An Arkansas partnership must carry workers compensation once it regularly employs three or more people, with the trigger dropping to two for building work and one in a subcontracting chain (Arkansas Code section 11-9-102). Arkansas counts a partner who devotes full time to the partnership toward that number, and covers them, unless the partner files a Certificate of Non-Coverage, Form AR-A. So the partners are part of the count, not automatically outside it.
Who this is for: Arkansas general and limited partnerships weighing whether the business needs a policy for its staff and how the partners are treated.
The short version
- Three employees is the general line. Two triggers it for building work, one in a subcontracting chain.
- Full-time partners count. A partner who works full time in the business counts toward the number and is covered by default.
- Partners opt out with Form AR-A. A notarized Certificate of Non-Coverage, with a $50 fee, removes a partner from coverage and the count.
- Your hired staff count. Full-time and part-time employees, and volunteers, all count toward the trigger.
- Contracts can require it anyway. A client or general contractor can demand proof even when the state does not.
How a partnership is counted
| Person | Counts toward the trigger? | Covered by default? |
|---|---|---|
| Partner who works full time in the business | Yes | Yes, unless they file Form AR-A |
| Regular full-time employee | Yes | Yes |
| Regular part-time employee | Yes | Yes |
| Volunteer | Yes | Yes while unpaid and working |
| 1099 worker you control day to day | Usually yes | Treated as an employee if misclassified |
Should the partners opt out?
Because a full-time partner is counted and covered by default, many partners simply stay on. If the partners do physical work, that coverage pays medical bills and part of lost income after an injury, rather than the partner absorbing it. Filing Form AR-A to save premium leaves each partner's own injuries on them, so make sure each has a backup for time they cannot work. Remember the felony rule too: no one can compel a partner or a worker to file a non-coverage certificate. Our Arkansas cost guide shows how including a partner changes the price.
When employees push you over the line
Because full-time partners count, a partnership reaches the trigger faster than owners expect. Two full-time partners with one employee is already three people for an ordinary business, which means coverage is required unless the partners file Form AR-A. Add building work and the trigger is two. Because part-time staff and volunteers also count, a partnership that staffs up seasonally can cross into required coverage without noticing. If you are close to the line, plan for coverage before the season, not after an injury. See how part-time staff affect the count.
A Rogers example
Illustrative, not a quote. A Rogers accounting partnership has two full-time partners and two staff. That is four people counting toward the trigger, so the partnership is required to carry coverage for its staff, and the partners decide to stay on the policy rather than file Form AR-A because the premium on low-risk office work is modest. When they add a third staffer the following year, the same policy already covers the team. See the trade detail on our workers comp for accountants and bookkeepers page.
Real questions Arkansas owners ask
Does an Arkansas partnership need workers comp?
Once it 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. Full-time partners count toward the number.
Do partners count toward the trigger?
A partner who devotes full time to the partnership counts and is covered by default in Arkansas, unlike some states. That partner can file a Certificate of Non-Coverage, Form AR-A, to opt out and drop off the count.
How does a partner 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 partner is left off the policy and removed from the headcount.
How many people trigger the requirement?
Three for an ordinary partnership, two for building or building-repair work, and one in a subcontracting chain. Full-time partners, employees, part-timers, and volunteers all count toward that number.
Should working partners stay on the policy?
It depends on the work. Partners who do physical labor usually stay on, because comp pays medical bills and part of lost income after an injury. Partners in a low-risk office setting more often file Form AR-A to opt out.
Do part-time employees count for a partnership?
Yes. Part-time and seasonal employees count toward the trigger in Arkansas, and volunteers count too, so a partnership that adds seasonal help can cross into required coverage without realizing it.
Our lease requires proof of coverage. Can we get it below the trigger?
Yes. You can buy a policy voluntarily even when the state does not require it, which is common when a lease, client, or general contractor demands proof of coverage before you can work.
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 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Arkansas accountant 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.