The contract and the policy are two different documents.
Contractors spend their working lives handing over certificates and collecting them from subs, and almost nobody has been told what those pieces of paper actually do. Meanwhile Arkansas has a statute that strips part of the hold-harmless clause you signed — and leaves the part that matters most standing. Here's where a trade account really carries risk, and what Acuity brings to it.
The short answer
Arkansas requires workers' compensation of most employers at three or more employees, but construction is stricter: two or more for building or building repair work, and one or more for a subcontractor or any contractor who subcontracts part of a job. Separately, Ark. Code Ann. § 4-56-104 strips a construction indemnity clause of its reach into the other party's own negligence — but leaves the additional insured mechanism standing, which is how risk still lands on your policy. A certificate proves a policy existed; the endorsement is what actually does anything.
A certificate is evidence. An endorsement is coverage.
Trade accounts run on certificates, and the gap between what a certificate proves and what people believe it proves is where a lot of contractor risk actually lives.
A certificate of insurance shows a policy existed on the day it was issued. It isn't the policy, it doesn't amend the policy, and by itself it grants nobody rights under the policy. Certificates say so in their own language, which almost nobody reads.
So a sub's certificate in your file doesn't establish that the coverage is still in force, that it reaches the work being done, or that your business was ever added to it.
Additional insured status is the thing that does the work, and it happens by endorsement to the policy. Named as an additional insured on a sub's policy, a general contractor can seek defense and coverage there for claims arising out of the sub's work. That's a genuine transfer of risk, which is why it's in nearly every construction contract. It cuts both ways. When you add someone to your policy, you're agreeing your policy may answer for claims involving them. What any given endorsement reaches depends on its specific form and wording, and those vary a great deal. Read the endorsement, not the certificate.
The statute that half-protects you.
This is the one worth understanding properly, because hearing about it and stopping there leads contractors to exactly the wrong conclusion.
Ark. Code Ann. § 4-56-104 addresses construction contract provisions that would make one party indemnify another against that other party's own negligence, and removes the effect of the clause to that extent.
Contractors hear that and reasonably conclude the hold-harmless clause they signed has been defanged. Half right.
What the statute does not disturb is the additional insured mechanism. So a contract can be stripped of an unenforceable indemnity obligation and still transfer substantial risk onto your policy through an additional insured endorsement sitting in the same agreement. The protection and the exposure travel together, and they're usually two clauses apart in the same document. A contractor who reads about the statute, decides the paperwork is handled, and stops reading the insurance requirements has found the most expensive possible place to relax. This is general information, not legal advice — have contracts reviewed by an attorney. Bring us the insurance exhibit and we'll tell you what your policy would actually have to do to satisfy it.
Construction hits the threshold first.
Three or more employees
The baseline under the Arkansas Workers' Compensation Act at Ark. Code Ann. § 11-9-401 and following. Most employers past three are required to carry coverage.
Two or more employees
Building or building repair work triggers the requirement earlier than the general rule. If your trade puts hands on a structure, this is the line that applies rather than the three-employee one.
One or more, if you sub out
A subcontractor, or a contractor who subcontracts any part of a contract, is required to carry coverage at one or more employees. For most trade operations in this market, this is the rule that actually governs.
The Commission attaches its own caveat and we're keeping it here: exceptions to the three-or-more rule exist, and employers below a threshold should check rather than assume they're exempt. Between the construction rule, the subcontracting rule, how workers are classified, and who counts as an employee, "we've only got a couple of guys" is not a safe conclusion to reach alone. Confirm with the Arkansas Workers' Compensation Commission, or bring us your payroll by classification and we'll walk it through. This is general information, not legal advice. Full coverage detail on our workers' compensation page.
Four policies, and the seams between them.
Short descriptions — each links to the full explainer, which goes deeper than a carrier page should.
General liability
Third-party injury and property damage, and the policy every insurance exhibit is really written about. It's also where the additional insured endorsements land. How general liability works.
Commercial auto
Owned vehicles, plus the exposure from crews driving their own trucks to site — which is the most common uninsured gap on a trade account. Acuity commercial auto.
