Common Insurance Gaps in Arkansas Small Businesses

Arkansas small business owner reviewing insurance coverage to identify common coverage gaps.”

If you’re a small business owner in Arkansas, chances are you juggle a dozen different roles every single day—CEO, bookkeeper, sales manager, HR department, social media team, and even the occasional IT support.

And somewhere near the bottom of that overflowing to-do list sits a task most business owners dread:
Figuring out your insurance coverage.

Here’s the surprise: even the most organized, checklist-loving entrepreneurs often miss major coverage gaps—and those gaps can cost thousands when a claim happens.

At G&G Independent Insurance, we help business owners compare coverage from 50+ carriers, so we see these issues all the time. The good news? These gaps are predictable, preventable, and fixable once you know what to look for.

Let’s walk through the most common coverage oversights in Arkansas small businesses—and how to protect your operation before the unexpected hits.

1. General Liability Gaps: “It’s Just the Basics… Right?”

General liability is the go-to starter policy for small businesses, but many owners assume it covers everything. Spoiler alert: it doesn’t.

Common general liability gaps include:

  • Damage to the property you rent
  • Errors made by subcontractors
  • Advertising or digital content risks
  • Product-related injuries after a sale

These may seem minor, but they can quickly turn into expensive surprises.

For a detailed breakdown, refer to our comprehensive guide on general liability insurance in Arkansas.

Does general liability insurance cover everything?
Nope. Think of it as the “front porch light”—important, helpful, but not the whole house.

Arkansas business owners discussing overlooked insurance protections and common coverage gaps.

2. Workers’ Compensation Confusion: “Do I Really Need It?”

Arkansas law requires workers’ comp for most businesses with employees—but many business owners assume:

  • “I only have part-time staff.”
  • “My workers are contractors.”
  • “We aren’t in a dangerous industry.”

However, workplace injuries happen everywhere. Even office-based businesses deal with slips, carpal tunnel injuries, and freak coffee machine explosions. (Yes, it’s happened.)

If you’re not sure what qualifies as an employee or what’s required, our resource on Workers’ Compensation Insurance in Arkansas.

Missing workers’ comp isn’t just risky. It can lead to fines and uncovered medical bills. Ouch.

3. Property Insurance Gaps: “My Business Isn’t Big Enough to Need That.”

Your business property includes more than your building. It covers:

  • Inventory
  • Tools
  • Electronics
  • Equipment
  • Furniture

But one of the biggest business insurance coverage gaps we see is under-insuring property—or forgetting property coverage completely.

Many small businesses are shocked to find that:

  • Their policy doesn’t cover off-site equipment
  • They only insure the building, not the contents
  • Their coverage amount doesn’t match today’s replacement costs

A quick annual review of Commercial Property Insurance in Arkansas can help prevent expensive surprises.

4. Commercial Auto vs. Personal Auto: “My Truck Is Mine… But I Also Use It for Work.”

This is a huge gap for contractors, real estate agents, delivery businesses, and service companies.

What’s the difference between commercial auto and personal auto?

Here’s the quick version:

  • If you use your vehicle for business (hauling equipment, deliveries, employee use), → you need commercial auto.
  • If employees drive your personal car for work errands, → you definitely need commercial auto.

Personal policies rarely pay out for work-related accidents—and that’s a costly misunderstanding.

You can learn what counts as “business use” in our guide to Commercial Auto Insurance in Arkansas.

5. Professional Liability: “I Don’t Really Give Advice… Do I?”

If your business uses expertise to provide:

  • Recommendations
  • Services
  • Designs
  • Guidance
  • Technical or professional work

Industries that commonly need it include contractors, consultants, bookkeepers, designers, real estate agents, fitness coaches, IT professionals, and more.

One small mistake or miscommunication can create a costly claim.

6. Cyber Liability: “We’re Too Small to Get Hacked.”

Many small businesses believe hackers only target big companies.

In reality, 46% of cyber attacks happen to small businesses.
And the average cost of a small business cyber claim? Over $25,000.

From phishing scams to stolen customer data, cyber insurance is no longer optional—it’s a seatbelt.

Is cyber insurance necessary for small businesses?
 Short answer: Yes. Especially in an era where even scheduling an appointment requires online forms.

Consider adding cyber liability if you store:

  • Customer data
  • Payments
  • Appointments
  • Digital files
  • Employee information

7. Business Interruption Gaps: “My Property Is Covered—Isn’t That Enough?”

After a fire, storm, or major damage, property insurance repairs the physical building… but business interruption insurance protects your income.

Many commercial insurance policies don’t include:

  • Lost revenue
  • Temporary relocation costs
  • Payroll continuation
  • Supply-chain disruptions

This gap can shut down a business even if the building is repairable.

8. Outdated Policies: “I Haven’t Reviewed My Policy Since… Whenever.”

One of the most common gaps isn’t a coverage—it’s neglect.

When should I update my business insurance policy?
 At least once a year, but also when you:

  • Hire or fire employees
  • Add new vehicles
  • Move locations
  • Increase inventory
  • Add services
  • Buy new equipment
  • Bring on subcontractors

G&G makes this easy by comparing coverage and pricing from 50+ carriers.

How Much Insurance Does an Arkansas Small Business Need?

It depends on:

  • Industry risk
  • Number of employees
  • Property value
  • Vehicles
  • Customer volume
  • Inventory levels

But as a baseline, most Arkansas businesses should consider:

  • General liability
  • Commercial property coverage
  • Workers’ comp
  • Commercial auto (if applicable)
  • Professional liability
  • Cyber insurance

You can explore all available protections through our Arkansas Business Insurance Options page.

Protect Your Arkansas Business Before the Unexpected Hits

You work hard. You build, deliver, create, solve problems, and serve your customers every single day. Your insurance should work just as hard for you.

At G&G Independent Insurance, we help Arkansas business owners uncover risks, close coverage gaps, and compare prices from 50+ carriers—so you can focus on what you do best.

Protect your operation from hidden risks. Get a free quote today.