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If you’re a small business owner in Arkansas, chances are, “get business insurance,” is on your to-do list. But do you know where to start?
If you’ve been wondering what coverage you need and how to get insured quickly, you’ve come to the right place. At Simply Business, we’re very familiar with the small business insurance policy options in Arkansas.
This guide breaks it down for you. From general liability insurance to Arkansas workers compensation, we’ll explain the different types of policies, what they may cost, and how you can get protection for your business.
Ready to check this one off your to-do list? Then let’s go!
Many small business owners buy general liability insurance in Arkansas first, as it can help protect against some of the costliest incidents your business might encounter.
For example, if a customer gets injured and blames your business, you could potentially have to pay about $30,000 in medical bills and other damages. But if you have general liability insurance, you may be financially protected up to your policy limit.
General liability insurance is designed to typically cover:
Did you know that 20% of the general liability claims reported are the result of burglaries and thefts? Even if you don’t have a storefront, you could potentially become a crime victim. It could be easy for an employee to steal or for a customer to use counterfeit money.
So you can see that it’s all the more reason to purchase general liability insurance at the start. As long as you’re insured, if an incident occurs, you’d likely just need to pay up to your deductible amount. Then your policy can step in and cover the remainder of the damage up to a certain amount.
Let’s take a look at a few other ways that Arkansas general liability insurance can help protect your business:
You’re an accountant meeting with a client to discuss tax returns. You suddenly spill your cup of coffee on your client’s new (and very expensive) laptop. Fortunately, general liability insurance can help cover the cost of a replacement computer.
You’re a general contractor building an addition on a residential property when the homeowner trips over a piece of your equipment in their driveway. If the homeowner is injured, your general liability insurance can help cover the medical bills, typically including a trip to the ER - up to your policy limit.
You post what you consider to be an innocent comment on social media, but a customer takes offense. Suddenly, you’re being sued for reputational harm. Even if you did nothing wrong, you will still need to hire a lawyer to defend your case. Fortunately, general liability insurance can help pay for your legal costs.
The state of Arkansas typically doesn’t require you to have general liability insurance, but we recommend getting coverage.
If you work in certain industries, you may need to get insured before you get your license to work. For example, most general contractors in Arkansas need professional licenses and insurance. And even if your industry doesn’t require insurance, it’s still probably a good idea to get the coverage.
After all, you don’t want to risk an accident, injury, or property damage without having significant financial protection.
What if you don’t work with tools or machinery? But you provide professional services instead? We’re talking to you — accountants, financial advisors, marketing consultants, photographers, and others.
You still need business insurance.
Here’s why: it’s easy (and fairly common) to be accused of making a mistake on the job. Professional liability insurance in Arkansas could protect business owners who face negligence lawsuits.
Any business owner can make a mistake. We’re human. And even if a mistake isn’t your fault, it’s easy for a customer or vendor to accuse you of negligence. Did you know that 100 million lawsuits are filed in U.S. state courts every year, and the average median cost reported can be as high as $54,000 for a liability suit?
You don’t want to face a lawsuit without significant financial protection. That’s why it pays to get business insurance before working with clients.
Some professionals have a higher risk of being sued. If you fall into one of these occupations, we recommend getting a solid professional liability insurance policy before you work with your first client:
In Arkansas, depending on your profession, you’re likely not legally required to carry professional liability insurance. But just like general liability insurance, it’s highly recommended. If you’re unsure whether you need a policy or not, talk to one of Simply Business’s licensed insurance agents. Give them a call at 855-563-0402 today.
If you have three or more employees, you should add “get Arkansas workers compensation insurance” to your to-do list. Workers compensation offers financial protection if an employee gets sick or injured on the job. It’s designed to help pay for medical bills, rehabilitation, lost wages, and even for job training, if needed.
In Arkansas, employers are generally required to purchase workers compensation insurance if:
We know, the laws can get confusing, and we’ll talk more about that a little later. But here’s the bottom line: It’s important to make sure you’re compliant. If not, you could end up paying a hefty fine to the state.
