Does workers compensation insurance cover injuries sustained during non-work hours?

No, injuries occurring outside of work hours or during personal activities are not covered.

Are intentional injuries covered?

No, injuries inflicted deliberately by an employee are excluded from coverage.

Will this insurance help if an employee engages in illegal activities?

No, injuries sustained while committing illegal acts are not covered by workers compensation insurance.

Do self-inflicted injuries qualify for coverage?

Typically, no. Injuries that an employee inflicts upon themselves intentionally are excluded.

Is there coverage for professional negligence claims?

No, claims related to professional errors or omissions require separate professional liability insurance.

Are temporary injuries covered?

Yes, as long as they occur in the course of employment, but the coverage only applies within the policy limits for that injury.

Coverages

Arkansas Workers Compensation Insurance

ARKANSAS WORKERS’ COMPENSATION INSURANCE: REQUIREMENTS, RATES, AND BENEFITS

Table of Contents

Introduction

Arkansas mandates most employers to have workers’ compensation insurance to safeguard employees in the event of job-related injuries or illnesses. This required coverage guarantees workers get medical treatment, income replacement, and disability payments, while shielding employers from legal action. The Arkansas Workers’ Compensation Commission (AWCC) oversees compliance and manages claims. Employers who don’t provide coverage risk heavy fines, penalties, and possible criminal charges.

WHO NEEDS WORKERS’ COMPENSATION INSURANCE IN ARKANSAS?

According to Arkansas law (A.C.A. § 11-9-401), businesses with three or more workers must have workers’ compensation insurance. Yet, some industries with high risks, like construction and trucking, need to have workers’ compensation insurance no matter how many employees they have.

General Contractors – Must cover employees and uninsured subcontractors.
Independent Contractors – Not required unless misclassified as employees.
Subcontractors – Must carry their own workers’ comp or be covered by the general contractor.
Uninsured subcontractors – Employer responsibility.

Workers Protected by Arkansas Workers’ Compensation Law

The law covers a broad group of employees, such as:

Undocumented workers – Arkansas laws give full workers’ compensation benefits to undocumented workers. This ensures they get medical help and money to replace their wages if they get hurt at work.
Minors and family members – Workers under 18 or related to the boss still need insurance if they have a job.
Full-time, part-time, seasonal, and temporary workers – Companies need to cover employees, no matter how many hours they work or what type of job they have.

Main Rule for the Construction & Trucking Industries:

Every construction and trucking company must have workers’ compensation insurance even those with less than three workers.

This makes sure that contractors, laborers, and truck drivers get coverage, even in small companies.

Who Is Exempt from Workers’ Compensation in Arkansas?

Although most businesses must provide coverage, certain industries and worker classifications are exempt:

The majority of Arkansas companies have to offer workers’ compensation, but some workers don’t need it. People who own their own business or are partners aren’t forced to have coverage but can choose to get it if they want. People who run corporations or are part of LLCs don’t need it if they own 10% or more of the business.

People who work for themselves aren’t covered unless they’re labeled as employees. If they work under an employer’s guidance and supervision, they might be seen as employees making the employer responsible for insurance costs missed pay, and fines.

Agricultural employers don’t need to provide coverage if they employ less than three people.

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DETERMINING DISABILITY & WAGE REPLACEMENT

Workers who miss more than 7 days due to injury qualify for wage replacement benefits.

Disability Type

Benefit Amount

Eligibility

Temporary Total Disability (TTD)

66 2/3% of worker’s average weekly wage (max $835/week in 2024)

If the worker is completely unable to work during recovery.

Temporary Partial Disability (TPD)

66 2/3% of lost wages

If the worker can return to light-duty work but earns less.

Permanent Partial Disability (PPD)

Compensation based on an impairment rating

If the worker has permanent impairments but can still work.

Permanent Total Disability (PTD)

Lifetime benefits

If the worker can never return to any job.

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COMMON WORKPLACE INJURIES WORKPLACE INJURIES HOW TO PREVENT THEM

In Arkansas, workplace safety is a big concern. In 2023, 92 people died on the job, which is 22.7% more than the year before.

Common Workplace Injuries in Arkansas:

Transportation Incidents:

These cause the most deaths in jobs like truck driving and moving goods around.

Falls, Slips, and Trips:

These happen a lot in building and factory work often because safety rules aren’t followed well enough.

Contact with Objects and Equipment:

This includes getting hurt by machines, which happens a lot in factories.

Prevention Strategies:

Put a Safety and Wellness Plan into action:

Create full safety rules and push workers to report dangers.

Do Pre-Employment Physicals:

Check if workers can handle their jobs’ tough ones.

Train Often:

Teach staff how to stay safe and use tools right to avoid accidents.

Give Personal Protective Equipment (PPE):

Hand out needed gear like hard hats, gloves, and safety belts to lower injury risks.

Carry Out Workplace Checks:

Often look over the work area to spot and reduce possible dangers.

REGULATORY DIFFERENCES: ARKANSAS VS. OTHER STATES

Each state has unique laws affecting workers’ compensation costs and employer obligations:

Arkansas does NOT have a state fund — employers must purchase coverage from private insurers.

Missouri only requires workers’ comp for businesses with 5+ employees, except construction companies, which must provide coverage no matter their size.

Texas allows businesses to opt-out, while Arkansas, Louisiana, and Missouri require coverage.

The Arkansas Workers’ Compensation Commission (AWCC) and Its Function in Claims and Compliance

The Arkansas Workers’ Compensation Commission (AWCC) manages and enforces workers’ compensation laws in Arkansas. The state agency aims to safeguard employees and employers, making sure workers get the benefits they deserve and companies follow workers’ compensation rules.

HOW THE AWCC HANDLES CLAIMS AND RESOLVES DISPUTES

When a worker gets hurt, the AWCC ensures claims processing happens fairly and quickly. The process to file a claim involves these main steps:

Employer Reports the Injury

The employer must submit a First Report of Injury (FROI) within 10 days of receiving notification.

Insurer Reviews the Claim

The insurance company accepts or rejects the claim after medical assessments.

AWCC Oversees the Process

The AWCC makes sure that claims follow state law requirements.

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Frequently Asked Questions

The following are common questions about Workers’ Compensation Insurance.

Who needs workers’ compensation insurance in Arkansas?

All businesses with three or more employees must have workers’ compensation insurance. Construction and trucking businesses must carry coverage regardless of employee count.

What benefits does workers' compensation provide in Arkansas?

Arkansas workers’ comp covers medical expenses, wage replacement (66 2/3% of lost wages), permanent disability payments, and death benefits for job-related injuries or illnesses.

How do I file a workers’ compensation claim in Arkansas?

Employees must report workplace injuries immediately, and employers must file a First Report of Injury (FROI) within 10 days. Claims are processed through the employer’s insurance provider and the Arkansas Workers’ Compensation Commission (AWCC).

What happens if an Arkansas employer does not have workers’ compensation insurance?

Businesses without coverage face fines up to $10,000 per violation, stop-work orders, back pay liabilities, and potential felony charges. Employers must secure coverage to avoid legal consequences.

How much does workers’ compensation cost in Arkansas?

Premiums are based on industry risk, payroll size, and claim history, with rates ranging from $0.30 per $100 of payroll for office workers to $50 per $100 for high-risk jobs like roofing.