State insurance guide
Arkansas Business Insurance Guide 2026
Arkansas generally requires workers' compensation insurance when an employer has three or more employees, or two or more in building or building repair work. Auto liability minimums and paid leave rules follow, each with its official source.
Explore Arkansas requirements
Open the state requirements checklistArkansas generally requires workers' compensation insurance when an employer has three or more employees, or two or more in building or building repair work, and a contractor that subcontracts, or a subcontractor, needs it with one employee (Arkansas Workers' Compensation Commission, Form AR-A Application for Certificate of Non-Coverage (revised 1-1-2024)). Auto liability coverage must be at least $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (Arkansas Insurance Department, Automobile Insurance brochure). NCSL's table lists no mandatory state-run paid family leave or temporary disability program for Arkansas (NCSL).
The sources were checked on October 3, 2026. For a ruling on your own situation, ask the agency linked in each section.
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Workers' compensation
Who must carry it: 3 or more employees; 2 in building work; 1 for subcontracting contractors and subcontractors (Arkansas Workers' Compensation Commission, Form AR-A Application for Certificate of Non-Coverage (revised 1-1-2024)).
Exemptions and exclusions
The commission's Q&A brochure says the law does not apply to agricultural farm labor, domestic help, or employment by non-profit, religious, charitable or relief organizations (AWCC Q&A brochure). For the headcount, the commission's non-coverage form counts owners, sole proprietors, partners who work full time in the partnership, full-time and part-time employees, and volunteers (AWCC Form AR-A).
The agency to ask is the Arkansas Workers' Compensation Commission (Arkansas Department of Labor and Licensing). Our workers' compensation guide explains the coverage, and the workers' comp calculator checks the payroll arithmetic in a proposal.
Auto liability minimums
The minimum auto liability coverage in Arkansas:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
- Start date: not stated in the source; confirmed in force on October 3, 2026
- Source: Arkansas Insurance Department, Automobile Insurance brochure
You are required by law to purchase liability protection only.
Source: Arkansas Insurance Department, Automobile Insurance brochure
Commercial and for-hire vehicles can face different or higher federal or state requirements, as our commercial auto guide explains.
Paid leave and disability insurance
Arkansas has no mandatory state-run paid family and medical leave insurance program and no state temporary disability insurance program for private employers, based on NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws), and a cross-check on October 3, 2026 with the U.S. Department of Labor Women's Bureau.
The same NCSL page lists Arkansas among the states whose laws let employers buy optional paid leave coverage from private insurers; that option creates no employer mandate.
Compilations can lag new laws, as Virginia's 2026 program shows (Code of Virginia § 60.2-801). Before planning Arkansas payroll for a future year, confirm the position with the Arkansas Department of Labor and Licensing.
Other requirements to check
Licenses, leases and client contracts in Arkansas can set their own general liability limits or certificate wording. The certificate of insurance checklist helps you track them, and the requirements-by-state guide compares states. Arkansas's workers' compensation rule applies at two employees in building or building repair work, and at one for contractors that subcontract, so contractors should check it alongside their license conditions.
Where to verify
- Workers' compensation: Arkansas Workers' Compensation Commission (Arkansas Department of Labor and Licensing)
- Auto liability minimums: Arkansas Insurance Department, Automobile Insurance brochure
- Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau
Use the state requirements checklist to organize what to ask. You can also request coverage help for a PolicyBenchmark follow-up about your Arkansas business.
Frequently asked questions
How many employees trigger workers' compensation in Arkansas?
Generally three, counting owners, full-time partners, part-time employees and volunteers. Building and building repair work triggers the rule at two employees, and a contractor that subcontracts part of its contract, or a subcontractor, needs coverage with one. The agency to ask is the Arkansas Workers' Compensation Commission (Arkansas Department of Labor and Licensing).
Are Arkansas's auto minimums enough for business vehicles?
Arkansas's minimums are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (Arkansas Insurance Department, Automobile Insurance brochure). They are the lowest limits the law allows, not what your business needs, and commercial or for-hire use can bring different or higher requirements.
Does Arkansas require employers to pay into a paid leave program?
No mandatory state paid leave or temporary disability insurance program collects contributions from Arkansas employers, according to NCSL's table, last updated November 7, 2025. NCSL lists only optional coverage that employers can buy from private insurers. Confirm before planning a future payroll year.
About this article
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.