Insurance in Arkansas

Arkansas's trade boards require licensees to maintain the insurance coverages set by each board's rules, and project owners routinely require proof of coverage before you step on site. Workers' compensation is required under Ark. Code Title 11, Chapter 9 for most employers with 3 or more employees. Minimum coverages a new trades shop should expect to carry: - General liability. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Covers bodily injury and property damage arising from your work. The AR Contractors Licensing Board requires proof on the commercial contractor application. - Workers' compensation. Required once the business has 3 or more employees (Ark. Code 11-9-102). The Arkansas Workers' Compensation Commission administers the system. - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects on a job with property damage exposure. Shop the market. Trade association programs (ABC Arkansas, AGC, PHCC of Arkansas, MCA, IEC chapters) often have group insurance programs that beat street-rate premiums for specialty trades. Independent agents who write construction can quote multiple carriers and compare class codes. Never let coverage lapse during an active job. A one-day gap on a multi-month project is enough to void a claim if something happens during the gap. Trade boards and the AR Contractors Licensing Board can suspend a license if required coverage lapses.