May 23, 2025

What Is Insurance Coverage and Insurance Defense Law in Arkansas?

Article Summary:

Learn what insurance coverage and insurance defense law means in Arkansas. Understand your rights in liability claims, bad faith, and coverage disputes.

Legal Topics

EMPLOYMENT LAW UPDATE: FEDERAL TRADE COMMISSION ELIMINATES NON-COMPETE CLAUSES

On Tuesday, the Federal Trade Commission issued a new Rule putting an end to employment-related non-compete clauses. In its justification for the rule, the FTC called non-compete clauses “an unfair method of competition” and stated it is a “violation for [employers] to… enter into non-compete clauses (“non-competes”) with workers.” In today’s very competitive labor market, the new FTC Rule creates a significant disruption for employers.

WHEN IS THE FTC ELIMINATION OF NON-COMPETE CLAUSES SET TO TAKE EFFECT?

This new FTC provision—set to take effect in 120 days—renders existing non-compete agreements unenforceable. Existing non-compete agreements with senior executives will remain enforceable, although employers cannot require newly hired senior executives to sign such an agreement.

WHAT REQUIREMENTS HAS THE FTC IMPOSED ON EMPLOYERS BY ELIMINATING NON-COMPETE CLAUSES?

After the Rule takes effect, employers are required to deliver personal notice to employees (past and present) who signed a non-compete agreement informing them agreements are no longer enforceable. In the notice, employers must inform employees they are free to accept any job or start any business, even if it is directly competitive with the employer.

IS THE FTC’S ELIMINATION OF THE NON-COMPETE CLAUSES OPTIONAL FOR EMPLOYERS?

Compliance with the FTC Rule is not optional. Employers should consider new ways they can protect against a former employee gaining a competitive advantage by using the employer- provided training, the relationships made possible by the employer, or the confidential information learned from the employer. RMP can assist you in navigating this disruption and can provide advice on how to most effectively protect your vital business interests going forward.

RMP: Your Employment Law Attorneys

RMP Attorneys At Law has an experienced Employment Law Attorney team dedicated to helping you navigate these changes. If you have any questions or would like guidance, reach out to one of our employment attorneys, Tim Hutchinson, Seth Haines, Larry McCredy, or Taylor Baltz or call  479.443.2705.

Understanding Your Rights and Responsibilities as an Insurer or Policyholder in Arkansas

Insurance plays a critical role in modern life—whether you're a business owner, a homeowner, or a healthcare provider. Understanding the difference between insurance coverage and insurance defense law becomes essential when disputes arise.

In Arkansas, these legal areas govern how insurers and policyholders navigate everything from policy interpretation to litigation defense. This guide will help you understand what these terms mean, how they apply under Arkansas law, and what to do when a coverage dispute or liability claim arises.

Gavel next to a certificate of insurance with a pen on top in a court focusing on insurance coverage law.

What Is Insurance Coverage Law?

Insurance coverage law addresses the rights and obligations between an insurance company and its policyholders. It typically involves interpreting whether a specific claim or event is covered under the terms of an insurance policy.

Key Issues in Coverage Law:

  • Policy interpretation (ambiguous terms, exclusions)
  • Coverage disputes (denial of claims, partial payments)
  • Duty to defend vs. duty to indemnify
  • Bad faith claims handling
  • Declaratory judgment actions

In Arkansas, insurance policies are interpreted under contract law principles, meaning the court will often favor the "plain meaning" of the policy language. However, if the language is ambiguous, courts may interpret the ambiguity in favor of the insured.

What Is Insurance Defense Law?

Insurance defense law involves defending an individual or entity (usually the insured) in a lawsuit—typically one that alleges bodily injury, property damage, or other liability claims covered by insurance.

This type of law becomes relevant when:

  • A policyholder is sued for negligence (e.g., in a car accident or slip-and-fall case);
  • and/or the insurance company hires a defense lawyer to protect the insured's legal interests.

The insurer is often obligated to provide a legal defense and potentially cover judgments or settlements if the claim is within policy limits and terms.


Contact RMP Law Today

Main RMP Number: 479-443-2705

Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000

Message Us


Common Types of Policies Involved:

  • Auto insurance (liability, uninsured motorist, PIP)
  • General commercial liability (GCL)
  • Homeowners' policies
  • Professional liability (e.g., malpractice)
  • Workers' compensation
  • Cyber liability (increasingly relevant for businesses)

The Role of Insurance Defense Attorneys

Insurance defense lawyers in Arkansas typically:

  • Represent the insured party in civil litigation;
  • Liaise between the insurer and the policyholder;
  • Advise on risk, liability exposure, and settlement options;
  • and ensure legal compliance with Arkansas Rules of Civil Procedure.

They're often part of law firms that specialize in civil litigation and are retained by insurance companies, but owe duties to the insured as their client.

