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Workers’ Compensation Insurance in Alaska

Workers' Compensation Insurance in Alaska

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If your business has employees in the state of Alaska, you’ll need to make sure you adhere to Alaska’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Alaska?

Alaska requires all employers with one or more employees to obtain Workers’ Compensation Insurance. In Alaska, an “employee” is generally defined as any individual who works for an employer under a contract of hire and is not an independent contractor.

The Alaska Workers’ Compensation Act (WCA) defines all of the requirements for Workers’ Comp in Alaska, and the Alaska Division of Workers’ Compensation (Division) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Alaska?

Almost all workers are covered under Workers’ Compensation in Alaska. If you provide work or services for an employer, and you are not an independent contractor, you will likely be eligible for Workers’ Compensation Insurance. 

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded or exempt from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Alaska, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

Temporary Total Disability Benefits

Temporary Partial Disability Benefits

Permanent Partial Impairment Benefits

Permanent Total Disability Benefits

Death Benefits

What are the penalties for breaking Alaska Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the WCA can result in significant fines and even imprisonment. In order to avoid any costly penalties, it’s important to consult the WCA or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Secure Coverage

Failure to Pay Benefits

Failure to File a Report


How much does Workers’ Compensation Insurance cost in Alaska?

According to the National Academy of Social Insurance Workers’ Compensation Report (November 2020), the average employer cost for Workers’ Compensation in Alaska was $2.25 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Alaska?

Employees who suffer a work-related injury or illness must notify their employer in writing within 30 days; failing to do so may result in delays or claim denial. However, an employee’s failure to report an injury may be excused if the employer had knowledge of the injury and if there is an acceptable reason the employee could not give notice. Employers must report occupational injuries or illnesses to the Alaska Workers’ Compensation Division within 10 days of receiving notice of the injury. 

In the case of a dispute, employers may request an informal conference from the Alaska Workers’ Compensation Division. The Alaska Workers’ Compensation Board conducts formal hearings to resolve issues.  

Alaska Workers’ Compensation Insurance Resources

For more information on Alaska Workers’ Compensation laws and requirements, please visit the following resources:

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