Inland marine
Tools and equipment that move between sites. Not general liability, not commercial property, and not the auto policy — the truck is covered, the contents aren't. Inland marine, explained.
Commercial umbrella
The excess layer above general liability, commercial auto, and workers' comp — frequently required by contract at a stated limit. A personal umbrella does not reach the business. Commercial umbrella.
The failures we see aren't inside any one of these — they're in the seams. Tools insured nowhere because everyone assumed the auto policy had them. A truck on a personal form. A commercial umbrella that satisfies one contract and not the next one. An additional insured endorsement the contract required that nobody ever requested. That's why a trade account wants one person looking at all four at once, and why we ask for the contracts rather than just the declarations pages. Coverage detail by trade is on our contractors insurance hub.
A commercial book actually aimed at the trades.
Plenty of carriers will write a contractor. Acuity's commercial book is built around contractors and the trades rather than treating them as an awkward class, which matters when the account has crews, trucks, tools, and job-site liability all moving at once. It's a mutual insurer owned by its policyholders, carries an A+ from AM Best and separately an A+ from Standard & Poor's, and sells only through independent agents. Eligibility for any particular trade and operation is decided by the carrier on the facts, not by a webpage — so the fastest route is a conversation. Full detail on the Acuity hub.
Driven by payroll, class, and paperwork.
Contractor premiums span too wide a range for a published figure to be useful. What drives yours: your trade and how the work is classified, payroll by classification, the vehicles and who drives them, the value of tools and equipment, claims history and experience rating, the limits your contracts require you to carry, and how much work you subcontract. This is a description of how the coverage is rated, not a quote and not a guarantee. Send the insurance requirement exhibits alongside your declarations pages — contract requirements dictate how the account has to be built more often than anything else does, and reading them first is faster than rewriting the policy afterward.
Where the rest of the account sits.
Acuity contractors insurance questions.
When does a contractor need workers compensation in Arkansas?
Sooner than most trades expect. The general rule under the Arkansas Workers Compensation Act at Ark. Code Ann. § 11-9-401 and following is three or more employees. Construction is treated differently: building or building repair work triggers the requirement at two or more employees, and a subcontractor, or a contractor who subcontracts any part of a contract, is required to carry coverage with one or more employees.
The Arkansas Workers Compensation Commission also states that exceptions to the three-or-more rule exist and that employers below a threshold should check rather than assume they are exempt. Because the answer turns on your classifications and how you engage workers, confirm it with the Commission or ask us. This is general information, not legal advice.
Isn't a certificate of insurance proof that I'm covered?
A certificate is evidence that a policy existed on the day it was issued. It is not the policy, it does not amend the policy, and it does not by itself grant anybody rights under the policy. Certificates carry language saying exactly that, and almost nobody reads it.
A subcontractor's certificate on your file does not mean the coverage is still in force today, that it covers the work being done, or that your business has been added to it. The document that matters is the policy and its endorsements. We collect certificates because contracts require them, and we read the endorsements because that is where the answer actually lives.
What does additional insured status actually do?
It extends a party's coverage to another party by endorsement, so that a general contractor named as an additional insured on a subcontractor's policy can seek defense and coverage under that policy for claims arising from the sub's work. That is a real transfer of risk, and it is why it appears in nearly every construction contract.
The important point cuts both ways: when you add someone as an additional insured on your policy, you are agreeing that your policy may respond to claims involving them. What any endorsement reaches depends on its specific form and wording, which vary considerably. Read the endorsement, not the certificate.
Does Arkansas law limit indemnity clauses in construction contracts?
Yes, and the limit is narrower than contractors often assume. Ark. Code Ann. § 4-56-104 addresses construction contract provisions that would require one party to indemnify another against that other party's own negligence, and removes the effect of the clause to that extent. What it does not do is disturb the additional insured mechanism.
So a contract can be stripped of an unenforceable hold-harmless obligation and still transfer substantial risk to your policy through an additional insured endorsement. Contractors who hear about the statute sometimes conclude they are protected and stop reading the insurance requirements, which is exactly the wrong conclusion. This is general information, not legal advice; have contracts reviewed by an attorney.
