Workers compensation in Arkansas is priced on three things: your payroll, the kind of work your people do, and your claims history. The basic math is simple. Your rate is a dollar figure per $100 of payroll for each category of work, and larger employers then get an adjustment up or down based on past claims. Because Arkansas is a private, competitive market, two carriers can quote the same business very differently.
Who this is for: Arkansas owners who want to understand what drives their price and roughly what to expect before they get a quote.
The short version
- Payroll is the base. Price is figured per $100 of payroll, so more wages means more premium.
- The kind of work sets the rate. A category called the class code assigns a rate to each type of job, and a roofer's rate is many times an office rate.
- Claims history adjusts it. A score based on your past claims, the experience modification rate, raises or lowers the price for larger employers.
- Shopping matters here. Arkansas has no state fund, so carriers compete and prices vary.
- Rates have trended down. The rating organization NCCI files new advisory numbers each July, and Arkansas loss costs have fallen for several years running.
How the price is built
Here is the same calculation carriers use, in plain terms.
| Ingredient | What it is | Why it matters |
|---|---|---|
| Payroll | Your total wages, per $100 | The base the rate is applied to |
| Kind of work (class code) | A rate for each type of job | Riskier work carries a much higher rate |
| Claims history (experience mod) | A score from your past claims | Good history lowers the price; bad history raises it |
| Carrier and market | Each insurer sets its own price | Shopping can move the number a lot |
What small Arkansas businesses commonly pay
These are illustrative annual ranges, not quotes. Your real number depends on payroll and the exact work.
| Business type | Illustrative workers comp range |
|---|---|
| Office or professional services | $500 to $2,200 per year |
| Restaurant or cafe | $2,200 to $9,000 per year |
| Retail store | $1,100 to $4,600 per year |
| Landscaper or small contractor | $3,000 to $13,000 per year |
| Roofing or higher-risk trade | Often much higher; priced job by job |
How rates are set in Arkansas
Arkansas does not set one rate everyone pays. The rating organization NCCI files advisory loss costs with the Arkansas Insurance Department, and each carrier applies its own multiplier on top to set a final rate. Those advisory numbers change every July, and as of mid-2026 they have been falling for several years, which is good news for buyers but also a reason to re-shop rather than assume last year's price. The clean way to pay less is to get the details right: make sure each worker is in the correct category for their actual job, because putting a clerk in a construction category overpays for years, and keep your claims history clean with basic safety and a plan to bring injured workers back on light duty. Read more in our national guide on the experience mod and how to lower it.
A Texarkana example
Illustrative, not a quote. A Texarkana manufacturer with $600,000 in payroll gets quotes that differ by thousands of dollars, because one carrier rated part of the crew in a higher category than the work justified. We correct the categories, put a clean safety record to work in the claims score, and place the policy on pay-as-you-go so billing tracks real wages. The result is a fair price and no surprise audit bill. See the trade detail on our workers comp for manufacturers page.
Real questions Arkansas owners ask
How much does workers comp cost in Arkansas?
It depends on your payroll, the kind of work, and your claims history. Office work might run a few hundred to a couple thousand dollars a year, while higher-risk trades cost much more. Arkansas is competitive, so shopping moves the price.
How is the price actually calculated?
It starts from your payroll, figured per $100, times a rate for each type of work. Larger employers then get an adjustment up or down based on their past claims. Each carrier applies its own pricing on top.
Why is my rate so much higher than an office down the street?
Because the price is tied to the kind of work. Riskier jobs like roofing or framing carry far higher rates per $100 of payroll than office work, which is why a contractor pays more than an accountant.
Does Arkansas set one standard rate everyone pays?
No. The rating organization NCCI files advisory loss costs, and each carrier applies its own multiplier to set a final rate. That is why quotes vary and comparing carriers is worth the effort.
Are Arkansas workers comp rates going up or down?
As of mid-2026, advisory loss costs have trended down for several years. NCCI files new numbers each July, so the exact change shifts year to year. It is worth re-shopping rather than assuming last year's price.
Can I lower my workers comp cost in Arkansas?
Yes. Make sure workers are in the correct pricing category, keep your claims history clean with safety and light-duty return-to-work, and shop the market. Small classification errors can cost you for years.
What is pay-as-you-go workers comp?
It is a policy that bills on your actual payroll as you report it, instead of one big upfront estimate. It smooths cash flow and reduces the chance of a large bill at the year-end audit, which suits seasonal 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 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 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)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- Arkansas manufacturer 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.