Arkansas contractor insurance requirements

Workers' comp in Arkansas

Most Arkansas employers with three or more employees must carry workers' comp, and employers with two or more employees doing building or building repair work must too. A contractor that hands part of its contract to another contractor needs coverage with even one employee, and so does the contractor doing that part of the work.

The agency in charge is the Arkansas Workers' Compensation Commission. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

Indemnity and additional insured clauses

Arkansas's anti-indemnity statute (Ark. Code Ann. §§ 4-56-104, 22-9-214) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

What to check on a contractor COI for a Arkansas project

1. Workers' comp. A contractor below Arkansas's threshold can legally go without it, but your project requirements can still require it. Decide what you'll accept, and get an exemption or a policy in writing. For an out-of-state contractor, confirm Arkansas is listed on the workers' comp policy.
2. General liability. Arkansas doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.