Business owners in Arkansas would do well to be aware and pay close attention to the relevant workers’ compensation law. This is important not only for the workers but also for the companies because non-compliance could result in penalties and fines.
Arkansas Workers’ Compensation
According to state laws, if your business employs three or more staff, you must provide workers’ compensation insurance. However, the exception to this general rule is that you will still need to provide this requirement even if you have less than three staff members and if the industry you are in is considered to be high risk. An example of a high-risk industry would be construction.
Another thing you should make careful note of is that the burden of the cost of the insurance falls squarely on the employer. Therefore, it cannot be deducted out of the pay given to the employee.
Workers’ Compensation insurance is an effective way for your company to protect itself from losses if an employee suffers an injury in the course of fulfilling their jobs. With insurance coverage, your company can fulfill the compensation rightfully deserved by the employee, but without having to shell out from your company’s own pockets.
What’s Covered by Workers’ Compensation
Under the law, the insurance cost will be computed based on how dangerous or risky the job is. The coverage may also vary per staff, depending on the role they have in the company. This is why it’s important to consult with a professional agency, such as Providence Insurance Agency, so you would know what applies to your business.
Typically covered in this type of insurance are the cost of settlements in case of workplace injury, therapies or treatments related to said injury, and lost wages as a result of the injury.
If you still don’t have workers’ compensation insurance for your business, get started today. Consult with a reputable agency like Providence Insurance Agency to know how you can best protect your business.