# Arkansas contractor insurance requirements

> What Arkansas law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/arkansas/

## The short version

- Workers' comp required at: 3 employees; building work 2
- License insurance minimum: No statewide minimum
- Anti-indemnity statute voids: Sole negligence

## 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.

Agency: [Arkansas Workers' Compensation Commission](https://labor.arkansas.gov/workers-comp/awcc-about-us/basic-facts/)

## 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.

## Common questions

### Do contractors need 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.

### Does Arkansas require contractors to carry general liability 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.

### Can a Arkansas construction contract make a contractor cover another party's negligence?

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.

## Sources

1. [Basic facts](https://labor.arkansas.gov/workers-comp/awcc-about-us/basic-facts/), Arkansas Workers' Compensation Commission
2. [Who is required to carry workers compensation insurance in Arkansas?](https://www.travelers.com/business-insurance/workers-compensation/state/arkansas), Travelers
3. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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