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Alaska Workers’ Compensation Insurance

You can save up to 25% in discounts on business insurance.*

Workers’ Compensation can help pay for:

Medical expenses

Medical expenses

Includes examinations, treatments and rehabilitation.

Lost wages

Lost wages

Gives employees time to recover from an injury before returning to work.

Retraining

Retraining

Helps employees who need to learn skills and enter a new field.

Permanent injury

Permanent injury

Provides benefits for employees who can no longer work due to injury.

Is Workers’ Compensation insurance required in Alaska?

All businesses in Alaska with employees must have workers’ compensation insurance.1

Part-time and temporary employees must be included in a business’s workers’ comp coverage. However, coverage requirements do not apply to independent contractors and volunteers.

Getting workers’ comp coverage is important for two reasons. First, it’s required under the Alaska Workers’ Compensation Act. And second, workman’s comp insurance helps pay for a number of costs related to workplace injuries, such as:

  • Emergency treatment
  • Medical bills
  • Lost wages
  • Death benefits

Who is exempt from Workers’ compensation insurance in Alaska?

No businesses are exempt from the workers’ compensation requirements. However, certain business owners and executives do not have to obtain Alaska workers’ comp insurance for themselves, such as:

  • Sole proprietors
  • Partners in a partnership
  • Limited liability company members with a minimum 10% ownership interest
  • Executive officers of for-profit corporations with a minimum 10% ownership interest
  • Executive officers of nonprofit corporations

These business owners still need to have Alaska workers’ comp coverage for any workers they employ. If you work as an independent contractor, some clients may also ask you to have coverage.

Even if you work for yourself, you might still want workers’ comp as it covers lost wages and medical bills after a workplace accident. Your personal healthcare insurance might not cover you.

There are a handful of other exceptions to the workers’ compensation requirements that are determined by specific employment circumstances, including:

  • Part-time babysitters
  • Residential cleaning persons
  • Sports officials
  • Some taxi cab drivers
  • Real estate agents

Self-insurance for Alaska workers’ compensation

Employers have the option to self-insure their workers instead of obtaining a workers’ compensation policy. In order to do this, they must undergo a qualification process through the Alaska Workers’ Compensation Board.2

To obtain a Certificate of Self-Insurance for workers’ compensation, Alaska businesses must meet a number of requirements, including:

  • At least five years operating as a business in Alaska
  • 100 or more employees
  • Net worth of $10 million or more

Companies may submit an application if they meet the conditions for qualification. The application must include detailed documents and monetary commitments.

How does workers’ comp work in Alaska?

Workers’ compensation insurance helps pay for the costs of work-related injuries to employees and covered business owners, such as:

  • Medical expenses
  • Loss of income
  • Retraining
  • Permanent injury
  • Survivor benefits

For example, let’s say you own a cleaning company and one of your workers slips on a wet floor and injures their back. Workers’ compensation coverage could help pay for medical care, lost wages while recovering and even travel to and from medical treatments if necessary.

Workers’ comp income benefits in Alaska

There are four main categories for workers’ compensation income benefits in Alaska:3

Temporary partial disability

The employee is unable to earn their full regular wage while recovering, but is still able to work in a different and/or reduced capacity.

Temporary total disability

The employee is unable to work for a certain period of time due to their injury.

Permanent partial impairment

The employee sustains a permanent impairment and compensation is determined by a doctor’s impairment rating.

Permanent total disability

The employee’s injury limits their ability to perform any type of work on a consistent basis.

Additionally, death benefits apply when an employee dies as a result of a work-related injury or illness. This may include coverage for funeral benefits and monthly payments to a spouse and dependents.

Employer responsibilities for workers’ compensation insurance

In addition to obtaining workers’ compensation coverage for all employees, the Alaska Division of Workers’ Compensation requires employers to do the following:

  • Post notices of insurance for employees
  • Report employee injuries sustained in the workplace within 10 days
  • Pay for compensable occupational injury claims
  • Comply with workers’ compensation laws for any other states or countries where employees are sent to work

Alaska Workers’ Compensation insurance reciprocity

This state does not accept policies from other states to fulfill the requirement for workers’ comp. Alaska businesses must be insured by an in-state policy.

Out-of-state and foreign employers must obtain coverage for any labor that occurs in Alaska. All policies must be written by an insurer licensed by the Alaska Division of Insurance.

Workers’ Compensation laws for subcontractors

All contracting businesses must make sure any subcontractors working for them have satisfactory workers’ comp insurance. If a subcontractor is not insured, additional premiums can be added to the contractor’s policy to ensure coverage.

Ultimately, it’s the responsibility of the contracting business to make sure that all their subcontractors have the proper insurance.

If you want to minimize your liability, you can require all subcontractors to provide proof of insurance and hold on to those documents in case of an audit.

Are there penalties for not having Workers’ Comp coverage?

If your business fails or refuses to obtain the proper worker’s compensation insurance, you could be served with a stop work order.

A mandatory penalty of $1,000 per day applies if you violate the stop work order. Additional penalties of $10 to $1,000 per employee per day could be added to that fine.

The statute of limitations extends through the previous six years. That means your business could be penalized for lapses in coverage at any time during those six years.

Your business is at serious financial risk if an employee injury occurs while you’re uninsured. The injured worker can file a claim against you and the Alaska Division of Workers’ Compensation Benefits Guaranty Fund.

If the employer fails to pay, this fund covers the injury-related costs and then aggressively pursues full reimbursement from the responsible employer.

What are the rates for Workers’ Compensation in Alaska?

Rates for workers’ comp vary based on a number of factors. When determining the premiums for workers’ compensation insurance, insurers consider the following:

  • The risk of job-related injuries
  • Where you do business
  • Your insurance claims history
  • How many employees you have

How NEXT Insurance helps Alaska businesses

NEXT specializes in small business insurance and can help make sure you get the right coverage to satisfy Alaska workers’ compensation laws.

It only takes about 10 minutes to answer a few questions, review coverage options, purchase insurance and get your certificate of insurance.

If you need help at any point along the way, our team of U.S-based, licensed insurance advisors is ready to assist you.

Start a free instant quote with NEXT online today.

Other important business insurance policies in Alaska

In addition to workers’ compensation, Alaska businesses generally need a few other types of insurance in their insurance package, including:
We typically recommend:
General Liability
General Liability Insurance

General liability insurance offers protection for common accidents and mistakes on the job, like property damage or customer injuries.



Commercial Auto
Commercial Auto insurance

Commercial auto insurance provides coverage if you or your employees are involved in an accident in a business-owned vehicle. It can also provide coverage for accidents in your personal vehicle while being used for work-related purposes.



Errors & Omissions
Professional Liability insurance (E&O insurance)

If you or an employee makes a mistake at work or a customer makes a claim against you, professional liability insurance provides the financial protection you need to defend yourself.



Customer reviews

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.

Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability insurance
General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance
Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers' Compensation Insurance
Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto Insurance
Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment Insurance
Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property Insurance
Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy Insurance
Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.