Updated: December 19, 2024
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To find the best workers' compensation insurance in Arkansas, we evaluated several factors, including financial stability, affordability, customer satisfaction and the speed of online quotes. Based on these criteria, Thimble is the best provider in the state.
Workers' compensation insurance is crucial for small business owners since it is legally required in Arkansas. It also provides protection for both the employer and employees, ensuring that medical bills and lost wages are taken care of.
Based on the evaluation criteria provided, Thimble is identified as the top-ranked workers' compensation insurance provider in Arkansas. Here's a detailed overview:
Thimble: Best Workers' Compensation Insurance Provider in Arkansas
- Ranking: Thimble holds a MoneyGeek score of 94 out of 100, making it the best provider in Arkansas based on factors including financial stability, affordability, customer satisfaction, and the speed of online quotes.
- Average Monthly Premium: For a standard business setup with 20 employees and an annual payroll of $1,250,000, Thimble offers an average monthly premium of $83, making it the most affordable option in the state.
- Financial Stability: While specific financial stability ratings are not provided in the content, being ranked highest by MoneyGeek typically implies that Thimble is financially reliable and capable of fulfilling its obligations.
- Customer Service: Thimble is recognized for its strong customer satisfaction scores, which contribute to its overall top ranking. This suggests that the company provides excellent support and service to its policyholders.
Additional Insights:
- Coverage Limits: Policies with Thimble typically include a $1 million total policy limit, $1 million per accident limit, and $1 million per employee limit. These limits provide comprehensive coverage for various workplace incidents.
- Cost Efficiency: For businesses with different employee counts (ranging from five to 100 employees), Thimble remains competitive in terms of pricing. However, for micro businesses with five employees, biBERK offers a lower premium of $54 monthly based on their specific payroll.
- Comparative Costs: The average monthly cost for a business with 20 employees in Arkansas is $112, significantly lower than the national average of $168, further highlighting Thimble's cost-effectiveness.
Conclusion
Thimble stands out as the best option for workers' compensation insurance in Arkansas, excelling in financial reliability, cost-effectiveness, and customer service. While biBERK is a favorable alternative for micro businesses due to lower premium costs, Thimble's overall offering and customer-focused services make it the top choice for most small businesses in the state.
The cheapest workers' compensation insurance provider in Arkansas is Thimble, offering an average monthly premium of $83. This makes Thimble an attractive option for cost-conscious businesses aiming to fulfill legal requirements while managing expenses effectively.
Why Thimble is a Good Option:
1. Affordability: At $83 per month, Thimble's premium is significantly lower than the state average of $112 for a business with 20 employees, and well below the national average of $168. This affordability allows businesses to allocate funds to other critical areas.
2. High MoneyGeek Score: With a score of 94 out of 100, Thimble excels in a balanced evaluation of cost, financial stability, and customer satisfaction. This indicates a strong value proposition, combining low cost with robust service.
3. Tailored for Small Businesses: Thimble's focus on providing competitive rates for businesses based on employee count and payroll highlights its suitability for small to medium-sized businesses. It supports businesses with standard policy limits that cover major claims efficiently.
4. Ease of Access: The simplicity in obtaining online quotes helps businesses quickly understand their potential costs and coverages without cumbersome processes, saving time and reducing administrative overhead.
For businesses in Arkansas needing to comply with workers' compensation laws, Thimble presents a financially viable, reliable, and efficient option. This combination of factors makes it particularly suitable for businesses looking to manage expenses while ensuring legal and safety compliance.
Workers' compensation insurance premiums in Arkansas (as in other states) are influenced by several factors that can cause rates to vary significantly between businesses. Understanding these factors helps businesses optimize their insurance costs while ensuring compliance and adequate coverage for their employees. Here are the key factors that affect workers' compensation insurance premiums in Arkansas:
1. Annual Payroll: Payroll is a primary factor in determining workers’ compensation premiums. Generally, the higher the payroll, the higher the premium. The reason is simple: more payroll correlates with higher risk levels and potential claims. For instance, businesses with larger payrolls, like ones with 100 employees and a $6,250,000 annual payroll, will have higher premiums compared to smaller businesses.
2. Number of Employees: While the number of employees does impact premiums, its effect is often less significant than that of the payroll size. For example, both micro businesses with five employees and larger businesses with 20 employees will see different premium levels due to staff size and payroll differences.
3. Industry and Risk Level: Different industries come with varying levels of risk. Jobs with higher rates of injury, such as construction work, generally carry higher premiums than those in lower-risk environments like office work. Arkansas businesses must consider their specific industry risk profiles when determining their insurance needs.
4. Claims History: Employers with a history of frequent or severe claims might face higher premiums because they are seen as riskier to insure. Maintaining safety standards and reducing workplace injuries can help manage costs.
