best, reflecting the highest possible rating in terms of financial strength. Additionally, it provides quick online quotes, with a turnaround time of one minute and 45 seconds, which is the second fastest among the evaluated providers.
- Premiums cost $114 per month
- Very few customer complaints
Next stands out for having the fewest customer complaints overall among the companies we evaluated in Arkansas, indicating a high level of customer satisfaction. However, it offers slightly higher premiums at a cost of $114 per month. Note that Next received an A- rating from AM Best, which is the lowest score among the insurers we assessed. Getting a quote from the company can also be a slow process, with speeds averaging two minutes and nine seconds.
- Average cost is $139 per month
- Few customer complaints
- A+ AM Best financial stability rating
Nationwide has an average cost of $139 per month for workers’ compensation insurance in Arkansas, which is the highest among the evaluated providers. Despite this, the insurer received few customer complaints based on NAIC data, showing that many customers are satisfied with its service. The company holds an A+ rating for financial stability from AM Best, assuring customers that Nationwide is well-equipped to handle claims. However, it falls short in terms of quote speed, with a turnaround time of almost four minutes. This is much slower than its competitors.
Cheapest Workers’ Compensation Insurance in Arkansas
The cheapest workers' compensation insurance provider in Arkansas is Thimble, with an average monthly premium of $83. For this category, we evaluated quotes for businesses with 20 employees and $1,250,000 in annual payroll costs. Note that the number of employees and payroll can impact the cost of your premium.
Among the providers evaluated, Thimble stands out as the cheapest workers' compensation insurance company in Arkansas. Its affordability is a major strength, with premiums averaging at $83 per month or $992 per year. The next cheapest provider costs $28 more per month. It also has an A financial strength rating, showing that it can typically meet the financial needs of policyholders. Although it is the cheapest option, one drawback is that Thimble received a high number of customer complaints, as reported by the NAIC.
We ranked insurance companies based on their average monthly costs to determine the cheapest provider in the state. Keep in mind that the cheapest option for your small business can vary depending on other factors. Below, you'll find a table showing the annual and monthly costs for insuring an Arkansas business with 20 employees, ranked by monthly cost.
Best Workers’ Compensation Insurance for Micro Businesses in Arkansas
biBERK is the overall winner for Arkansas micro businesses with five employees, offering a monthly premium of $54. This premium is based on an annual payroll amount of $312,500.
Micro businesses usually have between one to nine employees, and the number of employees can affect the cost of your premium. However, your annual payroll usually has a greater impact.
biBERK is considered the best option for micro businesses because, while it doesn’t offer the most affordable premiums, it is financially stable and has good customer service. Even though it’s not the cheapest option, biBERK offers an affordable annual cost of $54 per month. Additionally, biBERK provides the advantage of fast online quotes, making it convenient for businesses that need urgent coverage.
Best Workers’ Compensation Insurance for Midsize Businesses in Arkansas
biBERK is ranked best overall for Arkansas businesses with 100 employees, offering a monthly premium of $420. This premium is based on an annual payroll amount of $6,250,000. While employee count is a factor in the cost of workers' compensation insurance, payroll typically has a more significant impact on determining the premiums.
biBERK is an excellent choice for midsize businesses seeking a reliable and customer-focused workers' compensation insurance provider. With competitive rates of approximately $420 per month, it is the second-most affordable option we analyzed. While Thimble is cheaper, it receives many more customer complaints on average. In contrast, biBERK's track record of fewer customer complaints highlights its commitment to customer satisfaction. The company's exceptional A++ financial stability rating from AM Best also demonstrates its strong financial foundation.
How Much Is Workers’ Compensation Insurance in Arkansas?
The average monthly cost of workers' compensation insurance in Arkansas for a business with 20 employees is $112 per month, which is much lower than the national average of $168 per month.
The policy limits we set are:
- $1 million total policy limit: The maximum amount the insurance policy will cover for all claims combined during the policy period.
- $1 million per accident limit: The maximum amount the insurance policy will cover for a single accident or incident.
- $1 million per employee limit: The maximum amount the insurance policy will cover for each injured employee.
