Required by law. Priced by your losses.
If you have employees in Arkansas, workers comp usually isn't optional — and going without it is far more expensive than the premium. Here's who has to carry it, how your class codes and experience mod actually set the price, what the policy pays, and why BHHC's in-house claims and pay-as-you-go billing matter on a line this long-tailed.
The short answer
Most Arkansas employers with three or more employees are legally required to carry workers compensation (the threshold is lower — two, or even one — for construction and subcontractors). Skipping it risks fines up to $10,000 and loss of the exclusive-remedy shield that normally stops an injured employee from suing you. Your premium is set by payroll × class code × experience mod, so clean claims and fast return-to-work lower it over time. BHHC handles comp claims in-house, emphasizes return-to-work, and offers pay-as-you-go billing — backed by an A++ (Superior) balance sheet on claims that can pay for years.
Going bare costs more than the policy.
Owners sometimes treat comp as a line item to trim. On a line where a single injury can run six figures and the law removes your legal protection if you're uninsured, that's the most expensive corner to cut.
$10,000 penalty for going without
Arkansas can penalize employers who fail to carry required coverage with fines up to $10,000 and, in some cases, a Class D felony — before a single injury is even in the picture.
And then the lawsuit shield disappears.
Workers comp is a trade. It pays your employee's medical and wage costs after an on-the-job injury, and in exchange, the employee generally can't sue you for pain and suffering. That's the "exclusive remedy," and it's the real value of the system to an employer.
Drop the coverage, and the shield drops with it. An injured employee can then sue you directly, and you're personally exposed for medical bills, lost wages, rehab, and damages. One back surgery can top $100,000. The premium is almost always the smaller, more predictable number — which is the entire point of buying it.
Who has to carry it — and who's exempt.
As a general rule, most Arkansas employers with three or more employees must carry workers compensation. Two industries have lower thresholds worth knowing: construction generally triggers coverage at two or more employees, and a contractor who subcontracts work generally needs it with one or more. Full-time and part-time both count toward the tally.
There are real exemptions — among them agricultural farm labor, domestic workers, real estate agents, and employees of certain religious or charitable nonprofits, plus workers covered exclusively by federal law such as railroad and maritime. Sole proprietors, partners, and LLC members can file a Certificate of Non-Coverage to opt out for themselves, though if you hire others you generally still owe them coverage.
Because the definitions and exceptions genuinely shift, the honest advice is to confirm your specific situation with the Arkansas Workers Compensation Commission (AWCC) or your agent rather than trusting a webpage to be current on the statute. What doesn't change: if you have employees, the exposure is real, and that's what the policy is for.
Even when you're exempt, coverage can be the smart buy.
An owner who qualifies for a Certificate of Non-Coverage can still choose to be covered — and many do, because a serious injury with no comp policy means no medical or wage benefits and full personal exposure. Exempt isn't the same as protected. If you're weighing it, that's a five-minute conversation, not a guess.
The coverages inside a comp policy.
Medical Benefits
Covers reasonable and necessary medical care for a work-related injury or illness — emergency treatment, surgery, prescriptions, and rehabilitation — with no deductible to the injured employee.
Wage Replacement
Indemnity benefits replace a portion of lost wages while an injured worker recovers, and provide for permanent disability where an injury doesn't fully heal — paid per the Arkansas benefit schedule.
Employers Liability
The second half of the policy. It responds to certain injury-related suits that fall outside the statutory comp system, backstopping the exclusive-remedy protection where gaps can appear.
Return-to-Work & Nurse Case Management
Not a coverage line, but the machinery that drives your cost. BHHC emphasizes getting injured employees appropriate care and back to suitable work quickly — which limits the claim and, over time, your mod.
In-House Claims
BHHC handles comp claims with its own teams rather than outsourcing, adding fraud prevention and specialized handling. On a long-tail line, who touches the file matters as much as the coverage form.
Pay-As-You-Go
Premium calculated from actual payroll each period, via pay-as-you-go or monthly payroll reporting — smoothing cash flow and shrinking the odds of a large year-end audit bill.
The three levers on your premium.
Workers comp isn't quoted off a menu of discounts — it's built from your own numbers. Three of them do almost all the work.
Class Codes
Every job maps to a class code with a rate per $100 of payroll. A roofing code costs far more than a clerical one. Getting employees coded correctly — and split accurately — is often the fastest way to fix an inflated premium.
Experience Mod
The factor that adjusts your premium up or down based on your own loss history versus similar businesses. Clean claims pull it below 1.0; frequent claims push it above. It follows you, so it rewards prevention.
Payroll & Audit
Premium tracks payroll, trued up at audit. Under-report and you owe at year-end; over-estimate and you've floated the carrier money. Pay-as-you-go keeps it honest in real time.
Return-to-Work
Not a discount you ask for — an outcome you build. Every claim closed faster and every worker back on suitable duty sooner feeds a lower mod next year. This is where BHHC's model is designed to pay off.
If you have a payroll, ask.
BHHC writes comp for a broad range of businesses. Appetite and eligibility depend on class, loss history, and state, so treat this as a starting point, not a promise.
Strong on comp doesn't mean cheapest for you.
BHHC is one of the better-known names in workers comp, but no single carrier wins every class. That's the whole reason to run it through an independent agency: we quote BHHC alongside our other commercial markets and tell you which one actually prices your class and loss history best.
Your numbers, not a table.
Comp premium comes off your payroll by class code, the rate for each code, and your experience modification factor — not a planning number we could print without misleading you. This isn't a quote or a guarantee. What reliably helps: bringing accurate payroll splits, your prior loss runs, and your current mod worksheet so the comparison across carriers is apples-to-apples. That's the number we'll build with you.
Backed by an A++ (Superior) carrier.
