Protect Your Arkansas Construction Business with Workers' Compensation Insurance
Part of our guide to general contractors insurance in Arkansas.
You face a potential $100,000 exposure if an employee is injured on the job in Arkansas. Workers' Compensation Insurance caps this downside risk, paying for medical bills and lost wages when employees are injured on the job. In Arkansas, you need this coverage once you have 3 or more employees. Nearly every commercial client requires general contractors to carry at least $1 million in general liability and workers' compensation insurance as a condition of signing any construction contract. The policy covers medical bills and lost wages, but does not cover damage to your business property or vehicles. You typically also carry General Liability, Commercial Auto, and Professional Liability (E&O) insurance, but these do not cover employee injuries. Workers' Compensation Insurance is a must-have for general contractors in Arkansas, given the state's tornado corridor with frequent severe storm damage and high rate of uninsured drivers increasing commercial auto exposure.
Workers' Compensation cost for general contractors in Arkansas
Illustrative monthly workers comp estimate for a small general contractor operation in Arkansas. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Workers' Compensation Covers for General Contractors in Arkansas
Workers' Compensation Insurance pays for medical bills and lost wages when employees are injured on the job in Arkansas. This coverage handles specific claim types, such as slip-and-fall accidents, equipment malfunctions, and overexertion injuries. For example, if an employee falls off a ladder while working on a construction site in Fayetteville, Workers' Compensation Insurance would cover their medical bills and lost wages. However, it does not cover damage to your business property or vehicles, which would be covered by other insurance policies. Another example is if an employee is injured while operating heavy machinery in Fort Smith, Workers' Compensation Insurance would cover their medical expenses and lost wages.
Do General Contractors in Arkansas Need Workers' Compensation?
In Arkansas, workers' compensation is generally required once you have 3 or more employees. This means that if you have a small team of employees working for your construction business, you need to have Workers' Compensation Insurance to protect yourself and your employees. Without this coverage, you risk facing significant financial losses if an employee is injured on the job. For instance, if you have 5 employees working for your construction business in Springdale and one of them gets injured, you would be required to have Workers' Compensation Insurance to cover their medical bills and lost wages. The risk of going without Workers' Compensation Insurance is too high, as it can lead to financial ruin and damage to your business reputation.
A Real Workers' Compensation Claim a General Contractor Could Face
A general contractor in Little Rock faced a $50,000 claim when an employee was injured on the job while working on a construction site. The employee was operating a forklift and accidentally drove it into a pile of building materials, causing a severe leg injury. The employee required surgery and several months of physical therapy, resulting in significant medical bills and lost wages. Workers' Compensation Insurance covered the employee's medical expenses and lost wages, totaling $50,000. The general contractor was able to avoid paying out of pocket for the claim, thanks to having the right Workers' Compensation Insurance coverage in place. The employee was able to recover and return to work, and the general contractor was able to avoid a significant financial loss.
What Workers' Compensation Costs for General Contractors in Arkansas
The estimated Workers' Compensation premium for general contractors in Arkansas is $50-$190/month, varying based on revenue, payroll, and claims history. Factors that affect the cost of Workers' Compensation Insurance include the number of employees, the type of work being performed, and the location of the business. For example, a general contractor in a high-risk area such as a tornado corridor may pay more for Workers' Compensation Insurance than a general contractor in a lower-risk area. Additionally, a general contractor with a high claims history may pay more for Workers' Compensation Insurance than a general contractor with a low claims history. You can lower your premium by implementing safety protocols, providing training to your employees, and maintaining a clean claims history.
How to Get Workers' Compensation in Arkansas
To get Workers' Compensation Insurance in Arkansas, you should gather information about your business, including your revenue, payroll, and employee information. You should also research different insurance providers and compare their rates and coverage options. In Arkansas cities like Fayetteville or Fort Smith, you can find licensed insurance agents who specialize in Workers' Compensation Insurance for general contractors. By comparing rates and coverage options, you can find the best Workers' Compensation Insurance policy for your business and protect yourself and your employees from costly injuries. Workers' Compensation Insurance costs less than the potential $100,000 exposure you face without it, so see your rate today.
Frequently asked questions
Will my Workers' Compensation premium jump after one claim?＋
Yes. Your premium may increase after a claim, depending on the severity of the injury and the cost of the claim. You can also work with your insurance agent to implement safety protocols and reduce the risk of future claims.
Can I get a COI same-day for a client?＋
Yes. You can get a Certificate of Insurance (COI) same-day for a client, but you will need to provide the necessary information and documentation to your insurance agent. This may include proof of insurance, business information, and employee data. Your insurance agent can help you obtain a COI quickly and efficiently, so you can meet your client's requirements and start working on the project.
Does a sole proprietor need Workers' Compensation?＋
No. A sole proprietor is not required to have Workers' Compensation Insurance in Arkansas, but it's still essential to consider getting coverage to protect yourself from costly injuries. As a sole proprietor, you are personally responsible for any injuries or illnesses that occur on the job, so having Workers' Compensation Insurance can provide you with financial protection and peace of mind. You can also consider other insurance options, such as occupational accident insurance, to protect yourself and your business.
What's not covered by Workers' Compensation?＋
Workers' Compensation Insurance does not cover damage to your business property or vehicles, which would be covered by other insurance policies such as Commercial Property or Commercial Auto Insurance. It also does not cover injuries or illnesses that are not work-related, such as those that occur during an employee's commute or outside of work hours. You should consider other insurance options to cover these risks and protect your business.
Can I cancel my Workers' Compensation policy at any time?＋
Yes. You can cancel your Workers' Compensation policy at any time, but you will need to provide written notice to your insurance agent and pay any outstanding premiums. You should also consider other insurance options to ensure you have the necessary coverage to protect your business.
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Other coverages general contractors in Arkansas should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in Arkansas change over time and vary by business. Verify current rules with the Arkansas Department of Insurance and a licensed agent before purchasing a policy.