Below, you'll find a table showing the average cost of workers' compensation insurance for businesses with five, 20 and 100 employees. Note that these figures are provided as a general reference and may vary based on factors specific to individual businesses and insurers.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Arkansas
Several factors play a role in determining workers' compensation costs in Arkansas. Understanding these factors is crucial for businesses to manage their insurance expenses effectively.
Insurance providers generally apply a standardized rate for every $100 of payroll, which is determined at the state level and varies across different industries. Businesses with higher payroll costs can expect to pay higher premiums compared to those with lower payroll expenses. In 2022, Arkansas had an average rate of $0.65 per $100 of payroll, which is considerably lower than the rates in many other states.
Number of employees
Insurance premiums for companies with a large workforce tend to be higher due to the increased risk of employee injuries, leading to a greater potential for claims.
Employee class code
The class code assigned to a business represents the nature of work performed by its employees and determines the rate applied for every $100 of payroll. Industries with a higher risk of workplace injuries, like construction, generally have higher rates compared to lower-risk industries, such as consulting.
Insurance providers take into account a business's past claims when calculating rates since companies with a significant history of claims are viewed as higher risk. In Arkansas, the U.S. Bureau of Labor Statistics reported 21,100 nonfatal workplace illnesses and injuries in 2021 for private-industry businesses. Nationally, there were over 2.6 million nonfatal workplace injuries and illnesses recorded in the same year across various private-industry sectors.
Do You Need Workers’ Compensation Insurance in Arkansas?
Businesses are mandated by law to have workers' comp insurance in Arkansas if they employ three or more workers. However, employers with fewer than three employees should verify their coverage requirements with the Arkansas Workers' Compensation Commission because some businesses might be exempt depending on their specific circumstances.
If employers have any questions regarding their workers' compensation insurance requirements, they can get clarification by contacting their insurance agent or reaching out to the Information Officer, Operations/Compliance Division or Legal Advisor Division of the Arkansas Workers' Compensation Commission.
There might be consequences for employers who do not comply with workers’ comp laws in Arkansas. These can include:
- Penalties from the state
- Losing the benefits and protections offered by Workers' Compensation insurance and state laws
What Does Workers’ Compensation Insurance Cover in Arkansas?
Workers' compensation insurance in Arkansas offers significant benefits for both employers and employees. In the event of a work-related injury or illness, employees can get coverage for necessary medical treatments, including hospitalization, surgeries and rehabilitation services. It also provides compensation for lost income if the employee is unable to work due to an injury or illness. Additionally, it can cover various expenses, such as vocational rehabilitation and death benefits if an employee passes away due to a work-related incident.
For employers, having workers' compensation insurance provides financial protection by ensuring that the business is not responsible for paying medical expenses, lost wages and other costs out of pocket in case of work-related incidents.
Workers’ Comp Resources for Employees in Arkansas
The Arkansas Workers' Compensation Commission is the department responsible for overseeing workers' compensation insurance in Arkansas.
To file a claim and receive workers' compensation benefits, employees should report the injury to their employer using Form N or as directed by the employer. The reporting procedures set by the employer must be reasonable and provide employees with reasonable notice of the requirements.
If emergency medical treatment is required outside the employer's normal business hours, the employee should report the injury to the employer on the next regular business day.
Frequently Asked Questions About Workers’ Compensation Insurance in Arkansas
If you have questions about workers' compensation insurance in Arkansas, we compiled some frequently asked questions to provide you with answers.
About Melissa Wylie
- Arkansas Workers' Compensation Commission. "Employer Basic Facts." Accessed May 29, 2023.
- Arkansas Workers' Compensation Commission. "Form P." Accessed May 29, 2023.
- Bureau of Labor Statistics. "Occupational Employment and Wages: Arkansas." Accessed May 29, 2023.
- Oregon Department of Consumer and Business Services. "Workers' Compensation Premium Index Rates." Accessed May 29, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 29, 2023.
- U.S. Department of Labor, Office of Workers' Compensation Programs. "Workers' Compensation." Accessed May 29, 2023.