Find the Best Business Insurance Options in Arkansas

There are over 264,000 small businesses in Arkansas, which represents over 99% of the businesses in the state. Small businesses employ over 497,000 people in Arkansas, making small businesses essential to the state’s economy. 

If you own a business in Arkansas, whatever the size, how can you protect your assets from property losses and lawsuits? Business insurance provides the financial backup you need. An independent insurance agent can help you compare business insurance quotes in Arkansas. 

Best Business Insurance Companies in Arkansas

There are numerous insurance companies that offer business insurance in Arkansas. The following are some of the best business insurance companies in Arkansas. They are highly rated for their mix of valuable coverage offerings and competitive pricing. 

  • EMC Insurance Companies: EMC is in the top 60 business insurance companies in the United States. The company specializes in designing well-rounded insurance programs to protect the financial assets of many types of businesses and organizations.  
  • Progressive: Progressive is based in Ohio, but offers homeowners insurance across all 50 states, including Arkansas. Arkansas residents can look to Progressive for most of their business insurance needs. 
  • Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today the company offers a flexible, multiline range of coverages designed to meet the needs of any business, regardless of size or industry. 
  • Nationwide: Nationwide provides business insurance and other popular types of insurance coverage in Arkansas. The company is headquartered in Columbus, OH, and is represented by independent insurance agents in 50 states, including Arkansas. 
  • Hanover Insurance Group: Together with local independent agents, Hanover Insurance Group offers standard and specialized insurance protection for small and mid-sized businesses. 

An independent insurance agent in your area can help you learn more about these and other AR business insurance companies. A local agent can help you get competitive quotes for the coverage that fits your Arkansas business insurance needs.

Arkansas Business Insurance Requirements

Business insurance is a package of insurance policies covering your property and liability risks. Most types of business insurance are not required in Arkansas. But if your business owns any vehicles, you are likely to have to buy commercial vehicle insurance that complies with the state’s financial responsibility laws.

In addition, most employers in Arkansas with three or more employees are required by law to have workers’ compensation insurance, with few exceptions. Workers' compensation insurance helps injured workers pay for the costs of medical care and lost wages if they are injured on the job.

Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance and workers’ compensation insurance in Arkansas.

What Business Insurance Covers in Arkansas

A typical business insurance package in Arkansas will include the following types of coverage, at a minimum:

  • Commercial general liability (CGL) insurance: Protects your business from lawsuits related to bodily injury and property damage claims. It pays for medical expenses, legal fees, and financial settlements or judgments. Your CGL policy even covers personal injury claims such as libel and slander.
  • Commercial property insurance: This covers damage to a building and its contents if damaged by a weather event, fire, theft, vandalism, and other covered perils. 
  • Business interruption coverage: Protects your earnings and pays certain expenses if your business cannot operate because of damage after a fire, hail, wind, equipment breakdown, or another covered event. If you are forced to close for a while to make repairs or rebuild your business, this coverage pays for rent, employee salaries, lost income, relocation fees, and more.
  • Commercial auto insurance: Protects your business-owned cars and trucks from property damage and liability claims. 
  • Workers’ compensation insurance: Pays for medical expenses and a portion of an employee's lost wages after a work-related injury. 

Your business insurance in Arkansas may include additional policies that cover your unique risks. 

Liability Coverage Options for Small Businesses in Arkansas

Lawsuits against businesses are common. Whether a customer trips and falls in a store or a food manufacturer is responsible for sickening hundreds with tainted products, negligence claims can quickly destroy a business. 

A commercial general liability (CGL) policy is a type of small business liability insurance that offers broad protection from lawsuits. It covers the injured party's medical expenses and any property damage you are responsible for. And it covers court costs, attorney fees, and even settlements or judgments that you must pay to injured parties. 

A CGL policy does not cover every kind of liability risk. Additional small business liability policies are available for times when your CGL policy isn’t sufficient.

Talk to your independent insurance agent about why you might need other liability coverage options like commercial umbrella insuranceemployment practices liability insurancecyber liability insuranceprofessional liability insurance, or any other customized small business liability protection. 

Property Coverage Options for Small Businesses in Arkansas

Property losses can originate in a variety of ways and cause tremendous harm to your business. Here are the basic business property coverage options in Arkansas.

