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Is Workers' Comp Required in Alaska

Alaska Workers Compensation Requirements

    Companies with 1 or more employees are required by Alaska state law to buy workers' compensation coverage.

    Sole-Proprietors, Partners and LLC Members are not required to be covered, but they can choose to be included on the workers' compensation application.

    Officers that own less than 10% of the business can't be excluded from coverage. Officers that own 10%, or more, of the company stock are excluded by default. They can be included with a policy endorsement.

    There are a few exceptions to the workers' compensation requirement which include: Officers of a non-profit corporation, part-time babysitters, non-commercial cleaners, sports officials for amateur events, contract entertainers and commercial fisherman.

    The Alaska State Insurance Fund is managed by NCCI.

Workers' Comp Exemptions in Alaska

    Officers of a corporation used to be required to complete and submit a Petition of Waiver Form to the Alaska Department of Labor & Workforce Development in order to be excluded from coverage. Now the only need to be endorsed onto a policy as included.

    Sole-Proprietors, Partners and LLC Members who include themselves under workers' compensation coverage must use a payroll amount of $33,600 for rating their overall workers' compensation cost.

    Corporate Officers who are included for coverage must utilize a minimum payroll of $26,000 and a maximum of $104,000 in order to determine the cost of workers comp insurance.


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How is Workers Comp Calculated?

Workers' compensation is a commercial insurance product categorized as Property & Casualty insurance (P&C Insurance). Even though workers comp is calculated using estimated payroll wages and class codes, premium is still a separate business expense from the cost of payroll. Business owners may treat the cost of coverage as an expense on their taxes.

Work comp rates for all job classification codes are always expressed as a percentage of $100 in wages. An annual policy is always subject to an audit because it was based on estimated wages and not actual wages.

Here is an example using two class codes with different estimated payroll for each class code:

Class Code Insurance Companies Rate Per $100 Estimated Annual Payroll Divide Payroll by 100
8810 Clerical $0.28 base manual rate $25,000  (25000 divided by 100) 250
8835 Home Health Care $1.75 base manual rate $100,000  (100000 divided by 100) 1000

In order to calculate the cost of the policy you only need to multiply each rate with its divided payroll. It benefits employers to re-calculate their premium as their payroll becomes larger than originally anticipated.

Class Code Workers Comp Calculator Estimated Premium
8810 Clerical $0.28 X 250 $70.00
8835 Home Health Care $1.75 X 1000 $1,750.00
Workers' Compensation Laws Vary by State

Every state has their own rules for how employees must be covered and how they must be classified for rating premium. A lot of states use state specific class codes and have different requirements for who is obligated to carry workers' compensation insurance coverage.

If you have employees that travel out of state for work, or they work in multiple states throughout the year, you may need to purchase insurance for all the states where your workers are located and working. In most cases, you can add multiple states to one policy.

Workers' Compensation Insurance in Alaska can be purchased from private insurance companies authorized by the state to provide coverage. The Assigned Risk Pool, or State Insurance Fund, is available for employers who are unable to find coverage from a private company. WorkersCompensationShop.com can help you navigate your best options.

Policy premium is based on numerous factors including: class codes assigned to your business and employees, estimated payroll, covered states, prior policies, owner experience and previous insurance claims.

Enjoy the benefits of our Pay As You Go Workers' Comp Options in Alaska.

$O Deposit or Minimum Down

We've developed Pay As You Go workers compensation programs that reduce or eliminate premium deposits and allow Alaska employers to report and pay premium based on actual payroll wages. Protect your business from audits.

Lower Monthly Payments

We've negotiated special deals with many of our insurance partners. We offer more flexible payment options, like 12 equal installments plans and monthly reporting programs, to help improve cash flow for our business owners.

More Options and More Quotes

With over 35 top rated insurance carriers to quote your work comp coverage, chances are we've got the lowest rates in the industry. For almost every workers compensation class code in Alaska we can find the most complete coverage at the lowest rates around.

Alaska Workers Compensation Insurance Quotes

AK Workers' Comp Specialists

Why waste your valuable time learning all the Alaska rules and doing your own quotes online when you can leave it to the experts to deliver better coverage at the lowest cost. Our workers' compensation Specialists make sure your business is classified accurately and all requirements for owner exemptions are completed correctly.

Help with AK Class Codes

Workers' comp rates vary significantly between NCCI classification codes. We help you determine the correct workers' compensation insurance class codes before your buy a policy. We'll show you how to reclassify certain employees and job duties into lower cost class codes when it can save you money.

Fast Workers' Comp Quotes

We make the process of getting workers compensation quotes fast and easy. We know your time is valuable. That's why we work harder to streamline the quote process, compare your rates and coverages, and present your best options as quickly as possible. We often have your insurance quotes ready in less than 24 hours.

Compare Rates With More Carriers

We're a National Agency, and we have tons of carriers offering work comp in Alaska. We have access to over 50 insurance companies with a diverse appetite and competitive rates. Our markets know we expect the lowest rates, bigger discounts, and more policy credits when we request a quote. We shop your renewal every year.

THE RIGHT QUOTE MAKES A BIG DIFFERENCE.

A BETTER WAY TO BUY
WORKERS' COMPENSATION INSURANCE
Did you know that the cost of a workers comp policy in Alaska can vary significantly between insurance company, underwriter, and insurance agency?
Find the best deal on workers compensation insurance.
Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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