Are my tools and equipment covered by my general liability policy?
No. General liability responds to third-party bodily injury and property damage, not to your own property. Tools and equipment belong on inland marine, sometimes called contractors equipment coverage, which is built to insure property that moves between job sites rather than sitting in one building.
Your commercial auto policy covers the truck and not what is in the bed, and a commercial property policy covers a fixed location. This is the gap that produces the most frustrating contractor claims we see: a break-in yields a covered window and several thousand dollars of uncovered tools. If tools travel, say so.
Why does Cribb place contractor business with Acuity?
Because Acuity's commercial book is genuinely built around contractors and the trades rather than treating them as an awkward class, and contractors are a large share of what we write across Benton and Washington counties.
Acuity is a mutual insurer owned by its policyholders, carries an A plus rating from AM Best and separately an A plus from Standard and Poor's, and sells only through independent agents. Whether it fits your operation depends on your trade, payroll, vehicles, and claims history, and that eligibility is decided by the carrier on the facts of your business rather than by a webpage.
How do I get an Acuity contractor quote in Bentonville or Rogers?
Start a commercial quote online or call (479) 286-1066. Bring more than the declarations pages: send the contracts and the insurance requirement exhibits you have been asked to satisfy, your payroll by classification, the vehicle and driver list, and a schedule of tools and equipment.
Contract requirements are the thing that most often dictates how an account has to be built, and reading them before we quote is faster than rewriting the policy afterward. We quote Acuity against our other commercial markets before telling you whether it is the right home for the account.
If our coverage explainers are useful, mark Cribb Insurance as a preferred source so more Northwest Arkansas contractors can find our local, plain-English guides.
Send the contract, not just the declarations page.
The insurance exhibit you've been asked to satisfy tells us more about how your account has to be built than anything else will. We'll tell you what your policy would actually have to do to meet it, where the seams are between your four policies, and how Acuity compares against our other commercial markets.
Cribb Insurance Group Inc. is an independent insurance agency licensed in Arkansas, Oklahoma, Missouri, and Texas. We are not Acuity, and this page is not endorsed, sponsored, reviewed, or approved by Acuity. "Acuity" is a trademark or service mark of ACUITY, A Mutual Insurance Company and its affiliates, used here nominatively to identify products we are appointed to place. Acuity's Arkansas commercial policies are issued by Acuity-affiliated underwriting companies.
This page describes contractors insurance in general, industry-standard terms for informational purposes only. It is not a policy, not an offer of insurance, and not a guarantee of coverage, availability, eligibility, or price. General liability, commercial auto, inland marine and contractors equipment coverage, commercial umbrella, workers' compensation, additional insured endorsements, limits, deductibles, and exclusions are set by the carrier, vary by state and by policy and over time, are subject to the carrier's underwriting approval and eligibility, and apply only as written in the policy actually issued. Eligibility for any trade or operation is determined by the carrier on the facts of your business; this page makes no representation that any particular contractor qualifies.
Statements about certificates of insurance, additional insured status, indemnity and hold-harmless provisions, and Ark. Code Ann. § 4-56-104 are general information about how these instruments commonly operate. They are not legal advice, not a legal opinion, and not a coverage determination, and they are simplified rather than complete statements of the law. What any endorsement provides depends on its specific form and wording. Whether any contract provision is enforceable, and what it requires of you, depends on the contract, the facts, and applicable law. Have your contracts and insurance requirement exhibits reviewed by an attorney.
Statements about Arkansas workers' compensation requirements — including the general three-or-more employee rule, the two-or-more rule for building or building repair work, and the one-or-more rule for subcontractors and contractors who subcontract any part of a contract, under the Arkansas Workers' Compensation Act, Ark. Code Ann. § 11-9-401 et seq. — are general information rather than legal advice, are simplified, and are subject to change. Exceptions exist and whether the requirement applies to your business depends on your employee count, worker classifications, and operations. Confirm with the Arkansas Workers' Compensation Commission or a qualified professional.
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. Last reviewed August 2026.