More than half of all Alaskans work for nearly 75,000 small businesses based in the state. These 138,000 workers depend on their employers to help protect their livelihoods.1
That’s why the owners of Alaska’s small companies need business insurance. It can help cover expenses and keep businesses up and running after unforeseen events, such as:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.*
Continue reading to learn about important types of business insurance in Alaska. Or get a free instant quote to see customized coverage options for your business.
Alaska business insurance typically comes in customized packages with several different types of coverage, which insurance companies call policies. Each type of coverage can provide assistance when different types of accidents happen.
For example, general liability insurance can help protect against financial losses if you’re accused of causing bodily injury to a non-employee or damaging their property. Whereas, if one of your employees gets hurt on the job, you would need Alaska workers’ compensation coverage.
Other types of business insurance coverage purchased in the state of Alaska include professional liability coverage, commercial auto insurance and business property insurance.
Whether you’ll want some or all of these types of coverage will depend on your business operations. Every small business is unique and has different business insurance requirements.
Alaska general liability insurance, which may also be called commercial general liability, can protect almost all businesses in Alaska.
This type of insurance can help pay for expenses if your business is accused of injuring a non-employee or causing property damage. It can also help pay legal costs fees if someone sues your business for such claims.
For example, an Anchorage homeowner claims that a plumbing company damaged a hardwood floor while repairing a sink. General liability insurance could help the plumbers pay to replace the client’s floor.
Cleaning and construction companies in Alaska may want to include optional tools and equipment coverage with their policy. It can help repair or replace work gear that is lost, stolen or damaged outside of normal wear and tear.
Keep in mind that many commercial landlords and clients will require proof of business liability insurance before they’ll sign a contract with your business.
State law requires almost all businesses with employees to carry Alaska workers’ compensation insurance. If employees are injured or become sick on the job, this type of coverage can help pay for medical care and lost wages if they’re unable to work.
For instance, a worker at a Fairbanks construction company is hurt by a falling object at a job site, needs an ambulance and stays in the hospital overnight. Workers’ comp coverage could help pay for the employee’s medical expenses and help cover lost wages while they’re recovering and unable to do their job.
If your business involves driving, your Alaska insurance needs should include commercial auto insurance. That’s because personal auto policies won’t cover damages from accidents that happen while behind the wheel for work purposes.
Commercial auto coverage can help pay for property damage and medical bills after a situation such as this:
An electrician based in Homer has a fender bender in a company van while leaving a job site, smashing his vehicle and another. Commercial auto insurance could help pay to repair the auto damage. If anyone is hurt, coverage could also help cover medical costs.
Hired and non-owned auto coverage is an optional add-on to commercial auto. It can help cover accident damages If you ask employees to rent vehicles or drive their personal autos for business.
Alaska commercial property insurance, sometimes called business property insurance, can help pay for business property that’s damaged or destroyed after a covered event, such as water, fire or wind incidents.
For example, a kitchen fire at a Ketchikan casual dining restaurant damages the cooking station. Commercial property coverage could help pay to repair the grill and replace cookware that was ruined.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Many carriers don’t cover flood and hurricane damage.
If a client claims that your business’s actions caused monetary losses, you could be held responsible for damages. That’s why business insurance packages in Alaska often include professional liability insurance.
Also called errors and omissions coverage (E&O), this type of insurance can help pay for damages after accusations of poor work, missed deadlines or incomplete jobs. It can also help pay for legal defense fees if you’re sued.
For example, a software engineer in Juneau is under contract to build an e-commerce website for a small retail store. The client says that the site doesn’t work according to the terms of the contract and files a lawsuit for lost revenue and the cost to fix the bugs.
E&O coverage could help the software engineer pay attorney fees, court costs and any damages for which they’re held responsible.
Your business insurance cost depends on your profession, your employment practices and other factors. That means your business insurance premiums may be different from those of the Alaska business right next door to you.
Here are some of the things insurance providers look at when preparing your estimate:
The amount of risk your business faces each day will impact your insurance costs. For example, Alaska-based restaurants, which are more likely to experience an injury or property damage, may pay more than professional services businesses, where customers are less likely to get hurt.
Business insurance will cost more as you add policies to your coverage package. Most businesses need more than one type of policy to protect them across different situations.
Workers’ comp insurance pricing is based on your employee headcount. It’s important to have your exact full-time and part-time worker count when you request a quote.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Alaska:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
Learn more about insurance options in the states where you work.