Alaska Workers' Compensation

Workers’ Compensation coverage is one of the fundamental requirements you should fulfill when owning a business. Most states have some form of rules or guidelines about the proper implementation of Workers’ Compensation, and Alaska is no different. Having this insurance policy is mandatory for most companies in the state.

If you are a small business owner in Alaska, you should know what this policy entails and how you can secure one. Our guide will go over Alaska Workers’ Compensation insurance and how to acquire it for your company. Keep reading to learn more or contact us today to get a free quote for Workers’ Compensation!


What Is Workers’ Compensation Insurance?

Accidents can happen in the workplace, even if you’ve taken several precautionary measures and safeguards. If one of your workers gets injured because of an accident while on the job, your company may be liable to pay for the damage they suffered, including medical costs and lost wages.

This liability can be a source of major financial loss for a company. Thankfully, Workers’ Compensation insurance can help cover the expenses. This safety net provides funding for accident claims so you may not have to pay out of pocket for employee injury expenses.

Alaska Workers’ Compensation Insurance: Unique Qualities

The Alaska Workers’ Compensation Act outlines the rights, benefits, and obligations of both employers and employees with regard to workplace injuries. To help ensure the correct application of the law, the Alaska Workers’ Compensation Board handles most of the related processes. Here are a few of the unique features of Alaska’s Workers’ Compensation regulations:

What Is Covered by Alaska Workers’ Compensation Insurance?

Alaska Workers’ Compensation policies typically cover the damages that a worker may suffer because of an accident, working conditions, and other factors. Here are some items that could be covered:

Medical Bills

If an employee gets injured while on the job, expenses for tests, treatment, consultations, and other medical services may be covered.

Missed Wages

Getting injured typically means having physical issues that could prevent a worker from fulfilling their job duties or attending work. These employees may not be able to earn days’ worth of income due to these challenges. In order to regain these missed wages, a worker can file a claim and may receive compensation.

Therapy and Ongoing Support

Some injuries can take longer to heal. A worker may need to pay additional fees for therapy sessions and other types of ongoing support before they can fully recover. As their employer, you may be liable to provide compensation for these additional services.

What Isn’t Covered by Alaska Workers’ Compensation Insurance?

Not all situations and aspects of employee injuries are covered by this type of insurance plan. Pain and suffering, in particular, is noneconomic damage that isn’t included in most plans. Here are other scenarios where an employee may not be eligible for compensation:

  • Failure to use equipment, machinery, and other hazardous company property properly.
  • The injury was intentional.
  • The injury was caused by a worker not following company safety policies and other similar regulations.
  • The worker was under the influence of controlled substances during the injury.
  • The injury didn’t happen on-site or during the worker’s shift hours.
  • The employee suffered injury from violence they started.
  • The injury happened after their contract was terminated.

Does Your Company Need Workers’ Compensation Insurance?

As mentioned, not all companies are required to get Workers’ Compensation coverage in Alaska. In general, as long your business has one or more employees, you may want to obtain a plan. Here are some exemptions:

  • Sole proprietors of businesses
  • The partners of a partnership company
  • Executive officers of nonprofits, municipal corporations, and religious groups
  • Members of an LLC or for-profit organization with a minimum 10% of ownership interest

Get a Quote for Your Workers’ Compensation Insurance Plan

When you own a business in Alaska, you should make sure that your bases are covered, including your Workers’ Compensation insurance. PolicySweet can help you meet this requirement. We’ve helped many companies in food services, retail, personal care, and other industries receive coverage. If you want to get a quote, please contact us today.

Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.