What insurance is required for Arkansas contractor licensing?

Arkansas contractors must carry general liability insurance and workers' compensation if they have employees. Surety bonds are also required - $10,000 for commercial contractors and varying amounts for residential contractors. All insurance and bond certificates must be filed with the Arkansas Contractors Licensing Board.

How much does contractor insurance cost in Arkansas?

Arkansas contractor insurance costs vary by trade and business size. General liability insurance typically costs $42/month ($504 annually) for small contractors. Workers' compensation averages $56/month, and professional liability averages $83/month. Total annual costs range from $2,400-$2,500 for comprehensive coverage.

Where do I apply for an Arkansas contractor license?

Apply through the Arkansas Contractors Licensing Board online at arkansascontractors.com. Commercial contractor licenses require $100 application fee plus $84 exam fee ($184 total). Residential licenses range from $50-$100. Processing typically takes 2-4 weeks.

🏆 #3 Nation for Construction Growth

Arkansas Contractor Insurance

Get licensed and insured in Arkansas with competitive rates, comprehensive coverage, and expert guidance through Arkansas Contractors Licensing Board requirements.

9.1%

Growth Rate

67K

Construction Jobs

$45

LLC Filing Fee

31%

4-Year Expansion

3.1M

Population

$100-$150

Monthly Insurance

$100

License Application

Arkansas Contractor Insurance Guide

Complete resource for licensing, insurance, and business formation

Licensing Requirements

• Arkansas Contractors Licensing Board requirements
• Commercial vs. residential licensing
• Application process and fees
• Reciprocity agreements

Insurance Coverage

• Workers' compensation requirements
• General liability insurance
• Commercial auto coverage
• Bonding requirements

Business Formation

• Arkansas LLC formation ($45 fee)
• Business registration process
• Tax requirements and EIN
• Registered agent requirements

Legal Environment

• Statute of repose laws
• Mechanic's lien procedures
• Building codes and compliance
• Environmental requirements

Quick Answers for Arkansas Contractors

Fast facts about Arkansas licensing and insurance

$184

Commercial License Cost

$100 application + $84 exam fee for projects over $50,000

$45

LLC Filing Fee

Arkansas Secretary of State LLC formation cost

2-4 weeks

License Processing

Typical timeframe for Arkansas contractor license approval

$10,000

Surety Bond

Required bond amount for commercial contractors

5 years

Statute of Repose

Construction defect liability period in Arkansas

9.1%

Job Growth

Arkansas construction employment growth rate

Arkansas Business & Construction Statistics

Key metrics and data for contractors considering Arkansas licensing and business formation

Population & Demographics

Total Population

+0.62% (2024)

3,088,354

Median Household Income

25% below US average

$58,773

Average Household Income

Growing steadily

$82,554

Housing Unit Growth

July 2023-2024

0.9%

Construction Industry Performance

Employment Growth

#3 nationally for growth

9.1%

Jobs Added

April 2023-2024

+5,700

Total Construction Jobs

June 2024

67,100

4-Year Expansion

Highest in southeast region

31%

Economic Indicators

Construction Industry Ranking

National industry strength

Construction Laborer Salary

Average annual

$33,400/yr

Weekly Wages

Below national $1,507

$1,257-$1,491

Business Environment

Construction-friendly

Growing

Licensing & Business Formation

LLC Filing Fee

Arkansas Secretary of State

$45

Commercial License

Plus $84 exam cost

$100

Residential License

Depending on type

$50-$100

Annual Franchise Tax

Due May 1st annually

$150

Arkansas Construction Industry Highlights

Why contractors are choosing Arkansas for business expansion

National Construction Growth Ranking

31%

Construction Job Growth Since 2020

Construction Industry Strength

$45

Low LLC Formation Cost

Data sources: U.S. Census Bureau, Arkansas Department of Labor, Arkansas Secretary of State, Associated General Contractors of America (2024)

