Workers Compensation in Arkansas was created to ensure that employees injured on the job are taken care of, and are not penalized for seeking necessary medical care and treatment. So as a small business owner, where do you start? Here is some important information to note about Workers Compensation Laws in Arkansas.
Who is Required to Carry Workers Compensation Insurance?
In Arkansas, most employers with 3 or more employees are required to carry workers compensation insurance coverage for their employees. There are exceptions to this, meaning there are instances where employers having less than 3 employees are required to have coverage, and other instances where employers may be exempt from this requirement.
In some higher risk industries, such as construction, the state may require coverage with less than 3 employees. If you aren't sure if this applies to your business, you can reach out to us or take a look at the state's Workers Compensation Commission Division website.
As we mentioned, there are also some industries that are exempt from the Workers Compensation insurance requirement. A few examples are employers of domestic workers or employees of religious, nonprofit, or charitable organization, real estate agents, and employers of farm laborers. Additionally, sole proprietors, independent contractors, and other self-employed individuals may not be required to carry coverage, but may opt to voluntarily. Even when it isn't required, purchasing a workers' compensation insurance policy can protect your growing business against high medical bills in the event of an accident.
How Does Workers Compensation Work in Arkansas?
Now that we have determined you need coverage, what coverages do you need? Workers Compensation policies can cover medical costs and a portion of the lost wages an employee loses due to a a work-related injury or a developed occupational illness. Policies can help pay for medical expenses such as:
- emergency care
- visits to a physician
- prescriptions
- physical therapy
- permanent partial disability benefits
- total disability benefits
- death benefits
For example, someone that works in the accounting department at your office is diagnosed with carpal tunnel syndrome due to keyboard overuse, your worker's compensation policy would pay for their medical bills, including long-term medication, physical therapy, etc.
Another example, your office secretary slips and falls in the break room, hitting her head. She is taken to the hospital to be treated and patched up. Your policy can pay for the ambulance ride and emergency room visit. In many instances, these accidents seem like small things, but can lead to long-term or larger expenses. A workers compensation policy is a good idea for any small business.
It's important to note that in Arkansas, if you are not carrying the required workers compensation insurance coverage, the state can assess fines. If you are unsure if you need a workers comp policy or if you have the correct coverages for you, check out the Arkansas Workers Compensation Commission Division's website or contact us for more information today!