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Alaska workers' compensation insurance:: Your guide to requirements and getting a policy
The Alaska Workers’ Compensation Act generally requires employers with one or more employees in Alaska to maintain workers’ compensation coverage, unless approved as a self-insurer by the Alaska Workers’ Compensation Board. Part-time and temporary employees also count — if a worker does not fall within a statutory exemption (or meet the state’s independent contractor criteria), they must be insured.
Workers’ compensation is often referred to as a safety net, because it provides partial income replacement to employees who get sick or injured while at work (and need time to recover). Furthermore, coverage also has benefits for employers. In most cases, employees cannot sue their employers for damages related to their injuries or illnesses if they are covered by workers’ compensation.
The Alaska Workers’ Compensation Act requires each employer with one or more employees in Alaska to obtain workers’ compensation insurance, with a few exceptions.
Even if you employ family and friends, or occasionally have “volunteers” who complete tasks, there are no exemptions for these individuals in for-profit businesses. All individuals performing work who are not legally named as owners with adequate ownership interest, and who are not bona fide independent contractors, must be insured.
Yes, but they are based on type of work performed or employee classification, not business type. According to the Alaska Department of Labor, examples include:
Part-time baby-sitters
Non-commercial cleaning persons
Seasonal harvest help and similar part-time/transient help
Amateur sports officials
Contract entertainers
Commercial fishers (AS 16.05.940)
Specific taxicab drivers
Participants in Alaska’s temporary assistance program (AS 47.27.035)
Professional hockey players and coaches covered under health care plans
Qualified real estate licensees
Transportation network company (rideshare) drivers who transport passengers (this does not include couriers, personal shoppers, or food delivery drivers)
There are also exemptions for certain owners and executives:
Sole proprietors
Business partners
LLC members with at least 10% ownership
Executive officers of for-profit corporations with at least 10% ownership
Yes. Employers who fail to maintain required workers’ compensation coverage may face enforcement actions and civil penalties. Alaska guidance notes that employers can be penalized between $10 and $1,000 per employee for each day employees worked during lapses in coverage. Employers may also be served with a stop-work order for failing or refusing to insure employees — and continuing to utilize employee labor after service of a stop-work order can result in an additional $1,000 per day penalty for each day of violation.
Also note: employers may not charge employees for any portion of workers’ compensation premiums — Alaska treats this as a misdemeanor.
Yes, and they can be severe:
Fines between $10 and $1,000 per employee, per day without coverage
Stop work orders for noncompliance
A $1,000 per day penalty for continuing to operate after a stop work order
Employers cannot pass policy costs to employees — doing so is a misdemeanor
In Alaska, workers’ compensation coverage is obtained through the voluntary commercial market or the involuntary market (Assigned Risk). Alaska does not operate a state fund, so most employers work with an insurance agent/broker or contact an authorized carrier directly.
If you’re unable to obtain coverage through a commercial carrier, you may purchase insurance through Alaska’s Assigned Risk Pool, administered by NCCI (800-622-4123).
Not only is having workers’ comp required by law—it’s a smart move for your business. With coverage in place, employers and employees alike can enjoy peace of mind knowing they’re protected if an incident occurs.
Have questions? Reach out to Beyond and let us help you find the right policy for your business.
