If you’re a licensed professional in Arkansas—such as a nurse, attorney, or contractor—having the right coverage isn’t just smart. In many fields, it’s a legal or contractual requirement. One mistake could lead to a costly lawsuit, even if you didn’t do anything wrong.
This guide breaks down who needs Arkansas professional liability insurance, what it covers, how much it costs, and how to respond if you face a claim.
Who Needs Coverage in Arkansas?
Not all professions require it by law, but many do—or are strongly encouraged to carry it under Arkansas PLI requirements. Some industries face stricter rules than others:
Healthcare Providers: While Arkansas doesn’t mandate malpractice insurance for licensing, most hospitals and healthcare facilities require coverage for employment and admitting privileges.
Attorneys: Professional liability insurance is available and may be required by some employers or client contracts.
Home Inspectors: Under House Bill 1625 (Act 974), effective August 5, 2025. Arkansas requires home inspectors to carry either professional liability insurance or errors and omissions insurance.
Consultants & Advisors: Those in agriculture, marketing, or business often need it to fulfill client contract clauses.
Engineers & Contractors: Often need proof of coverage because of the risk of project errors, design flaws, or job site delays.
If you’re in a regulated industry or work with government agencies or large clients, not having coverage can mean lost business—or legal penalties.
What It Covers and Why It Matters
Arkansas professional liability insurance protects your business when a client accuses you of negligence, a mistake, or a failure to perform. It helps pay for legal fees, settlements, and damages—even if you’re not at fault.
Coverage usually includes:
Legal Defense Costs: Attorney fees, court expenses, and expert witness bills.
Judgments or Settlements: Pays if a lawsuit results in damages against you.
Error & Omission Protection: Covers mistakes like bad advice, missed deadlines, or technical errors that cause financial harm.
Reputation Boost: Clients often feel more secure working with a professional who carries insurance.
Having Arkansas E&O coverage makes you more competitive—and compliant.
How Much Does It Cost in Arkansas?
Your premium depends on:
- Profession and services provided
- Coverage limits ($100K vs $1M)
- Location (rural vs urban)
- Claims history
- Revenue and staff size
Note: Arkansas law requires specific advance notice for significant premium increases on professional liability insurance. For increases of 25% or more, insurers must provide at least 30 days’ notice to policyholders and 60 days’ notice to agents.
Many professionals confuse liability policies with workers’ comp. Our guide on whether workers’ compensation is the same as liability insurance explains the differences and why both may be essential.
What Happens If You Get Sued?
If someone files—or threatens to file—a claim, act fast. Your policy has strict timelines. Missing them can void your coverage.
Here’s what to do:
- Notify your insurer immediately. Even if it’s just a warning letter, report it.
- Provide documents. Contracts, emails, inspection reports, medical charts—submit it all.
- Let the insurer investigate. They’ll assign lawyers and look at evidence.
- Stay involved. Some claims go to mediation. Others go to trial. The carrier handles the legal side—but you’ll still need to participate.
- Expect payout timelines. Once settled the timeframe for payouts can vary depending on the complexity of the case and the specifics of the settlement agreement.
Bottom Line: Why You Need It Now
Professional liability insurance protects your livelihood. Whether you inspect homes, provide care, or offer advice—Arkansas professional liability insurance keeps you covered when someone claims you made a costly mistake.
Here’s what to do next:
Check your profession’s Arkansas PLI requirements
Review contracts for mandatory coverage clauses
Speak to an expert today: 855-718-7552
Don’t wait for a lawsuit. Get covered now—and keep your business protected.
