Arkansas workers' compensation insurance

In Arkansas, most businesses with three or more employees are required to carry workers’ compensation insurance. Some businesses with fewer than three employees are required to carry workers’ comp coverage if they work in an especially risky industry, such as construction.

Arkansas employers must pay the full amount of the workers’ compensation policy cost. It cannot be deducted from the worker’s pay.

In Arkansas, farm laborers and real estate agents are not required to be covered by workers’ compensation. Domestic workers or employees of religious, nonprofit, or charitable organizations are also exempt.

Additionally, businesses with two or fewer employees may not be required to carry coverage, but should consult with the laws of their local government for clarification.

Also exempt from from workers' compensation law are personnel covered exclusively by federal law, such as railroad and maritime workers.

Sole proprietors and independent contractors in Arkansas are not required to carry workers’ compensation insurance coverage but may opt to voluntarily purchase a policy.

Even when it's not required, purchasing this policy is a smart decision. Your personal health insurance plan might exclude workplace injuries. Workers' comp would help pay your medical bills, and also provide part of the wages you'd otherwise lose while recovering from a work injury.

This policy also provides death benefits in the event of a work-related fatality.

Additionally, here's what your workers' comp policy won't cover:

• Injuries caused by intoxication, drugs, or company policy violations
• Injuries claimed after a firing or layoff
• Wages for a replacement worker
• Occupational Safety and Health Administration (OSHA) fines

Insurance providers use a specific formula for calculating workers' comp premiums:

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

A ghost policy is a cheap option in some states, though it is not permitted in Arkansas. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

When an employee suffers a physical injury on the job or develops an occupational illness, workers' compensation covers medical care and part of the wages lost during recovery.

In the state of Arkansas, the injured employee must go to the doctor chosen by their employer or their employer's insurance company to qualify for workers' compensation benefits.

Workers' comp can help cover:

• Emergency medical treatment
• Doctor's office visits
• Prescriptions
• Physical therapy
• Vocational training
• Total disability benefits
• Permanent partial disability benefits
• Death benefits

Policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer if they accept workers' comp benefits.

According to state law, employers who fail to carry the required coverage will be required to pay fines as a penalty to the state. In addition, they will lose protections provided by the Arkansas Workers’ Compensation Commission (AWCC).

Death benefits are available to family members who are financially dependent on an employee who dies after a work-related injury or illness. If there are no surviving dependents, benefits could be awarded to partial dependents.

A dependent could be the deceased worker’s:

• Spouse
• Children
• Parents
• Siblings
• Grandparents
• Grandchildren

Workers’ compensation pays benefits in the amount of 67% of the deceased worker’s average weekly wage based on a maximum that changes each year. The surviving dependents receive that amount divided among them.

A workers’ compensation settlement is an agreement between the parties that will resolve your workers’ compensation claim. This benefits both the employee and the employer.

With a workers’ comp settlement, the injured worker can receive a lump-sum payment that covers medical expenses, ongoing treatments or therapies, and past and future lost wages.

The employer then is free from the claim, and the employee can no longer bring additional claims for that injury.

A workers’ compensation claim can cover an injury from a single accident or injuries that take place over long periods of time, like repetitive motion disorders, job-related hearing loss, or occupational diseases such as mesothelioma.

The statute of limitations is the amount of time an employee has to file a workers' comp claim following an injury.

Under the Arkansas workers' compensation law, the statute of limitations is two years from the date of injury or from the date that the worker should have known that an injury or impairment developed as a result of job conditions.

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.