Arkansas Business Insurance FAQ - Quick Answers
There are a number of things that impact your small business insurance premiums, and you can't know your costs without a customized quote. In Arkansas, carriers review the following risk factors when rating your coverage:
- Type of industry
- Number of employees
- Gross annual sales
- Location of business
- Number of company vehicles
- Safety practices in place
- Past claims reported
- Number of years in operation
Several policies could be necessary for your small business. In Arkansas, you are required to carry workers' compensation insurance when you have three or more employees. You'll also need to have the minimum limits of liability for any vehicles that are used for the business. Other significant policies that you may need to be fully protected aren't mandated by law.
Your Arkansas small business will have options when it comes to coverage, however, the most commonly obtained policies are as follows:
- General liability insurance: Pays for a bodily injury or property damage liability lawsuit brought against your operation.
- Workers' compensation insurance: Pays for the injuries of an employee hurt on the job. Mandatory when you have three or more employees.
- Property insurance: Covers damage to your business property due to a covered claim.
- Business income insurance: Pays for regular business expenses when a covered loss closes your operation for a period of time.
- Business auto insurance: Pays for a loss resulting from an auto accident with a company-owned vehicle. Must abide by state car insurance laws.
- Professional liability insurance: Pays for a lawsuit against your business due to negligent or harmful advice.
- Commercial umbrella insurance: Provides an additional limit of liability coverage over your underlying business policies.
In Arkansas, there are multiple small business liability policies to choose from when purchasing coverage. Check out the most common below:
- General liability insurance: Pays for a bodily injury or property damage liability lawsuit brought against your operation.
- Professional liability insurance: Pays for a lawsuit against your business due to negligent or harmful advice.
- Commercial umbrella insurance: Provides an additional limit of liability coverage over your underlying business policies.
According to the Affordable Care Act, you're not required to offer health insurance unless you have 50 employees or more. However, you may want to add it to your staff's benefits for additional value. A local trusted adviser can run quotes for free.
There are several carriers for your small business, and finding the best can be challenging if you're unsure where to start. In Arkansas, Nationwide, Travelers, Hanover, and Progressive are highly rated. These companies are best known for their superior coverage options and claims handling.
Do You Know What Your Business Insurance Covers in Arkansas?
Find the Best Insurance in Your City
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
| City | No. businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Benton | 2,910 | 5.44 | 3.40 |
| Bentonville | 3,922 | 1.50 | 0.58 |
| Conway | 4,995 | 2.63 | 1.46 |
| Fayetteville | 7,467 | 4.50 | 4.77 |
| Fort Smith | 7,993 | 9.22 | 4.38 |
| Hot Springs | 4,618 | 20.26 | 5.61 |
| Jonesboro | 6,908 | 13.95 | 1.69 |
| Little Rock | 20,934 | 8.87 | 5.39 |
| North Little Rock | 5,576 | 5.71 | 5.65 |
| Pine Bluff | 3,164 | 15.76 | 6.53 |
| Rogers | 5,134 | 2.40 | 1.49 |
| Russellville | 2,545 | 3.70 | 2.00 |
| Sherwood | 2,492 | 6.81 | 2.83 |
| Springdale | 6,024 | 4.41 | 3.30 |
| Texarkana | 2,413 | 7.17 | 2.27 |
- Little Rock, AR
- Business Insurance Common Coverage Options
- Commercial property: Tornadoes pose a significant risk to businesses in the Little Rock area. In fact, tornado activity in this city is 153 percent 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 individual job classifications. If you employ at least three workers, you will be required to carry this insurance.
- Fort Smith, AR
- Business Insurance Common Coverage Options
- 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.
- Fayetteville, AR
- Business Insurance Common Coverage Options
- 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. For example, it will cost far more to insure a passenger van than it will 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 treatments, 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.
- Springdale, AR
- Business Insurance Common Coverage Options
- Commercial property: Your business has likely invested a lot into 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.
- Jonesboro, AR
- Business Insurance Common Coverage Options
- Commercial property: The property crime rate in Jonesboro is higher than both the state and the national averages. In fact, 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.