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In the northernmost point of the United States, Alaska stands out for its vast wildlife, untouched wilderness and Alaskan Native heritage. From the rugged peaks of the Alaska Range to the scenic glaciers of Kenai Fjords National Park, the Last Frontier is home to a landscape as diverse as its culture.
Driven by industries like oil, natural resources and fishing, Alaska presents various opportunities for businesses to flourish. When it comes to protecting your business, finding the right workers’ compensation insurance is crucial.
Workers’ compensation is a state-mandated insurance program for employers with one or more employees. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Working friends and family members are considered employees under Alaska workers’ compensation law.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of your business.
The Alaska Department of Labor and Workforce Development is responsible for administering the workers’ comp law in Alaska. The law requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance. The Division of Workers’ Compensation can approve self-insured requests based on financial status.
Employees can verify online if their employer has coverage.
Policies include protection for full, part-time and temporary workers.
Exemptions from workers’ comp in Alaska may include, for example:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Alaska workers’ comp insurance provides three types of benefits for work injuries:
The weekly compensation rate in Alaska is 80% of the employee’s spendable weekly wage, which is gross weekly earnings minus payroll deductions. This amount is not to exceed or fall below a maximum and minimum rate determined by the state.
Find more information on Alaska workers’ compensation benefit rates.
In the event of a work-related injury or illness:
Employees in Alaska should report their injury to their employer immediately but no later than 30 days from the accident.
The employee should immediately seek medical attention.
Once notified of the injury, employers should file a report of the accident within 10 days to their workers' compensation insurance partner.
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
In Alaska, the injured worker can choose their treating doctor. They may change their treating doctor once but must notify the workers’ compensation partner. If they want to change doctors twice, the injured worker must obtain the workers' compensation partner's written approval. Changing doctors more than once without approval may result in the injured worker being responsible for the medical bills.
The employer’s workers’ compensation partner has 30 days to pay a medical bill once it receives a medical report and the accompanying bill.
If an employee or employer wishes to dispute a claim, they can contact the Workers' Compensation Adjudications Section for mediation services. Mediation is an informal process where an unbiased third party facilitates a discussion to come to an agreement between the two parties.
Generally, employers in Alaska with one or more employees must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
Employers who fail to provide workers’ compensation coverage may receive a stop work order. If they continue to operate without insurance after a stop work order, it may result in a $1,000 per day penalty for each day of violation. Employers can also be penalized between $10 and $1,000 per employee for each day each employee worked during lapses in coverage.
In most cases, employees in Alaska are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, independent contractors aren’t covered by workers' compensation insurance in Alaska. Workers' compensation laws typically apply to employees rather than independent contractors. However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.