New rules for residential contractors in Ark.

All must show proof of workers’ comp insurance

Residential contractors in Arkansas who own their own businesses may opt out of workers’ compensation coverage for themselves, but must purchase it for their business, according to a bulletin recently issued by state regulators. According to new rules under Act 398 of 2007, “residential contractors must provide proof of workers’ compensation coverage as a condition of licensure or renewal of an existing license.”

A bulletin jointly released by the Arkansas Workers’ Comp-ensation Commission, the Arkansas Insurance Department and the Arkansas Contractors Licensing Board clarified that, “A residential contractor who is a sole proprietor, partner of a partnership, member of a limited liability company, member of a professional association, a self-employed employer, or an officer of a corporation may purchase a workers’ compensation policy and exclude himself or herself from coverage through the insurance contract. The exclusion request must be signed and dated by the person requesting to be excluded and must be submitted to the insurance company at the inception of the policy.”

All business owners who opt to exclude themselves must hold a Certificate of Non-Coverage. The agencies emphasized that a “Certificate of Non-Coverage is not and cannot be used as a waiver of workers’ compensation liability.” According to the bulletin, a contractor/business owner must at least purchase a “minimum premium policy,” even if the owner chooses a self-exclusion and has no employees.

For more information visit the AWCC Web site at www.awcc.state.ar.us/news.html.

Topics Workers' Compensation Contractors Arkansas Alaska