5. Insurance Provider: Rates can vary between providers based on their underwriting criteria, financial stability, and competitive landscape. For example, Thimble is identified as both the top-rated and most affordable provider in Arkansas, with an average monthly premium of $83 for a typical business setup, while biBERK might be more competitive for specific business sizes.
6. Policy Limits and Terms: Higher policy limits typically result in higher premiums. In Arkansas, typical policy limits include a $1 million total policy limit, a $1 million per accident limit, and a $1 million per employee limit.
7. Legal and Regulatory Requirements: Arkansas mandates that any business with three or more employees must carry workers' compensation insurance. However, some small businesses with fewer employees might be subject to exemptions, which can impact their premium costs and coverage choices.
Ultimately, the best choice of insurance provider, as indicated by affordability, customer service, and financial stability, varies according to these factors. Thimble is recommended overall in Arkansas based on factors considered, while biBERK offers competitive premiums for micro businesses or larger organizations with specific characteristics.
Employers should consult with insurance agents and the Arkansas Workers' Compensation Commission to ensure compliance and to explore ways to optimize their insurance costs based on the factors outlined.
Why Trust MoneyGeek? We collected 677 workers’ compensation insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best workers’ compensation insurance companies for small businesses in Arkansas.
Coverage costs and company information for workers' compensation insurance providers in Arkansas were last updated in 2023.
Thimble is the top-ranked company in Arkansas for workers’ compensation insurance, with a MoneyGeek score of 94 out of 100 and an average monthly cost of $83. The best company for you may vary depending on factors like annual payroll costs and the number of employees you have.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to score and rank insurers:
MoneyGeek used the following business profile to gather quotes:
Thimble offers the best workers' compensation insurance in Arkansas. Premiums cost an average of $83 per month or $992 per year, making it the cheapest option for businesses in the state.
This insurer excels in offering fast quotes, with a remarkable turnaround time of one minute and 32 seconds. This is the fastest among the four providers we evaluated. Thimble received an A financial strength rating, which is lower than other insurers we evaluated but still indicates an ability to pay out claims. However, Thimble received the highest number of customer complaints based on data from the NAIC compared to its competitors.
biBERK, our runner-up for workers' compensation insurance in Arkansas, offers a balance of reliability and excellent service. It offers competitive rates at around $111 per month, making it the second cheapest option in the state. It also boasts few customer complaints overall, indicating a high level of customer satisfaction.
This insurer achieved an exceptional A++ financial stability score from AM Best, reflecting the highest possible rating in terms of financial strength. Additionally, it provides quick online quotes, with a turnaround time of one minute and 45 seconds, which is the second fastest among the evaluated providers.
The cheapest workers' compensation insurance provider in Arkansas is Thimble, with an average monthly premium of $83. For this category, we evaluated quotes for businesses with 20 employees and $1,250,000 in annual payroll costs. Note that the number of employees and payroll can impact the cost of your premium.
Among the providers evaluated, Thimble stands out as the cheapest workers' compensation insurance company in Arkansas. Its affordability is a major strength, with premiums averaging at $83 per month or $992 per year. The next cheapest provider costs $28 more per month. It also has an A financial strength rating, showing that it can typically meet the financial needs of policyholders. Although it is the cheapest option, one drawback is that Thimble received a high number of customer complaints, as reported by the NAIC.
We ranked insurance companies based on their average monthly costs to determine the cheapest provider in the state. Keep in mind that the cheapest option for your small business can vary depending on other factors. Below, you'll find a table showing the annual and monthly costs for insuring an Arkansas business with 20 employees, ranked by monthly cost.
| Thimble | $83 | $992 |
| biBERK | $111 | $1,179 |
| Next | $114 | $1,372 |
| Nationwide | $139 | $1,673 |
biBERK is the overall winner for Arkansas micro businesses with five employees, offering a monthly premium of $54. This premium is based on an annual payroll amount of $312,500.
Micro businesses usually have between one to nine employees, and the number of employees can affect the cost of your premium. However, your annual payroll usually has a greater impact.
biBERK is considered the best option for micro businesses because, while it doesn’t offer the most affordable premiums, it is financially stable and has good customer service. Even though it’s not the cheapest option, biBERK offers an affordable annual cost of $54 per month. Additionally, biBERK provides the advantage of fast online quotes, making it convenient for businesses that need urgent coverage.
biBERK is ranked best overall for Arkansas businesses with 100 employees, offering a monthly premium of $420. This premium is based on an annual payroll amount of $6,250,000. While employee count is a factor in the cost of workers' compensation insurance, payroll typically has a more significant impact on determining the premiums.
biBERK is an excellent choice for midsize businesses seeking a reliable and customer-focused workers' compensation insurance provider. With competitive rates of approximately $420 per month, it is the second-most affordable option we analyzed. While Thimble is cheaper, it receives many more customer complaints on average. In contrast, biBERK's track record of fewer customer complaints highlights its commitment to customer satisfaction. The company's exceptional A++ financial stability rating from AM Best also demonstrates its strong financial foundation.