Commercial property insurance 

  • Protects you when your commercial property is damaged by someone else or by some type of unforeseen event. 
  • You need business property insurance if you own your building or have tangible business assets (furniture, computers, fixtures, inventory, materials, tools, etc.).
  • Repairs or replaces damaged or destroyed commercial property after damage due to fire, vandalism, smoke, theft, severe weather, and other causes of loss. 

Business interruption insurance

  • Usually included as part of a commercial property policy. 
  • Protects your earnings if your business is unable to operate because of damage after a fire, hail, wind, equipment breakdown, or some other covered event. 
  • If you’re forced to close your doors for a period of time in order to make repairs, this coverage pays for rent, employee salaries, lost income, relocation fees, and more. 

A local independent insurance agent can help you get quotes for business property insurance in Arkansas.

Other Insurance Options for Small Business Owners in Arkansas

Your business insurance needs probably don’t end with basic property and liability coverage. Other insurance options for small business owners in Arkansas include:

  • Business owners policy (BOP): A package policy that includes commercial liability insurance, commercial property insurance, and business interruption insurance. 
  • Workers’ compensation insurance: Typically required for any business that has employees. It pays for lost income and medical expenses for employees that are injured on the job.
  • Commercial auto insurance: Covers your vehicles and drivers in the event of an accident or other types of vehicle damage. 
  • Cyber liability insurance: Provides coverage in the event of a data breach involving your business.
  • Employment practices liability insurance: Protects you if an employee sues you for discriminatory employment practices. 
  • Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
  • Professional liability insurance: Protects you if a client claims you have been negligent in providing professional services.
  • Commercial umbrella insurance: Provides excess liability coverage above and beyond the limits of your applicable underlying commercial liability policies. 

This is not an exhaustive list of your business insurance options in Arkansas. An independent insurance agent can make sure that all of your Arkansas business insurance needs are met. 

Average Cost of Business Insurance in Arkansas

The average cost of business insurance in Arkansas varies across businesses and industries. In general, business insurance costs depend on the size of your business, the nature of your business or industry, the number of employees you have, the amount and value of your commercial property, the location of your business, and a variety of other variables. 

Depending on the level of risk you face, you’ll pay more or less than average for your insurance coverage. Some companies might be more susceptible to property losses from natural disasters, severe weather, or crime because of their location. This could lead to higher-than-average business insurance costs. 

An independent business insurance agent can help you understand all of the risks you face and get quotes for affordable business insurance in Arkansas.

National Business Insurance Stats

Number of businesses in the US: 30,819,176

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Fort Smith7,9939.224.38
Hot Springs4,61820.265.61
Little Rock20,9348.875.39
North Little Rock5,5765.715.65
Pine Bluff3,16415.766.53

How Does Your Arkansas City Measure Up?

Commercial property: Fayetteville sees a significant amount of inclement weather. Damage caused by electrical storms, heavy winds, and hail can wreak havoc on business property. Fortunately, when you have sufficient commercial property insurance in place, your company will be able to replace lost items and repair damage so that it can continue to function without experiencing a large financial loss.

Commercial auto: Commercial auto insurance can protect your business from facing unmanageable liability expenses if one of your drivers causes an accident while operating a company-owned vehicle. Rates can be influenced by the types of vehicles you are covering. It will cost far more to insure a passenger van than to cover a car or a cargo van, since your liability risks are greater when you are transporting passengers.

Workers’ compensation insurance: This is designed to cover the cost of medical treatment, lost wages, and other expenses related to injuries and occupational illnesses your employees may suffer because of doing their jobs. Arkansas state law requires companies that have at least three employees to purchase this insurance. Worker’s compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.

Commercial property: An out-of-control fire at your place of business can have devastating repercussions. In addition to your business facing extensive property damage, it may also be forced to remain closed for weeks while repairs are made and inventory is replenished. As long as your business insurance plan includes a sufficient amount of commercial property coverage as well as business interruption insurance, your company should be able to withstand the losses these accidental fires can cause.

Commercial auto: Whether you are insuring a company car, a delivery van, or a fleet of construction vehicles, commercial vehicle insurance can protect your company against losses related to liability risks and property damage if one of your drivers is responsible for a collision. 

Workers’ compensation: In Arkansas, workers’ compensation insurance is required by law if your business has at least three employees. This insurance not only protects your workers from financial losses related to workplace injuries and occupational illnesses, but also shields your business from potential lawsuits related to these injuries and ailments.

