Key Takeaways

  • Commercial General Liability (CGL) protects businesses from third-party claims
  • Workers' compensation is required for most Arkansas employers
  • Professional liability covers errors and omissions in professional services
  • Umbrella policies provide additional liability coverage above underlying policies
  • Arkansas businesses should carry adequate limits to protect against lawsuits
Last updated: January 2026

Arkansas Liability Insurance

Commercial General Liability (CGL)

Coverage A - Bodily Injury & Property Damage

  • Third-party bodily injury claims
  • Third-party property damage claims
  • Legal defense costs (in addition to limits)

Coverage B - Personal & Advertising Injury

  • Libel, slander, defamation
  • False advertising
  • Copyright infringement
  • Wrongful eviction

Arkansas Workers' Compensation

Requirements

  • Required for employers with 3+ employees
  • Must cover all employees
  • No-fault system
  • Exclusive remedy for workplace injuries

Benefits Provided

  • Medical benefits (no deductible)
  • Disability benefits (temporary and permanent)
  • Death benefits to dependents
  • Vocational rehabilitation

Professional Liability

Covers:

  • Errors and omissions in professional services
  • Negligence in providing advice
  • Claims-made trigger typically used
  • Tail coverage may be needed

Exam Tip: Arkansas requires workers' compensation for employers with 3 or more employees. Penalties for non-compliance include fines and loss of exclusive remedy protection.

Test Your Knowledge

How many employees must an Arkansas employer have before workers' compensation is required?

A
B
C
D