Alabama workers' compensation insurance: Your guide to requirements and getting a policy
Alaska workers’ compensation is a topic business owners in the state should get familiar with because it’s required for almost all AK employers. That said, keeping track of all the requirements can be a little tricky. In this guide, Beyond covers the basics of who should receive coverage, what exceptions exist, and how businesses can obtain a policy.
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 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. According to the state, employers of domestic employees, farm laborers, and casual employees are not required to provide coverage—but they may choose to opt in.
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
You have options:
Purchase from a private carrier
Use an insurance agent or broker, or request a quote directly from a carrier authorized by the Alaska Division of Insurance.
Use the Alaska Assigned Risk Pool
If traditional coverage is unavailable (for high-risk businesses), employers can access Alaska’s Assigned Risk Pool, managed by the National Council on Compensation Insurance (NCCI).
Visit ncci.com or call 800-622-4123.
Need help? The Beyond team is here to assist you in navigating your options.
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.