The average monthly cost of workers' compensation insurance in Arkansas for a business with 20 employees is $112 per month, which is much lower than the national average of $168 per month.
The policy limits we set are:
Below, you'll find a table showing the average cost of workers' compensation insurance for businesses with five, 20 and 100 employees. Note that these figures are provided as a general reference and may vary based on factors specific to individual businesses and insurers.
How was this cost calculated?
To find the average cost of workers’ compensation insurance in Arkansas, we gathered quotes for three types of software development businesses:
| 5 | $57 | $666 |
| 20 | $112 | $1,304 |
| 100 | $460 | $5,370 |
Several factors play a role in determining workers' compensation costs in Arkansas. Understanding these factors is crucial for businesses to manage their insurance expenses effectively.
Insurance providers generally apply a standardized rate for every $100 of payroll, which is determined at the state level and varies across different industries. Businesses with higher payroll costs can expect to pay higher premiums compared to those with lower payroll expenses. In 2022, Arkansas had an average rate of $0.65 per $100 of payroll, which is considerably lower than the rates in many other states.
Insurance premiums for companies with a large workforce tend to be higher due to the increased risk of employee injuries, leading to a greater potential for claims.
The class code assigned to a business represents the nature of work performed by its employees and determines the rate applied for every $100 of payroll. Industries with a higher risk of workplace injuries, like construction, generally have higher rates compared to lower-risk industries, such as consulting.
Insurance providers take into account a business's past claims when calculating rates since companies with a significant history of claims are viewed as higher risk. In Arkansas, the U.S. Bureau of Labor Statistics reported 21,100 nonfatal workplace illnesses and injuries in 2021 for private-industry businesses. Nationally, there were over 2.6 million nonfatal workplace injuries and illnesses recorded in the same year across various private-industry sectors.
Businesses are mandated by law to have workers' comp insurance in Arkansas if they employ three or more workers. However, employers with fewer than three employees should verify their coverage requirements with the Arkansas Workers' Compensation Commission because some businesses might be exempt depending on their specific circumstances.
If employers have any questions regarding their workers' compensation insurance requirements, they can get clarification by contacting their insurance agent or reaching out to the Information Officer, Operations/Compliance Division or Legal Advisor Division of the Arkansas Workers' Compensation Commission.
There might be consequences for employers who do not comply with workers’ comp laws in Arkansas. These can include:
Workers' compensation insurance in Arkansas offers significant benefits for both employers and employees. In the event of a work-related injury or illness, employees can get coverage for necessary medical treatments, including hospitalization, surgeries and rehabilitation services. It also provides compensation for lost income if the employee is unable to work due to an injury or illness. Additionally, it can cover various expenses, such as vocational rehabilitation and death benefits if an employee passes away due to a work-related incident.
For employers, having workers' compensation insurance provides financial protection by ensuring that the business is not responsible for paying medical expenses, lost wages and other costs out of pocket in case of work-related incidents.
The Arkansas Workers' Compensation Commission is the department responsible for overseeing workers' compensation insurance in Arkansas.
To file a claim and receive workers' compensation benefits, employees should report the injury to their employer using Form N or as directed by the employer. The reporting procedures set by the employer must be reasonable and provide employees with reasonable notice of the requirements.
If emergency medical treatment is required outside the employer's normal business hours, the employee should report the injury to the employer on the next regular business day.
If you have questions about workers' compensation insurance in Arkansas, we compiled some frequently asked questions to provide you with answers.
Thimble offers the best workers' compensation insurance in Arkansas with competitive rates at around $83 per month. Keep in mind that the best provider for you will depend on factors like the type of business you have, how many employees you have and the rules set by your state.
The cheapest workers' compensation insurance in Arkansas is offered by Thimble, with an average monthly premium of $83. This cost is based on a business with 20 employees and $1,250,000 in annual payroll costs. It's essential to consider that your location, number of employees and payroll can affect the overall premium.
Yes, Arkansas legally requires businesses with three or more employees to carry workers' compensation insurance. Employers with less than three employees should consult the Arkansas Workers' Compensation Commission to determine if they are exempt from this requirement.
The average monthly cost of workers' compensation insurance in Arkansas for a business with 20 employees is $112. This is significantly lower than the national average of $168 per month.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
