Here is the Arkansas twist that surprises solo owners: a sole proprietor counts toward the workers compensation trigger by default, and is covered unless they opt out. For an ordinary business the trigger is three or more people, but it drops to two for building work and to one if you subcontract part of a job or work as a subcontractor (Arkansas Code section 11-9-102). To sit clearly outside the mandate as a solo owner, you file a Certificate of Non-Coverage, Form AR-A.
Who this is for: Arkansas sole proprietors working solo or with a few helpers, deciding whether they need a policy for the business, for their crew, or for themselves.
The short version
- You count toward the number. Unlike some states, Arkansas counts the sole proprietor toward the trigger unless you file Form AR-A.
- Solo and not subcontracting usually means no policy. A single person doing ordinary, non-construction work is under the three-person line.
- Construction and subcontracting pull you in early. One employee triggers coverage if you subcontract part of a job or work as a subcontractor, and you count as that one.
- Form AR-A is the clean opt-out. A notarized Certificate of Non-Coverage, with a $50 fee, removes you from coverage and the count.
- Contracts often require proof anyway. A general contractor or client may demand a policy or a non-coverage certificate even when the state does not.
When a sole proprietor does and does not need it
| Your situation | Workers comp required? | Notes |
|---|---|---|
| Just you, ordinary non-construction work | No | Under the three-person trigger; you may still file Form AR-A |
| Just you, subcontracting on a construction job | Often yes, unless you opt out | One-employee trigger; file Form AR-A to sit outside |
| You plus one or two helpers, non-construction | Depends on the count | You plus two helpers can reach three |
| You plus staff on a building crew | Yes at two | Building work triggers at two people |
| Solo but a client demands proof | By contract | A small policy or a non-coverage certificate answers it |
Should you cover yourself?
If you keep yourself on rather than opting out, an on-the-job injury to you is paid by workers comp. If you do physical or higher-risk work, that pays your medical bills and part of your lost income while you recover, which a personal health plan may not do for a work injury. Filing Form AR-A saves premium but leaves your own injuries on you, so have a backup plan for time you cannot work. To see what including yourself would cost, look at how Arkansas prices coverage.
Proof of coverage for a contract
Solo Arkansas owners are regularly asked for proof of workers comp by a general contractor or client. You have two ways to answer: a small policy, sometimes called a ghost policy, that produces the proof of coverage, or a filed Certificate of Non-Coverage that shows you are outside the mandate. A contractor will take one or the other, because if you are an uninsured subcontractor with neither, your pay can land on the contractor's own policy at audit. See our national explainer on whether sole proprietors need workers comp, and how to get a policy in Arkansas.
A Springdale example
Illustrative, not a quote. A Springdale handyman runs as a sole proprietor with no employees. Doing ordinary repair work alone, he is under the three-person trigger, but a builder who subcontracts him a framing job will not let him on site without proof. He files a Certificate of Non-Coverage so he is clearly outside the mandate, and the builder accepts it. When he later hires two helpers for a bigger building job, he switches to a real policy, because two people on a construction crew now triggers coverage.
Real questions Arkansas owners ask
Do I need workers comp as a sole proprietor in Arkansas?
It depends on your work. Solo, ordinary non-construction work is under the three-person trigger. But you count toward the number by default, and subcontracting on a construction job triggers coverage at one person unless you file Form AR-A.
Am I covered if I injure myself on the job?
Yes, if you have not opted out, because Arkansas counts and covers the sole proprietor by default. If you file a Certificate of Non-Coverage, your own injuries are no longer covered by the policy.
How does a sole proprietor opt out in Arkansas?
By filing Form AR-A, a notarized Certificate of Non-Coverage, with a $50 fee to the Commission. Once accepted, you are removed from coverage and from the headcount for the trigger.
I work alone. When would I ever be required to carry it?
When you subcontract part of a job or work as a subcontractor, the trigger is one employee and you count as that one, so you are pulled in unless you file Form AR-A. Building work triggers at two people.
A client wants proof of coverage but I work alone. What do I do?
You can buy a small policy, sometimes called a ghost policy, that produces the proof of coverage, or file a Certificate of Non-Coverage. A general contractor will accept either as proof you are not an uninsured exposure.
Do my one or two helpers need to be covered?
Once helpers put you at the trigger for your work, yes. Two on a building crew or three in an ordinary business triggers coverage, and a hurt helper can otherwise sue you or become a bill you pay yourself.
Can someone force me to file a non-coverage certificate?
No. Arkansas makes it a felony for an employer or contractor to compel a worker or subcontractor to obtain a Certificate of Non-Coverage or to pay for coverage. The choice to opt out has to be yours.
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 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)
- Do sole proprietors need workers comp?
- 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.