What to Do in a Coverage Dispute in Arkansas

For Policyholders:

  • Review your policy in detail. Identify coverage limits, exclusions, and notification requirements.
  • Document everything—communications, photos, repair estimates.
  • Respond promptly to insurer communications.

Consult an insurance coverage attorney if your claim is denied or undervalued.

Expert Insurance Coverage and Defense Representation in Arkansas

When dealing with insurance coverage disputes or liability claims in Arkansas, it's crucial to have knowledgeable and experienced legal counsel on your side. At RMP Law, we specialize in insurance coverage and insurance defense law, committed to protecting your rights and achieving the best possible outcome. Contact RMP Law today to schedule your consultation and let us help navigate your insurance law concerns confidently and effectively.

Let RMP Law be your trusted legal partner, providing the guidance and advocacy you need to succeed. Contact us today! 

Main RMP Number: 479-443-2705

Understanding Your Rights and Responsibilities as an Insurer or Policyholder in Arkansas

Insurance plays a critical role in modern life—whether you're a business owner, a homeowner, or a healthcare provider. Understanding the difference between insurance coverage and insurance defense law becomes essential when disputes arise.

In Arkansas, these legal areas govern how insurers and policyholders navigate everything from policy interpretation to litigation defense. This guide will help you understand what these terms mean, how they apply under Arkansas law, and what to do when a coverage dispute or liability claim arises.

Gavel next to a certificate of insurance with a pen on top in a court focusing on insurance coverage law.

What Is Insurance Coverage Law?

Insurance coverage law addresses the rights and obligations between an insurance company and its policyholders. It typically involves interpreting whether a specific claim or event is covered under the terms of an insurance policy.

Key Issues in Coverage Law:

  • Policy interpretation (ambiguous terms, exclusions)
  • Coverage disputes (denial of claims, partial payments)
  • Duty to defend vs. duty to indemnify
  • Bad faith claims handling
  • Declaratory judgment actions

In Arkansas, insurance policies are interpreted under contract law principles, meaning the court will often favor the "plain meaning" of the policy language. However, if the language is ambiguous, courts may interpret the ambiguity in favor of the insured.

What Is Insurance Defense Law?

Insurance defense law involves defending an individual or entity (usually the insured) in a lawsuit—typically one that alleges bodily injury, property damage, or other liability claims covered by insurance.

This type of law becomes relevant when:

  • A policyholder is sued for negligence (e.g., in a car accident or slip-and-fall case);
  • and/or the insurance company hires a defense lawyer to protect the insured's legal interests.

The insurer is often obligated to provide a legal defense and potentially cover judgments or settlements if the claim is within policy limits and terms.


Contact RMP Law Today

Main RMP Number: 479-443-2705

Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000

Message Us


Common Types of Policies Involved:

  • Auto insurance (liability, uninsured motorist, PIP)
  • General commercial liability (GCL)
  • Homeowners' policies
  • Professional liability (e.g., malpractice)
  • Workers' compensation
  • Cyber liability (increasingly relevant for businesses)

The Role of Insurance Defense Attorneys

Insurance defense lawyers in Arkansas typically:

  • Represent the insured party in civil litigation;
  • Liaise between the insurer and the policyholder;
  • Advise on risk, liability exposure, and settlement options;
  • and ensure legal compliance with Arkansas Rules of Civil Procedure.

They're often part of law firms that specialize in civil litigation and are retained by insurance companies, but owe duties to the insured as their client.

What to Do in a Coverage Dispute in Arkansas

For Policyholders:

  • Review your policy in detail. Identify coverage limits, exclusions, and notification requirements.
  • Document everything—communications, photos, repair estimates.
  • Respond promptly to insurer communications.

Consult an insurance coverage attorney if your claim is denied or undervalued.

Expert Insurance Coverage and Defense Representation in Arkansas

When dealing with insurance coverage disputes or liability claims in Arkansas, it's crucial to have knowledgeable and experienced legal counsel on your side. At RMP Law, we specialize in insurance coverage and insurance defense law, committed to protecting your rights and achieving the best possible outcome. Contact RMP Law today to schedule your consultation and let us help navigate your insurance law concerns confidently and effectively.

Let RMP Law be your trusted legal partner, providing the guidance and advocacy you need to succeed. Contact us today! 

Main RMP Number: 479-443-2705

Who Is RMP Law?

Thorough & Caring

RMP specializes in tackling complex legal problems with compassion and understanding.

Award-Winning

Nationally recognized and awarded for our work on complex estate planning and litigation.

Proven History

RMP has a history of proven results in significant matters across many areas of the law

Let Arkansas-Based Lawyers Help 

RMP Law is here to help

JOHNSON
5519 Hackett Street, Suite 300
Springdale, AR 72762

BENTONVILLE
809 SW A Street, Suite 105
Bentonville, AR 72712

JONESBORO
710 Windover Road, Suite B
Jonesboro, AR 72401

LITTLE ROCK
11601 Pleasant Ridge, #301,
Little Rock, AR 72212

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