You can learn more about getting Arkansas workers compensation insurance by visiting the state’s website.
In addition to purchasing general liability, professional liability, and/or workers compensation insurance, you also may want to add on these types of policies:
Commercial automobile insurance: If you drive a business vehicle, whether it’s a delivery car, van, or truck, then you need to buy commercial auto insurance. It’s the law. Your personal auto policy may not cover you, especially if you drive a personal car primarily for business. In Arkansas, the minimum auto coverage you need to have is:
$25,000 per person, per accident, for bodily injury or death
$50,000 for two or more persons, per accident, for bodily injury or death
$25,000 for damage to or destruction of property of others
Umbrella coverage: Sometimes your general or professional liability insurance policy isn’t enough to cover damages. An umbrella policy can help fill in the gaps by paying for additional costs or offering a higher limit.
Convinced about having Arkansas business insurance yet? We hope so. At Simply Business, we feel strongly that every business owner should have the right amount of coverage at the right price.
A licensed insurance agent can help you understand your coverage options. You can also check out our free quote comparison tool to learn what policies are available to you.
Getting workers compensation is more important than just checking a box. This policy is designed to protect you if one of your workers suffers an injury or illness on the job.
Remember, medical bills, lost wages, and rehabilitation can be extremely costly. Without proper coverage, you can potentially be on the hook to pay for those expenses.
If you’re a small business owner with three or more employees, you need to purchase Arkansas workers compensation, or you could risk paying a hefty fine. There are exceptions to the law, however. For example, some employers with fewer than three employees must offer workers compensation as well. This includes employers who have:
When in doubt, it’s best to call the Arkansas Workers’ Compensation Commission with your questions. You can reach them at:
State of Arkansas Workers Compensation Commission 324 South Spring Street P.O. Box 950 Little Rock, Arkansas 72203-0950 1-501-682-3930 / 1-800-622-4472
It really depends on what you do and how many employees you have. It also depends on how much risk your business has.
We know cost is an important consideration, especially if you’re a new business owner. To give you a rough idea, Simply Business’s general liability insurance quotes can be as low as $22.50/month.*
Not bad, huh?
Head over to our online quote tool to find out what business insurance in Arkansas may cost you. It takes just 10 minutes or less to answer a few questions about your business. Then you can compare reasonable quotes from insurers across the nation.
Have questions? Pick up the phone and call a Simply Business insurance agent at 855-563-0402. They’re there to help.
By now you’ve done a lot of reading about Arkansas business insurance. So give yourself a big pat on the back.
If you’re ready to purchase your policy, we have a few tips to make it easier than ever. After all, at Simply Business, it’s our mission to make getting business insurance hassle-free.
Take time to think about the risks your business may face. For example, are you in a flood zone? How safe is your business’s neighborhood? Do you work with tools and machinery? Write down your ideas — they’ll help guide your coverage.
Call other business owners nearby and ask about their policies. Ask them how much coverage they have and what they like or possibly dislike about their business insurance coverage. Remember, it’s smart to keep your competition close.
Look up information about your industry. Some professionals are required to carry insurance, while others aren’t. Find out what guidelines pertain to you.
Spend time on Simply Business’s online quote tool. It’s designed to help you, and make buying business insurance fast and easy.
Think about your business’s budget. Do you want to pay monthly or annual premiums, for example?
If you’d like more helpful tips for buying business insurance, check out our ultimate guide to finding a small business policy.
If you’ve just purchased your first Arkansas business insurance policy, here’s a big congratulations! You’ve just taken a major step toward securing your business’s future.
And if you’re not ready yet, that’s OK. We know that choosing business insurance can be overwhelming. But we’re also here to make it easy for you. Set aside 10 minutes to learn about your coverage options by using our quote tool or calling one of our licensed insurance agents at 855-563-0402. The more you know, the simpler it will be for you.
*Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on January - December 2020 data of 10% of our total policies sold.
This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.