Popular Questions about Business Insurance in Arkansas

Business insurance is designed to safeguard your company against the various financial losses it may experience due to hazards such as damaging weather events, property crimes, and liability lawsuits.

This coverage can prove quite beneficial as is evidenced by the fact that businesses in Arkansas collected more than $1.4 billion in insurance claims in 2016 alone.

A local independent agent can help you build a customized business insurance plan that is designed to meet the specific coverage needs of your company.

Experts estimate that as many as 40% of all small businesses are likely to experience a property damage or general liability lawsuit setback in the next 10 years. One of the most common types of liability lawsuits faced by businesses are customer slip and fall injuries, which average about $20,000 per claim.

The following are some of the other common hazards American companies have experienced in recent years as well as the approximate average amount they collected when filing claims:

  • Theft & burglary losses: The average cost per claim is $8,000.
  • Water damage & freezing pipes: The average cost per claim is $17,000.
  • Wind & hail damage: The average cost per claim is $26,000.
  • Fire damage: The average cost per claim is $35,000.

In Arkansas, business insurance can cover losses associated with a variety of potential hazards so that your business doesn’t have to experience large financial losses.

Here are some of the many ways you can expect a well-built business insurance policy package to safeguard your company’s finances:

  • By covering damage to your business property
    • Example: An accidental fire destroys the backroom of your storefront and thousands of dollars worth of inventory and supplies are destroyed.
  • By covering third-party damage and medical bills
    • ExampleA customer is seriously injured when a wall display in your store dislodges and comes crashing to the floor.
  • By covering accidents involving company vehicles
    • Example: While out making deliveries, the driver of your company van misses a car in his blind-spot while changing lanes and causes a multi-vehicle accident.
  • By covering employee injuries and work-related illnesses
    • ExampleAn employee at your warehouse suffers a serious spinal injury due to an accident involving a forklift.
  • By covering losses related to long-term forced closures
    • ExampleA tornado touches down in the city where your business is housed. Your storefront is destroyed and many road in the area are impassable. It takes several weeks before a contracting firm can come in a begin repairs to your business so you are forced remain closed for three months.

A business insurance policy is not required by law. However, some types of commercial insurance that are often included in a comprehensive business insurance plan may be. For example:

  • Most financial institutions will require you to have commercial property and/or liability coverage before they will agree to finance a loan or line of credit.
  • Contracting firms like construction and roofing companies are nearly always required to show proof of contractors insurance before they are hired to do a job.
  • Most businesses with three or more employees in Arkansas are required to carry workers’ compensation insurance.
  • If your business owns a vehicle or fleet of vehicles, you need to carry commercial vehicle liability insurance that meets the state’s minimum coverage requirements as well as federal requirements if the vehicles are used for interstate commerce.

To learn more about coverage that you may need to have for your business, you can talk with a local independent insurance agent who will be familiar with your state’s requirements.

Business insurance rates are calculated according to a number of factors such as:

  • The size of your business
  • The value of your business assets
  • The number of employees you have
  • Your various liability exposures
  • The amount and types of coverage you want

Coverage needs can vary significantly from one industry to the next, so it is best to work with an experienced insurance agent who can help you build a suitable and comprehensive policy package for your company.

A comprehensive business insurance policy package will consist of several different types of policies. Because independent agents can work with multiple insurance companies, they are able to search for the best price for each type of coverage you need.

Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point-of-contact with your local independent insurance agent.

Yes! There are currently 220 independent agents in Arkansas. These agents are available and ready to help you with all of your business insurance coverage needs.

Did you know that independent insurance agents can work with several different insurance providers to find you build a comprehensive, yet competitively priced, business insurance policy portfolio? Work with an independent agent near you to ensure that your business is fully covered against all of its various exposures.

How does business insurance work?

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

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Fort Smith7,9938.053.24
Hot Springs4,61820.005.43
Little Rock20,93410.435.62
North Little Rock5,5766.494.35
Pine Bluff3,16415.765.52
  • 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. A local independent agent can help you review your coverage limits.
  • 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 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. If your business engages in interstate commerce, a local independent agent can ensure that your coverage meets all federal, as well as state, requirements.
  • 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, it also shields your business from potential lawsuits related to these injures 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 is designed to cover the cost of medical treatments, lost wages, and other expenses related to injuries and occupations 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. Find a policy and rate that works for your Springdale business by teaming up with a local independent agent.
  • Commercial Auto: Accidents can happen even to the most careful and experience 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 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 a expensive lawsuit if one of your drivers causes a serious accident. A local independent agent can help you find a reliable policy at a competitive price.
  • Workers’ compensation insurance 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, it can 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.