In Arkansas you buy workers compensation on the open market from any insurer licensed in the state, because Arkansas has no state fund. Most businesses go through an agent who shops several carriers. If no carrier will take you, a guaranteed fallback plan, the Arkansas Workers' Compensation Insurance Plan run through the rating organization NCCI, makes sure you can still get covered.
Who this is for: Arkansas owners buying workers comp for the first time, adding it for a new hire, or trying again after being turned down.
The short version
- You buy from private carriers. Arkansas is a competitive market, so an agent can shop your business to several insurers.
- There is a guaranteed fallback. If carriers decline you, the assigned risk plan provides coverage no one can be shut out of.
- You need a few basics ready. Payroll, the kind of work, and your headcount are enough to start a quote.
- Coverage can bind fast. Many policies can start within a day or two once details are confirmed.
- Options fit different needs. Pay-as-you-go, a small proof-only policy, or a filed non-coverage certificate each solve different problems.
Your routes to coverage
| Route | Best for | Notes |
|---|---|---|
| Private carrier through an agent | Most businesses | Shops several insurers for the best fit and price |
| Assigned risk plan | Hard-to-place or new ventures | Guaranteed coverage when carriers decline |
| Pay-as-you-go policy | Seasonal or variable payroll | Bills on actual wages; fewer audit surprises |
| Small proof-only policy | Solo owners needing a certificate | Meets a contract without insuring a crew |
| Certificate of Non-Coverage | Solo owners who are exempt | Form AR-A shows a general contractor you are outside the mandate |
What to have ready
A quote goes faster when you gather a few things first: your estimated annual payroll, a clear description of what your workers actually do, your number of employees, your business entity type, and any past claims. If a client or general contractor is requiring coverage, have their exact requirement handy so the proof of coverage matches what they asked for. With those in hand, most Arkansas businesses can get a quote quickly and a policy in place within a day or two.
If you have been turned down
Being declined by a carrier is not the end of the road in Arkansas. Carriers turn away businesses for reasons like a rough claims history, a high-risk trade, or being brand new, but the assigned risk plan, the Arkansas Workers' Compensation Insurance Plan, exists exactly so those businesses can still get covered. An agent submits you to the plan and you get a policy. The goal is then to clean up whatever caused the decline, so you can move back to the regular market later at a better price. Larger, financially strong employers can also apply to self-insure with the Commission's approval. If cost is the worry, start with our Arkansas cost guide.
A Cabot example
Illustrative, not a quote. A new Cabot tree-service company with a rough first-year claim cannot get a standard carrier to bite. Its agent places it in the Arkansas Workers' Compensation Insurance Plan so it can keep working and meet its clients' proof-of-coverage demands, then sets up a safety plan. Two years later, with a clean record, the company moves to a regular carrier at a lower price. See the trade detail on our workers comp for landscapers page.
Real questions Arkansas owners ask
How do I get workers comp in Arkansas?
You buy it on the open market, usually through an agent who shops several private carriers. Arkansas has no state fund, so insurers compete for your business. If none will take you, the assigned risk plan is a guaranteed fallback.
What do I need to get a quote?
Your estimated annual payroll, a description of what your workers do, your number of employees, your entity type, and any past claims. If a contract requires coverage, have that requirement handy so the proof matches.
How fast can coverage start?
Often within a day or two once your details are confirmed. If you have a new hire starting or a contract deadline, tell your agent so the policy can be bound before the person starts or the job begins.
What if every carrier turns me down?
Arkansas has a guaranteed fallback called the Arkansas Workers' Compensation Insurance Plan, run through the rating organization NCCI. Your agent submits you and you get covered, even with a rough claims history or a high-risk trade.
I work alone but a client wants proof. What can I buy?
A small policy, sometimes called a ghost policy, can produce the proof of coverage a client wants. If you are a solo owner who is exempt, a filed Certificate of Non-Coverage, Form AR-A, can also satisfy a general contractor.
Can I self-insure my workers comp in Arkansas?
Larger, financially strong employers can apply to self-insure with the approval of the Arkansas Workers' Compensation Commission. Most small businesses buy a policy instead, because the approval and reserves make self-insurance impractical at small size.
Can I lower my price after starting in the assigned risk plan?
Often yes. Once you build a clean claims record and address whatever caused the decline, an agent can usually move you back to the regular market at a better rate. The plan is meant to be a bridge, not a life sentence.
Why Arkansas owners choose Morrow
- We shop the right market for you. In Arkansas you buy workers comp on the open market from any private insurer licensed in the state, because Arkansas has no state fund, and if no carrier will take you the assigned risk plan run by the rating organization NCCI, the Arkansas Workers' Compensation Insurance Plan, is the guaranteed backstop, so we can shop your rate freely and still cover hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Arkansas guides
Every Arkansas business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Arkansas (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Hiring your first employee: what changes
- Arkansas landscaper workers comp
This guide is general information, not legal advice. Arkansas rules and penalty amounts can change, so verify current requirements with Arkansas Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.