Arkansas Contractor Cost Breakdown

Complete cost analysis for getting licensed and insured in Arkansas

Licensing Costs

Commercial License$184

Residential License$50-$100

Annual Renewal$25-$50

Surety Bond$10,000

Business Formation Costs

LLC Filing Fee$45

Expedited Processing+$50-$100

Annual Franchise Tax$150

Registered Agent$100-$300/yr

Insurance Costs (Monthly)

General Liability$42

Workers' Compensation$56

Professional Liability$83

Commercial AutoVaries

Total First Year

Setup Costs$229-$329

Insurance (Annual)$2,172

Total Investment$2,400-$2,500

Arkansas Contractor License Requirements

Complete guide to Arkansas Contractors Licensing Board requirements

Commercial Contractor License

Project Threshold: $50,000+

Required for all commercial construction projects over $50,000

Application Fee: $100

Plus $84 examination fee

Surety Bond: $10,000

Required for license approval

Financial Statement

CPA-compiled showing $50,000 net worth

Renewal: $50 annually

Late fee: $100

Residential Contractor Licenses

Residential Builder: $100

New construction and major renovations

Residential Remodeler: $50

Remodeling and renovation work

Home Improvement: $50

General home improvement projects

Project Threshold: $2,000+

Required for residential work over $2,000

Renewal: $25-$50

Annual, late fees: $50-$100

Important Notes

• Applications remain active for 90 days after submission
• Processing time: 2-4 weeks for review, 1-2 weeks for issuance
• No continuing education requirements for renewal
• Reciprocity available with Alabama, Louisiana, Mississippi, Tennessee

Arkansas Contractor Insurance Coverage Types

Essential insurance coverage for Arkansas contractors

Required Coverage

Workers' Compensation

Required for 3+ employees (construction industry requires regardless of count)

Coverage: $500,000/$500,000/$500,000
Average Cost: $56/month

Surety Bond

Required for commercial contractor licensing

Amount: $10,000 minimum
Purpose: Client protection

Recommended Coverage

General Liability

Protection against third-party claims

Coverage: $1M/$2M standard
Average Cost: $42/month

Commercial Auto

Required for all business-owned vehicles

Coverage: $1M Combined Single Limit
Varies by vehicle and use

Professional Liability

Errors and omissions protection

Average Cost: $83/month
Protects against professional mistakes

Arkansas Statute of Repose

Arkansas construction liability laws and time limitations for contractor claims

5 Years

Construction Defects

From substantial completion of project

4 Years

Personal Injury

Wrongful death from construction defects

3 Years

Tort Claims

From discovery of defect

Note: Some cases may extend to 7-10 years if defects are not immediately discoverable. Discovery rule may apply in certain circumstances.

Arkansas Legal Advantages for Contractors

Business-friendly legal environment supporting contractor success

⚖️

Reasonable Liability

5-year statute of repose provides reasonable protection timeline

🏗️

Strong Lien Rights

120-day lien filing period protects contractor payment rights

📋

Streamlined Licensing

No continuing education requirements for license renewals

🤝

Reciprocity Agreements

Mutual recognition with Alabama, Louisiana, Mississippi, Tennessee

💼

Low Business Costs

$45 LLC formation fee among lowest in the nation

📈

Growing Market

31% construction job growth creates opportunities

Arkansas Service Areas

CCA serves contractors throughout Arkansas's 75 counties and major metropolitan areas

Central Arkansas

• Little Rock (Pulaski County)
• North Little Rock
• Conway (Faulkner County)
• Benton (Saline County)
• Hot Springs (Garland County)

Major commercial construction hub with government and healthcare projects

Northwest Arkansas

• Fayetteville (Washington County)
• Springdale
• Rogers (Benton County)
• Bentonville
• Fort Smith (Sebastian County)

Fast-growing tech and retail corridor with corporate headquarters

Other Major Areas

• Jonesboro (Craighead County)
• Pine Bluff (Jefferson County)
• Texarkana (Miller County)
• El Dorado (Union County)
• Russellville (Pope County)

Manufacturing, agriculture, and industrial construction centers

Full Coverage: We provide contractor insurance services in all 75 Arkansas counties, from urban centers to rural communities throughout the Natural State.

