Arkansas Workers’ Compensation Rates by Class Code
In Arkansas, the cost of workers’ comp insurance for businesses varies based on factors such as the industry, size of payroll, and claims history.
Arkansas Workers’ Compensation Rates by Class Code
To give you an idea of the workers' compensation rates for some common industries in Arkansas, see the chart below:
Keep in mind that these figures are estimates and the actual rates for your business may vary.
The National Council on Compensation Insurance (NCCI) sets the workers’ compensation rates in Arkansas. They take several factors into account, such as an employer's industry and their past claim experience. This helps to create a fair and balanced system that encourages employers to prioritize workplace safety while providing the necessary financial protection for employees.
How can I calculate workers' compensation rates in Arkansas?
Take your total annual employee payroll, divide it by $100, and then multiply by your industry rate. This will give you an estimate of your premium.
Please keep in mind: This estimate doesn't include taxes and fees, and your claims history could affect the final cost.
What factors influence your Workers' Comp Premiums?
In Arkansas, workers' compensation insurance premiums are influenced by several factors, such as your industry, class codes, payroll size, claims history, and policy credits or debits. Understanding these factors can help you better manage your workers' comp costs.
Industry
Certain industries, like construction or manufacturing, have higher risk levels, and therefore require higher premium rates.
Payroll size
Your workers' comp premiums are generally calculated based on a percentage of your payroll. Employing more people means a higher payroll, which leads to increased premiums.
Claims history
A better claims history can result in lower premiums, as it reflects a safer work environment for your employees.
Policy credits or debits
Insurance companies can apply policy credits (discount) or debits (surcharge) up to 25% to adjust their filed rates. These adjustments can either increase or decrease your premium.
In addition to these factors, you may also qualify for discounts depending on your company's size and overall claims history.
Keep in mind that online quotes may not always provide an accurate reflection of your workers' compensation premiums. For the most accurate information, it's best to consult with an insurance professional who can assess your unique situation and offer personalized guidance.
Navigating the workers' compensation insurance landscape can be confusing, but by understanding the various factors that impact your premiums, you'll be better equipped to minimize costs while maintaining a safe workplace.
How can you manage your Workers' Compensation costs?
Maintain a safe work environment
Implement safety policies and training programs to help reduce workplace accidents and injuries. A safer workplace leads to fewer claims, which can lower your premiums.
Stay current with your industry's best practices
Regularly review and update your safety protocols to ensure that you're following the latest industry standards to minimize risks and protect your employees.
Invest in a strong return-to-work program
Help injured employees return to work as soon as possible by offering modified duties or alternative jobs. This can reduce the overall costs of workers' compensation claims.
Regularly review your payroll and job classifications
Keep accurate records of your business's payroll and ensure employees are correctly classified in their respective job groups. This can help you avoid overpaying premiums.
Shop around for the best insurance rates
Get quotes from multiple insurance providers and compare the costs and coverage offered. This can help you find the most cost-effective workers' comp policy for your business.
By understanding the factors that influence your workers' comp premiums and taking steps to manage these costs, you can save money while still providing essential coverage for your employees.
Get clear and accurate Workers' Comp Insurance guidance
Are you a business owner in Arkansas, trying to navigate the complex world of workers' compensation insurance? Contact Kickstand Insurance at (866) 338-8823 or start an instant quote to see the current low and high workers' comp rates in Arkansas.
By reaching out, you'll be taking an important step toward securing the right workers' comp insurance for your business and ensuring compliance with Arkansas laws.
Note: The rates listed above have been provided by one of our partner insurance carriers, and were accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in Arkansas at this time. Various factors, such as claim history and business experience can affect the rate as well. Business owners should consult with an insurance agent or the NCCI for accurate and up-to-date rate information.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
Workers’ compensation coverage is required for businesses with more than a certain number of employees. However, because businesses compare quotes from different insurance companies, getting the right coverage can be a guessing game.
