If your Arkansas LLC regularly employs three or more people, you must carry workers compensation (Arkansas Code section 11-9-102). That trigger drops to two for building or building-repair work and to one if the LLC subcontracts part of a job or works as a subcontractor. Your own coverage as a member is a separate question from whether the business must insure its staff, and owners get those two questions mixed up all the time.
Who this is for: Arkansas LLC owners, single-member or multi-member, deciding whether the business needs a policy and whether they belong on it.
The short version
- Three employees is the general line. An LLC with three or more employees must carry workers comp; two triggers it for building work, and one in a subcontracting chain.
- Members count by default. Unlike some states, Arkansas counts a working LLC member toward the number, and covers them, unless they opt out.
- You opt out with Form AR-A. A member can file a Certificate of Non-Coverage, notarized, with a $50 fee, to leave their own injuries off and drop out of the count.
- Your hired staff always count. W-2 employees count whether they are full-time or part-time.
- Contracts can require it even at one employee. A general contractor, landlord, or client can demand proof of coverage regardless of the state trigger.
Two questions LLC owners mix up
Keep these separate and most of the confusion disappears.
| Question | Answer for an Arkansas LLC |
|---|---|
| Does my LLC have to insure its employees? | Yes, once it hits the trigger for its work: three general, two building, one subcontracting |
| Do my hired workers count? | Yes, full-time and part-time employees both count |
| Do I, as a member, count and get covered? | Yes by default; you can file Form AR-A to opt out and drop off the count |
| Do I need a policy with only myself and no staff? | Often not, unless you subcontract or a contract requires it; opting out with Form AR-A keeps you clearly outside |
Should you put yourself on the policy?
Because a working member is covered by default, many members simply stay on. If you do physical work, that coverage pays your medical bills and part of your lost income after an on-the-job injury, which your personal health plan may not fully cover for a work injury. If you file Form AR-A to save premium, make sure you have another plan for a bad week, and remember the felony rule: no one can force you or a worker to get a non-coverage certificate. A quick way to know what a policy would cost is to see how Arkansas prices workers comp.
Proof of coverage when you have no employees
Many single-member LLCs get asked for proof of workers comp by a general contractor or client even though they have no staff. In Arkansas you have two clean answers: a small policy, sometimes called a ghost policy, that produces the proof of coverage a contract wants, or a filed Certificate of Non-Coverage that shows you are outside the mandate. A general contractor will accept one or the other, because an uninsured sub without either becomes the contractor's own comp exposure. See how to get a policy in Arkansas for the options.
A Fayetteville example
Illustrative, not a quote. A Fayetteville LLC does commercial painting with two owner-members and three painters on payroll. Because this is building work with more than two people, Arkansas requires a policy and the three painters must be covered. The two members are on ladders every day, so they stay on the policy rather than filing Form AR-A. When a general contractor asks for proof before a job, the LLC produces it the same day. We check that the painters are rated on the right kind of work so the price is not inflated. See the trade detail on our workers comp for contractors page.
Real questions Arkansas owners ask
Does my Arkansas LLC need workers comp?
If the LLC regularly employs three or more people, yes, under Arkansas Code section 11-9-102. The trigger is two for building work and one in a subcontracting chain. A contract with a general contractor or client can also make you carry it.
Do LLC members count toward the number?
Yes, by default in Arkansas. A working member counts toward the trigger and is covered unless they file a Certificate of Non-Coverage, Form AR-A. Your hired W-2 staff always count.
How does an LLC member opt out of coverage?
By filing Form AR-A, a notarized Certificate of Non-Coverage, with a $50 fee to the Commission. Once accepted, the member is left off the policy and removed from the headcount.
Does a single-member LLC with no employees need workers comp?
Often not under state law if you have no staff and do not subcontract. Many single-member LLCs still buy a small policy or file a non-coverage certificate because a general contractor or client requires proof before work.
My LLC only has part-time help. Does that change anything?
Not the count. Part-time employees count toward the trigger in Arkansas, and even volunteers count. Three regular part-timers can make coverage mandatory for an ordinary business.
Can a small proof-of-coverage policy (a ghost policy) satisfy a contract?
Often yes. A small policy that mainly produces proof of coverage, sometimes called a ghost policy, is a common way to meet a contract. In Arkansas a filed Certificate of Non-Coverage can also satisfy a general contractor.
Will my personal health insurance cover a work injury?
Often not fully. Many health plans limit or exclude injuries that happen at work, which is one reason a working member usually stays on the comp policy rather than opting out.
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'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?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What is a ghost workers comp policy?
- Arkansas contractor 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.