Commercial property: The property crime rate in Jonesboro is higher than both the state and the national averages. More than 1,700 thefts are reported in this city every year. This makes it particularly important for you to ensure that your business assets are sufficiently covered. In addition to covering against crime, your policy can also cover loss and damage due to hazards like inclement weather and accidental fires.

Commercial auto: Many businesses in Jonesboro have company-owned vehicles. If yours is among them, you will need to insure these cars, vans, buses, or trucks with a commercial auto insurance policy. Doing so can prevent your business from facing an expensive lawsuit if one of your drivers causes a serious accident. 

Workers’ compensation insurance: This covers medical bills and lost wages for workers who are injured while doing their jobs. It is required for all Arkansas businesses that have at least three employees. This insurance not only protects your employees but can also prevent your company from facing expensive lawsuits related to workplace injuries. Rates for workers’ compensation coverage are assigned according to your company’s overall payroll amount and the types of jobs your workers do.

Commercial property: Tornadoes pose a significant risk to businesses in the Little Rock area. Tornado activity in this city is 153% greater than the national average. Because the damage caused by a twister can be all-encompassing, it is important that you have enough commercial property insurance to fully cover all of your business assets.

Commercial auto: If your business owns a vehicle or a fleet of vehicles, your company will need the added liability coverage that comes with a commercial auto insurance policy. Your rates will be based on several factors, including the number and types of vehicles you are covering, details about the employees who will be driving them, and the collision rate in your city and anywhere else these vehicles are likely to be driven.

Workers’ compensation insurance: This can pay for medical bills and lost wages if your workers suffer an occupational illness or are injured on the job.  Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their job classifications. If you employ at least three workers, you will be required to carry this insurance.

Commercial property: Your business has likely invested a lot in its various assets such as computers, furniture, machinery, and supplies. Business property insurance can help cover the cost to repair or replace this property if it is lost or damaged by a covered event like a severe storm or a fire. 

Commercial auto: Accidents can happen even to the most careful and experienced drivers. If your Springdale business owns a vehicle or fleet of vehicles, you will need to carry commercial auto insurance that includes, at a minimum, liability coverage that meets state-mandated minimums for the type of vehicle you are insuring. Rates for these policies can vary according to the number and types of vehicles you are covering, as well as the risk of collisions where your employees will be driving.

Workers’ compensation insurance: This covers medical expenses and paid time off for employees who are injured on the job. It can shield your company from liability lawsuits related to these injuries. If your business employs at least three workers, you are required by Arkansas state law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.

Popular Questions About Business Insurance in Arkansas

While you can't predict the exact costs of business insurance in Arkansas, it’s important to understand what variables play a role in your rates. Here are just a few of the factors that insurance companies use when calculating your business insurance costs in Arkansas:

  • Type of industry
  • Number of employees
  • Gross annual sales
  • Location of business
  • Number of company vehicles
  • Past claims reported
  • Number of years in operation

Most kinds of small business insurance are not required in Arkansas. But if you have even one employee, you must purchase workers’ compensation insurance

In addition, if your Arkansas business owns any vehicles, you’re required to comply with the state’s car insurance laws. 

Most businesses in Arkansas need a combination of property and liability insurance, in addition to workers’ compensation insurance and commercial vehicle insurance, as required by the state. 

Depending on your unique business and the risks you face, you’ll likely need some additional coverage, such as professional liability insurance, commercial umbrella insurance, or cyber liability insurance. 

Small business general liability insurance is one of the basic building blocks of business insurance in Arkansas. It protects your operation from bodily injury and property damage claims and lawsuits that occur as a result of doing business. General liability insurance is an essential insurance coverage for most small businesses in Arkansas. 

Group health insurance and other employee benefits don't cover your physical assets or protect against lawsuits. But they do play a role in ensuring that you have a healthy and happy workforce.

There are many different small business health insurance plans in Arkansas. An independent insurance agent in Arkansas can help you find an affordable small business health insurance plan that meets your needs. 

EMCProgressiveLiberty MutualNationwide, and Hanover Insurance Group are some of the best small business insurance companies in Arkansas. They are highly rated for offering broad coverage, top-notch customer service, and various affordable options for business owners.

Searching for the best and most affordable business insurance can be frustrating and confusing. That’s why it pays to have an experienced insurance professional in your corner.

Find an independent insurance agent in Arkansas now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.  

Do You Know What Your Business Insurance Covers in Arkansas?