Arkansas Business Formation for Contractors

Form your contracting business in Arkansas with low costs and streamlined processes

Arkansas Business Formation Benefits

$45

LLC filing fee

2-3 weeks

Standard processing

$150

Annual franchise tax

Online

Secretary of State filing

LLC Formation Requirements

• File Articles of Organization ($45)
• Designate registered agent with AR address
• Choose name ending with "LLC"
• Obtain EIN from IRS (free)
• Pay annual franchise tax ($150)

Processing Options

• Standard: 2-3 weeks ($45)
• Expedited: 7-9 days (+$50)
• Rush: 4-5 days (+$100)
• Registered agent: $100-$300/year
• Applications active for 90 days

Arkansas LLC Formation for Contractors

Arkansas offers one of the most affordable LLC formation processes in the nation at just $45, with straightforward requirements and fast processing times.

LLC Benefits for Arkansas Contractors

• Personal asset protection from business liabilities

• Pass-through taxation avoiding double taxation

• Management flexibility and fewer formalities

• Professional credibility with clients

• Easier access to business banking and credit

• Potential tax advantages for contractors

Arkansas County Requirements

Arkansas has 75 counties with varying local requirements beyond state licensing

Pulaski County (Little Rock)

Largest construction market in Arkansas

• Business license required for city operations
• Multi-departmental review for permits
• 2-4 month timeline for commercial projects
• Violation fees: $500-$1,000 per day

Sebastian County (Fort Smith)

Major industrial and manufacturing center

• Annual business licenses approximately $100
• Arkansas State Contractors License required
• Same state thresholds apply
• Local permit requirements for construction

Benton County (Rogers)

Fast-growing Northwest Arkansas region

• State contractor license requirements apply
• $2,000+ residential, $50,000+ commercial
• Local building permits required
• Corporate headquarters construction boom

General Local Requirements

Business Operations

• Basic business license from city/county
• Zoning compliance verification
• Sign permits for business signage

Building Permits

• Professional sealed plans for commercial
• Permit fees vary by project scope
• Inspection fees: $150-$300+ per inspection

Why Choose CCA for Arkansas Contractor Insurance

Arkansas construction industry expertise with comprehensive support

🏛️

Arkansas Licensing Expertise

Complete understanding of Arkansas Contractors Licensing Board requirements

📈

Growth Market Knowledge

#3 national construction growth expertise serving expanding market

🤝

Local Presence

Arkansas construction specialists serving all 75 counties

💰

Competitive Rates

Tailored pricing for Arkansas contractors with multiple carrier options

⚡

Fast Service

Quick quotes and same-day coverage available for urgent needs

📋

Compliance Support

Help with licensing, bonding, and regulatory compliance

Arkansas Business Registration Process

Step-by-step guide to registering your contracting business in Arkansas

Choose business structure (LLC, Corporation, etc.)

Obtain Federal EIN from IRS (free online)

