The A-Z guide to Alaska Workers' Comp

Alaska Workers’ Compensation

Name: Workers' Compensation Insurance for Alaska
Brand: Kickstand Insurance
Rating: 5 (37 reviews)

Alaska workers’ compensation is designed to protect employees and employers under the Alaska Workers’ Compensation Act. The Act provides medical, disability, and financial benefits for injured individuals. Death benefits are often included in workers’ compensation agreements in Alaska as well.

Keep reading to learn about Alaska workers’ comp insurance laws and their implications for employers and employees.

Required with

1 employee

All employees, including part-time, full-time, and seasonal workers need to be covered by a policy.

The following are exempt:

part-time babysitters
non-commercial cleaning persons
harvest and part-time farm helpers
contract entertainers
taxicab drivers

Is workers’ comp insurance required in Alaska?

Workers’ comp insurance is required in Alaska for employers with at least one employee. Part-time, full-time, and seasonal workers are covered with medical, disability, death, and re-employment benefits, enabling workers to seek financial care for work-related injuries or illnesses.

These laws are designed to give injured workers the support they need while helping employers maintain fair practices in the workplace.

Do you need workers’ compensation coverage if you’re self-employed?

For self-employed workers, including partnerships and sole proprietors, Alaska workers' compensation insurance isn't required. However, if a self-employed worker builds a business, they must provide workers’ compensation insurance for their employees.

Individuals and co-op workers can get themselves a policy if they would like the protection it offers. This primarily benefits self-employed workers who do hazardous contract work, like construction.

Who is exempt from Alaska workers’ comp requirements?

The following types of workers are exempt from the workers comp rules in Alaska; part-time babysitters, non-commercial cleaning persons, harvest and part-time farm helpers, contract entertainers, and taxicab drivers are exempt from Alaska workers’ compensation laws.

How much is workers’ comp coverage in Alaska?

Your Alaska workers’ comp rate will depend on the following factors:

The type of business you have
The size of your payroll
Your safety record
Claim history

How can Alaska small business owners save money on workers' comp?

Small business owners can save money on Alaska workers’ comp insurance by doing the following:

Create a safety program with regular training and audits to inform workers about safety protocols. Use incentives to reward a safe workplace.
Help employees return to work with a return-to-work program featuring lighter, less strenuous duties. Encourage a gradual return, allowing an employee to work at a pace they are comfortable with.
Correctly classify employees under defined roles based on their duties and risks.
Encourage employees to stretch, move around, take breaks, and promote a healthy work environment. Provide wellness and mental health resources to reduce the risk of workplace burnout or stress-related injuries or illnesses.
Be prompt and consistent when filing injury or illness claims for employees. Work closely and honestly with an insurance provider to quickly manage and resolve claims.

Education is essential in the workplace. Teach employees the correct way to report injuries and illnesses while educating everyone on preventative measures to avoid common accidents.

A cautious workplace that prioritizes safety is the best way for small business owners to save money on Alaska workers’ comp insurance.

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How does workers’ comp work in AK?

Workers comp insurance policies are based on your estimated employee payroll for the year. This will form the core of your premium cost with various other factors that play a lesser role in the total cost.

At the end of your 12 month policy term, the insurance company will audit your payroll and determine the exact amount. If your actual payroll is lower than projected, you receive a refund. If it’s more than projected, you’ll owe more money.

If an employee gets hurt during this term, make sure you report the injury to the insurance company so they can manage the claim in a timely fashion.

In terms of employee coverage, workers’ compensation usually pays for medical expenses, lost wages, and legal expenses if the employee files a lawsuit related to the accident or injury.

What does workers’ comp cover in Alaska?

Workers who file a workers' comp claim in Alaska can receive benefits for the following:

Medical bills

Lost Wages

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Alaska?

The first step to get a Worker's Comp policy is to gather your business information and know your payroll numbers. Then request a few quotes from an agent or online quoting software. Ask a knowledgeable agent to explain the quotes to you on which one would be the best fit for your company.

Once you finalize the policy you will have coverage for the next 12 months. Make sure you pay your premiums on time so you don't jeopardize your policy.

There are usually a few different options for payment plans. Ask your agent what the options are and pick one that works for your cash flow.

What can happen if I don’t have workers’ comp insurance in Alaska?

There are severe consequences for refusing to comply with Alaska workers’ compensation laws, such as:

$1000 per day in fines for each uninsured employee
Stop-work orders, requiring a business to cease operations until workers’ comp insurance is attained
Potential misdemeanor or felony charges, depending on the duration and severity of non-compliance
Personal liability for medical expenses and employee lost wages

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FAQS

What are workers’ comp death benefits in AK?

In Alaska, workers’ compensation insurance death benefits are as follows:

Spouses with no children receive 80% of the deceased worker’s weekly wage, up to $1,289 weekly.
Spouses with one child receive 50% of the weekly wage; the child gets 40%, up to $1,298 weekly.
Spouses with two or more children receive 30%, and the children receive 70%, up to $1,298 weekly.
Children without a living parent will receive 100% of the deceased worker’s weekly wage, which will be shared if there are multiple children.
If the deceased worker has no immediate family, other dependents, such as parents, grandchildren, or siblings, receive 42% of weekly wages with a cap of $20,000 in total.

Alaska workers’ compensation laws mandate a one-time payment of $5,000 to a surviving spouse and children for everyday expenses. Funeral benefits include up to $10,000 for burial and service expenses.

How do workers’ comp settlements work in AK?

In most cases, Alaska workers’ comp insurance settlements are available as lump-sum or structured payments based on agreed-upon compensation. While an employee and employer are responsible for agreeing, the terms must be approved by the Alaska Workers’ Compensation Board.

What are the statutes of limitations regarding workers’ comp in AK?

Employees must report work-related accidents or injuries to employees within 30 days of an incident.
Employees have two years from injury or illness to file a workers’ compensation claim.
The injured worker has two years from the date of injury or the last payment of a workers’ comp settlement to request a dispute.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Ready: Fill out an online form. It only takes 5 minutes!
Set: One of our agents will contact you to review the quote.
Go: You can get covered starting today!

Learn more about Workers' Comp in Alaska

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Why does it matter?

Avoid surprise bills at audit
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Protect yourself from lawsuits

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