Going without required workers compensation in Arkansas is serious. A business that fails to secure the coverage the law requires can be fined up to $1,000 for every day of the violation, taken to court and ordered to stop operating, and charged with a felony, and a hurt worker can walk away from the comp system and sue you in regular court (Arkansas Code sections 11-9-406, 11-9-106, and 11-9-105). The consequences reach the people who run the business, not just the company.
Who this is for: Arkansas owners who are near or over the coverage trigger and want to understand exactly what is at risk if they do not carry the coverage the state requires.
The short version
- Up to $1,000 a day. The Commission can fine an uninsured required employer up to $1,000 for each day of the violation, paid into a state trust fund.
- A court can stop your business. The Commission can ask a circuit court to enjoin you from further employment until you get covered or pay the penalties.
- It can be a felony. Failing to secure required coverage can be charged as a Class D felony, with a fine up to $10,000, and willfully avoiding coverage or premium is its own felony.
- The worker can sue you. When the employer is uninsured, the injured worker can choose to claim comp benefits or sue you in court instead.
- The cost dwarfs the premium. One serious injury plus fines can cost far more than years of coverage.
What is at stake
| Consequence | What it means |
|---|---|
| Daily civil fine | Up to $1,000 for each day you were uninsured, paid to a state trust fund |
| Order to stop work | A circuit court can bar further employment until coverage is secured or penalties are paid |
| Failure-to-secure charge | Can be a Class D felony, with a fine up to $10,000 |
| Fraud or avoidance charge | Willfully avoiding coverage or premium is a separate Class D felony |
| Worker's tort election | An injured worker can claim comp or sue you in court instead |
The protection you throw away
Workers comp is a trade. Employees give up the right to sue you over a workplace injury, and in return they get medical care and wage benefits without proving fault. When you carry coverage, that shield protects you. When you were required to carry it and did not, Arkansas lets the injured worker choose: file a comp claim or take you to court in a regular lawsuit. That choice, combined with fines that run by the day and possible felony exposure, is what makes going without so costly. Because penalty amounts and enforcement details can change, confirm the current specifics with the Arkansas Workers' Compensation Commission.
Why owners drift into this by accident
Most uninsured employers did not decide to break the law. They crossed the trigger during a busy season, treated employees as 1099 contractors who really were not, or took on a subcontracting job that dropped their trigger to one without realizing it. All three are common, and all three leave you uninsured while the law says you should be covered. There is also a felony rule that surprises people: you cannot force a worker or subcontractor to get a non-coverage certificate to make your count look smaller. If you are close to the line, it is worth a five-minute check. See whether the requirement reaches you in do I need workers comp in Arkansas, and if you have been told you are hard to insure, read how to get a policy.
A Pine Bluff example
Illustrative, not a quote. A Pine Bluff roofing company grew to four workers over a busy spring but never bought coverage, assuming the two newest, paid on a 1099, did not count. One of them falls and breaks a wrist. Because roofing is building work with more than two people, and those workers were really employees, the company was required to carry coverage and did not. It now faces the medical bills, a lawsuit the worker can choose to bring, daily fines, and possible felony exposure, instead of a claim a policy would have absorbed. See the trade detail on our workers comp for roofers page.
Real questions Arkansas owners ask
What happens if I do not carry workers comp in Arkansas?
If your business is required to carry it and does not, you can be fined up to $1,000 a day, ordered by a court to stop work, and charged with a felony, and a hurt worker can sue you instead of filing a claim. Confirm current specifics with the Commission.
How big is the fine for not having workers comp in Arkansas?
The Commission can assess up to $1,000 for each day of the violation, paid into a state trust fund. Because it runs by the day, the total climbs quickly the longer you go without required coverage.
Is not having workers comp a crime in Arkansas?
It can be. Failing to secure required coverage can be charged as a Class D felony, with a fine up to $10,000, and willfully avoiding coverage or the proper premium is a separate felony under Arkansas law.
Can the state stop my business over it?
Yes. The Commission can petition a circuit court for an order barring you from further employment until you secure coverage or pay the civil penalties. That interruption alone can cost more than the premium.
Can an injured employee sue me if I have no coverage?
Yes. When the employer is uninsured, Arkansas lets the injured worker choose to claim workers comp benefits or to sue you in court instead, which removes the usual protection covered employers rely on.
I did not realize a subcontracting job dropped my trigger. Does that help me?
Not much. The duty attaches once you hit the trigger for your work, and taking a subcontracting job can drop it to one employee. The fix is to get covered quickly and correct any misclassified workers.
Can I make a worker get a non-coverage certificate to lower my count?
No, and doing so is a felony in Arkansas. You cannot compel a worker or subcontractor to obtain a Certificate of Non-Coverage or to pay for coverage. The choice to opt out must be theirs alone.
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?
- 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)
- What workers comp does not cover
- Workers comp vs employers liability
- Arkansas roofer 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.