Apply for contractor license through Arkansas Contractors Licensing Board

Obtain required insurance coverage and bonding

Obtain local business licenses as required

Arkansas Business Formation Benefits

Arkansas offers a contractor-friendly business environment

$45

Low formation fees

2-3 weeks

Fast processing

Growing

Construction market

Online

Simple filing system

Arkansas Government Resources

Official Arkansas resources for contractors

🏛️

Contractors Licensing Board

Contractor licensing and regulation

🏢

Secretary of State

Business entity registration and LLCs

💼

Department of Labor

Workers' compensation and safety oversight

🔥

Fire Marshal's Office

Building codes and fire safety compliance

💰

Dept of Finance

Tax registration and unemployment insurance

🏗️

Economic Development

Business incentives and development programs

Arkansas Trade-Specific Requirements

Different trades may have specific licensing and insurance requirements

Trade Type	License Required	Threshold	Special Requirements
General Contractor	Commercial or Residential	$50,000 / $2,000	$10,000 bond (commercial)
Electrical	Through licensing board	Varies by jurisdiction	May require master electrician
Plumbing	Through licensing board	Varies by jurisdiction	May require master plumber
HVAC	Through licensing board	Varies by jurisdiction	EPA certification for refrigerants
Roofing	General contractor license	$50,000 / $2,000	Same as general contracting

Note: Some trades may have additional local or federal licensing requirements. Always verify current requirements with the Arkansas Contractors Licensing Board.

Arkansas Contractor Bonding Requirements

Arkansas requires surety bonds for commercial contractor licensing. The $10,000 bond requirement protects clients and ensures compliance with licensing standards.

Bonding Requirements

Commercial License:

$10,000 surety bond required

Project-Specific:

May require additional bonding

Performance Bonds:

Required on some contracts

Payment Bonds:

Protects subcontractors and suppliers

Arkansas Environmental Safety Requirements

Arkansas contractors must comply with federal OSHA standards and state environmental regulations including proper handling of hazardous materials and environmental protection.

Key Environmental Compliance Areas

• Federal OSHA safety standards compliance

• Storm water pollution prevention plans

• Asbestos and lead-safe work practices

• Proper waste disposal procedures

• Air quality compliance during construction

• Water protection and runoff management

• Hazardous material handling protocols

• Environmental impact assessments

Arkansas Professional Associations

Industry associations supporting Arkansas contractors

🏗️

AGC Arkansas

Associated General Contractors of Arkansas

🏠

Arkansas Home Builders

Arkansas Home Builders Association

⚡

Arkansas Electrical Contractors

Electrical contractors professional association

🔧

Arkansas Plumbing-Heating-Cooling

PHCC Arkansas mechanical contractors

🏢

Arkansas Roofing Contractors

Arkansas Roofing Contractors Association

🛣️

Arkansas Concrete & Aggregates

Ready mixed concrete and aggregates association

Arkansas Contractor Insurance & Licensing FAQ

Everything you need to know about getting licensed and insured in Arkansas

Arkansas Licensing Requirements

Arkansas Business Formation

Arkansas Insurance Requirements

Arkansas Construction Laws

Arkansas Economic & Industry Information

Still Have Questions?

Our Arkansas contractor insurance specialists are here to help you navigate licensing requirements and find the right coverage for your business.

Get Arkansas Contractor Insurance Today

Serving contractors throughout the Natural State with competitive rates and expert guidance

Contact Our Arkansas Specialists

Phone

1-800-606-2669

arkansas@contractorschoiceagency.com

Business Hours

Monday - Friday: 8:00 AM - 6:00 PM CST

Why Choose CCA for Arkansas?

Arkansas Contractors Licensing Board expertise
Competitive rates for Arkansas contractors
Fast quotes and same-day coverage available
Local knowledge of Arkansas construction industry

Arkansas Coverage Areas

We provide contractor insurance coverage throughout Arkansas's 75 counties and major metropolitan areas, serving the state's growing construction industry.