On March 30, 2026, AM Best affirmed the Financial Strength Rating of A++ (Superior) — its highest level — and the Long-Term Issuer Credit Rating of "aa+" (Superior), stable outlook, for Berkshire Hathaway Homestate Insurance Company and its property-casualty affiliates. On a line where claims can pay medical and wage benefits for years, the ability to pay the whole way is not a footnote.
Where we earn it on a comp policy.
The comp mistakes are consistent: employees mis-coded into a costlier class, a mod that never gets reviewed for errors, an audit nobody prepped for, and no plan to get injured workers back to work. We fix those at the quote and again at renewal. And because we're independent, if BHHC isn't the best home for your class, we place it with one of our other commercial markets instead.
The policies around this one.
BHHC workers comp questions.
Does my Arkansas business have to carry workers compensation?
Probably, if you have employees. Under Arkansas law, most employers with three or more employees are required to carry it. The threshold is lower for some industries: construction generally requires coverage at two or more, and a contractor who subcontracts generally needs it with one or more.
Several groups are exempt — including agricultural farm labor, domestic workers, real estate agents, and employees of certain religious or charitable nonprofits, plus workers covered exclusively by federal law. Sole proprietors, partners, and LLC members can file a Certificate of Non-Coverage to opt out for themselves. Confirm your situation with the AWCC or your agent, since the exceptions are real.
What happens if I don't carry it and someone gets hurt?
Two bad things at once. Arkansas can penalize non-compliance with fines up to $10,000 and, in some cases, a Class D felony. And you lose the exclusive-remedy protection that normally stops an injured employee from suing you.
Without coverage, that shield is gone — an injured employee can sue you directly, leaving you personally on the hook for medical bills, lost wages, and damages. A single serious injury can run into six figures. The premium is almost always the smaller number.
How is my workers comp premium calculated?
Three things drive it: payroll, class codes, and your experience modification factor. Each type of work has a class code with a rate per $100 of payroll, so a roofing payroll costs far more than a clerical one. Your mod then adjusts that up or down based on your own loss history versus similar businesses.
Because the mod follows your losses, the biggest long-run lever is getting injured employees healthy and back to work quickly — which is exactly what BHHC's return-to-work and in-house claims focus is built around.
What does BHHC do differently on workers comp?
BHHC handles comp claims with its own in-house teams rather than outsourcing them, and leans on return-to-work programs, nurse case management, and fraud prevention to drive better outcomes. On a line where claim outcomes set your mod and your renewal, that machinery matters.
It also offers cash-flow-friendly billing, including pay-as-you-go and monthly payroll reporting, and is backed by an A++ (Superior) balance sheet — which matters on claims that can pay out for years.
What is pay-as-you-go workers comp?
It's a billing method where premium is calculated from actual payroll each pay period rather than estimated up front and trued up at a year-end audit. BHHC offers pay-as-you-go and monthly payroll-reporting options.
For a business with seasonal or variable headcount, that smooths cash flow and shrinks the odds of a large, unexpected audit bill. Whether it fits your payroll rhythm is a quick setup conversation — and it's one of the more common reasons an owner moves a comp policy.
How do I get a BHHC workers comp quote in Northwest Arkansas?
Start at our commercial quote form or call (479) 286-1066. To make the comparison real, have your payroll broken out by class code, your prior loss runs, and your current experience modification worksheet ready.
We'll quote BHHC against our other commercial markets and tell you honestly which one prices your risk best — because BHHC is strong on comp but not automatically the cheapest for every class of business.
If our coverage guides and carrier comparisons are helpful, mark Cribb Insurance as a preferred source so more Northwest Arkansas business owners can find our local explanations.
BHHC is one of 40+ carriers we represent.
Which means we can tell you honestly whether BHHC's workers comp is the right home for your business — or whether one of our other markets fits your class better. Send your payroll by class code, your loss runs, and your current mod, and we'll build a real comparison, prep you for the audit, and set up return-to-work so next year's mod works for you. If a different carrier fits better, we'll say so.
Cribb Insurance Group Inc. is an independent insurance agency licensed in Arkansas. We are not Berkshire Hathaway Homestate Companies or Berkshire Hathaway Inc., and this page is not endorsed, sponsored, reviewed, or approved by them. "Berkshire Hathaway Homestate Companies" and "BHHC" are marks of their respective owners, used here nominatively to identify a carrier we may place. BHHC's Arkansas commercial policies are issued by the Berkshire Hathaway Homestate group underwriting companies.
This page describes coverage in general terms for informational purposes only. It is not a policy, not an offer of insurance, not legal advice, and not a guarantee of coverage, availability, eligibility, or price. Workers compensation benefits are governed by Arkansas statute and the rules of the Arkansas Workers Compensation Commission; class-code rates and experience modification factors are determined by the applicable rating organization and the carrier, not by the agency. Coverage, program terms, billing options, product availability and eligibility vary by state, by class of business, by policy, and over time, are set by the carrier, and are subject to underwriting approval and to the terms, conditions, limits, and exclusions of the policy actually issued. If anything on this page conflicts with the issued policy, the policy controls.
Statements about Arkansas workers compensation requirements, exemptions, and penalties are general information, not legal advice, and the rules change; confirm current requirements with the Arkansas Workers Compensation Commission and applicable authorities. Financial strength ratings are opinions of an insurer's ability to meet its ongoing insurance obligations, are subject to change, are not recommendations to purchase, hold or terminate any policy, and do not address an insurer's claims-handling practices; current ratings are at ambest.com. The A++ (Superior) Financial Strength Rating and "aa+" (Superior) Long-Term Issuer Credit Rating referenced were affirmed by AM Best on March 30, 2026 with a stable outlook for Berkshire Hathaway Homestate Insurance Company and its property-casualty affiliates.
Last reviewed July 2026.