3.2 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.

Exam Focus

For Arkansas Liability Insurance, separate the duty to defend from the duty to indemnify. Liability questions often turn on who is an insured, whether injury or damage occurred during the policy period, whether an exclusion applies, and whether the claim belongs under general liability, auto liability, professional liability, umbrella, or workers' compensation coverage. For state-specific items, focus on required coverage, prohibited claim practices, and producer explanations. In every scenario, identify the injured party, alleged act, policy trigger, and any exclusion before choosing an answer.