Major Cities We Serve

Little Rock

Fort Smith

Fayetteville

Springdale

Jonesboro

North Little Rock

Conway

Rogers

Pine Bluff

Bentonville

Hot Springs

Benton

Russellville

Jacksonville

Sherwood

Texarkana

Searcy

Van Buren

El Dorado

Blytheville

All 75 Arkansas Counties

Arkansas County

Ashley County

Baxter County

Benton County

Boone County

Bradley County

Calhoun County

Carroll County

Chicot County

Clark County

Clay County

Cleburne County

Cleveland County

Columbia County

Conway County

Craighead County

Crawford County

Crittenden County

Cross County

Dallas County

Desha County

Drew County

Faulkner County

Franklin County

Fulton County

Garland County

Grant County

Greene County

Hempstead County

Hot Spring County

Howard County

Independence County

Izard County

Jackson County

Jefferson County

Johnson County

Lafayette County

Lawrence County

Lee County

Lincoln County

Little River County

Logan County

Lonoke County

Madison County

Marion County

Miller County

Mississippi County

Monroe County

Montgomery County

Nevada County

Newton County

Ouachita County

Perry County

Phillips County

Pike County

Poinsett County

Polk County

Pope County

Prairie County

Pulaski County

Randolph County

Saline County

Scott County

Searcy County

Sebastian County

Sevier County

Sharp County

St. Francis County

Stone County

Union County

Van Buren County

Washington County

White County

Woodruff County

Yell County

Regional Focus Areas

Central Arkansas

Little Rock, North Little Rock, Conway - Major commercial construction hub

Northwest Arkansas

Fayetteville, Springdale, Rogers, Bentonville - Fast-growing tech and retail corridor

Southwest Arkansas

Fort Smith, Hot Springs, Texarkana - Manufacturing and industrial construction

Arkansas Resources

Featured Arkansas Insurance Guides

Essential insurance information specifically for Arkansas contractors

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Arkansas Roofing Contractor License Bond Requirements and Costs 2025

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Arkansas Contractor Insurance Guide

Complete guide to Arkansas contractor insurance requirements, licensing board compliance, and Natural State construction growth.

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Arkansas Construction Industry Growth

Discover why Arkansas ranks #3 nationally for construction growth and what opportunities await contractors in the Natural State.

View All Arkansas Insurance Articles

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Arkansas Statute of Repose

Arkansas construction liability laws and time limitations for contractor claims

5 Years

Construction Defects

From substantial completion of project

4 Years

Personal Injury

Wrongful death from construction defects

3 Years

Tort Claims

From discovery of defect

Note: Some cases may extend to 7-10 years if defects are not immediately discoverable. Discovery rule may apply in certain circumstances.

Arkansas LLC Formation for Contractors

Arkansas offers one of the most affordable LLC formation processes in the nation at just $45, with straightforward requirements and fast processing times.

LLC Benefits for Arkansas Contractors

• Personal asset protection from business liabilities

• Pass-through taxation avoiding double taxation

• Management flexibility and fewer formalities

• Professional credibility with clients

• Easier access to business banking and credit

• Potential tax advantages for contractors

Trade Type

License Required

Threshold

Special Requirements

General Contractor

Commercial or Residential

$50,000 / $2,000

$10,000 bond (commercial)

Electrical

Through licensing board

Varies by jurisdiction

May require master electrician

Plumbing

Through licensing board

Varies by jurisdiction

May require master plumber

HVAC

Through licensing board

Varies by jurisdiction

EPA certification for refrigerants

Roofing

General contractor license

$50,000 / $2,000

Same as general contracting

Arkansas Contractor Bonding Requirements

Arkansas requires surety bonds for commercial contractor licensing. The $10,000 bond requirement protects clients and ensures compliance with licensing standards.

Bonding Requirements

Commercial License:

$10,000 surety bond required

Project-Specific:

May require additional bonding

Performance Bonds:

Required on some contracts

Payment Bonds:

Protects subcontractors and suppliers

Arkansas Environmental Safety Requirements

Arkansas contractors must comply with federal OSHA standards and state environmental regulations including proper handling of hazardous materials and environmental protection.

Key Environmental Compliance Areas

• Federal OSHA safety standards compliance

• Storm water pollution prevention plans

• Asbestos and lead-safe work practices

• Proper waste disposal procedures

• Air quality compliance during construction

• Water protection and runoff management

• Hazardous material handling protocols

• Environmental impact assessments