Arkansas Contractor Insurance Requirements
Arkansas requires workers' compensation for employers with three or more employees, one of the higher employee thresholds in the country. The Arkansas Contractors Licensing Board requires licensed contractors to carry general liability insurance, and the state's construction industry is growing rapidly in the Northwest Arkansas corridor. Property managers should note that contractors with fewer than three employees are not required to carry WC, which is a common compliance gap.
Arkansas COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in Arkansas. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $500,000 |
| General Liability (aggregate) | $1,000,000 |
| Workers' Compensation | Mandatory 3+ employees |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Less Common |
Coverage Notes
GL: Arkansas Contractors Licensing Board requires $500K per occurrence minimum. Commercial projects commonly require $1M/$2M.
WC: Arkansas Code § 11-9-401 requires WC for employers with 3+ employees. Agricultural employers, railroad workers, and domestic servants are exempt.
Umbrella: Not mandated by state law but required on most government and large commercial contracts.
Additional Insured: Standard requirement in commercial property management and public construction contracts.
Waiver of Subrogation: Less universally required than in larger states; included in most commercial lease templates but not always enforced.
Arkansas-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in Arkansas. Property managers should be familiar with these statutes when reviewing vendor COIs.
Arkansas Code § 11-9-401 (Workers' Compensation Law)
Requires coverage for employers with 3+ employees. Contractors with 1–2 employees may be audited if work involves construction, so maintaining coverage is advisable regardless.
Arkansas Contractors Licensing Board (Ark. Code Ann. § 17-25-101)
Contractors performing commercial work over $20,000 or residential work must be licensed and carry GL insurance.
Arkansas COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in Arkansas.
Do contractors in Arkansas need workers' compensation?
Arkansas requires workers' compensation for employers with three or more employees (Arkansas Code § 11-9-401). Contractors with 1–2 employees are not required to carry WC, but property managers should still request evidence of coverage or a signed WC waiver.
What are the minimum insurance requirements for contractors in Arkansas?
Arkansas-licensed contractors must carry at least $500,000 per occurrence in general liability. Workers' compensation is required once you have 3 or more employees. Commercial property managers typically require $1M/$2M GL.
What work in Arkansas requires a contractor license?
Commercial construction projects over $20,000 require an Arkansas Contractors Licensing Board license. Residential contractors must also be licensed. Proof of general liability insurance is required for all license categories.
What happens if an Arkansas contractor has fewer than 3 employees and no WC?
Contractors with 1–2 employees are exempt from mandatory WC under state law, but the property owner may be held liable for injuries if the contractor is uninsured. Always request a COI or signed WC exclusion certificate when hiring small contractors.
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