Do You Need Small Business Insurance in Arkansas?
With a lower cost of living and a laidback way of life, Arkansas appeals to those seeking a slower pace. Arkansas has earned the nickname The Natural State well, with Mount Nebo, the river valley, the Timberlands, and more tempting ecotourists. Arkansas has the 12th lowest cost for starting a business in the US. Important small business industries in Arkansas include construction, retail, professional and technical services, healthcare, transportation, and finance.
- There are over 258,500 small businesses in Arkansas
- 99.3% of businesses in Arkansas are considered small businesses
- Small businesses employ over 491,300 people in Arkansas
With a rich art scene and world-class healthcare, small businesses are of great importance to the Arkansas economy and outlook. Small business insurance is essential to protect them! Small business owners in Arkansas need to know that the state may require certain types of insurance related to specific professions—and some insurance coverages are required for all businesses. Find out more bow!
Required Business Insurance Coverage in Arkansas
Commercial Auto Insurance.
Small business owners whose Arkansas businesses own vehicles are required to purchase commercial auto insurance. The state requirement includes minimum coverage requirements for business-owned vehicles of $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage liability.
Workers’ Compensation Insurance.
Arkansas small businesses with three or more employees are required to carry workers’ compensation coverage. Construction businesses with any employees must also carry workers’ comp. A workers’ compensation policy covers medical bills for work-related injuries and illnesses and provides partial lost wages. In exchange, employers cannot be sued for medical costs.
Recommended Business Insurance Coverage in Arkansas
Small Business Owner’s Insurance.
Bundle property damage insurance and general liability into one comprehensive Business Owner’s Policy (BOP). It’s perfect for small business owners—you get all of the convenience and lower costs! A BOP typically covers losses and damages related to business property, customer medical expenses for onsite third-party accidents like a slip and fall, and advertising damage claims.
General Liability Insurance.
You can obtain General Liability insurance as a separate minimum coverage if your small business doesn’t need property coverage. If you lease space for your Arkansas business, the property contract may require General Liability Insurance. It helps ease the financial burden of customer injury and typically covers property damage, slander and libel lawsuits, and other third-party risks.
Professional Liability Insurance.
Professional Liability (errors and omissions/E&O) insurance helps cover work mistakes and errors, missed deadlines, incomplete work, and negligence lawsuits. Professional Liability coverage is recommended for the small businesses in Arkansas that provide expertise as a service, like finance, design, and technical services, as it can protect them from related damage claims.
Cyber Liability Insurance.
Cybercrime is a concern for all small businesses. Cyber Liability insurance is recommended for Arkansas small businesses to help manage the results of a cyberattack, including help paying for customer notification and fraud monitoring costs and associated legal fees. Cyber insurance helps companies recover from malware, phishing, and other common cyberattacks.
Our Small Business Insurance Company Is Here to Help
- QDoes B2Z offer small business coverage in Arkansas?
- QHow do I get a quote for my small business insurance in Arkansas?A
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