Requirements For Employer

Workers’ Compensation Requirements For Employers

Employer’s Guide to the Workers’ Compensation Act

Workers’ Compensation Insurance Requirements

Requirement for Employers:

Under the Alaska Workers’ Compensation Act, every employer with one or more employees in Alaska is obligated to procure workers’ compensation insurance. Self-insurance is permissible only if approved by the Alaska Workers’ Compensation Board.


Business Owners and Entity/Agency Officials:

Effective from August 1, 2019, certain business owners/executives are exempted from mandatory workers’ compensation liability coverage. The exemptions include:

  • Sole proprietors of sole proprietorships;
  • Partners in partnerships;
  • Members of limited liability companies with a minimum 10% ownership interest;
  • Executive officers of municipal, religious, and legally registered nonprofit corporations, unless the corporation explicitly chooses to cover them;
  • Executive officers of for-profit corporations with a minimum 10% ownership interest.

Despite exemptions, all entities mentioned above must still maintain workers’ compensation coverage for their employees, including family members and friends.


Exceptions to Coverage:

Exceptions are limited and are not based on types of businesses but on the nature of work performed. Exemptions include:

  • Part-time baby-sitters;
  • Non-commercial cleaning persons;
  • Harvest help and similar part-time/transient help (specific situations can be discussed with the division);
  • Sports officials for amateur events;
  • Contract entertainers;
  • Commercial fishers per AS 16.05.940;
  • Taxicab drivers under specific contractual arrangements;
  • Participants in the Alaska temporary assistance program engaged in required work activities under AS 47.27.035;
  • Professional hockey team players and coaches covered by a health care insurance plan;
  • Qualified real estate licensees under specific contractual arrangements;
  • Transportation network company drivers.


Special Provisions in Statute:

Various special provisions outlined in statute include:

  • High school students in work-study programs are covered as state employees;
  • Volunteer emergency medical technicians are considered state employees under the Act;
  • Special public safety officers appointed by the Commissioner of Public Safety are covered as state employees;
  • Members of state boards and commissions are treated as state employees under the Act;
  • Volunteer firefighters are considered employees of the local fire department;
  • Individuals engaged in civil defense or disaster relief functions in Alaska are covered as state employees;
  • Individual members of the Alaska State Defense Force called into active duty, per AS 26.05.070, are covered as employees of the State.


Obtaining Workers’ Compensation Coverage in Alaska

How to Secure Workers’ Compensation Coverage:

In Alaska, employers can obtain workers’ compensation insurance through either the voluntary commercial market or the involuntary commercial market. Unlike some states, Alaska does not maintain a state fund for workers’ compensation insurance.

Employers are advised to consult their insurance agent or broker for guidance in procuring a workers’ compensation policy for their business. In cases where coverage cannot be obtained from a commercial carrier, individuals have the option to purchase insurance through Alaska’s Assigned Risk Pool, managed by the National Council on Compensation Insurance (NCCI). The NCCI can be reached at 800-622-4123 and is accessible online at:


Reciprocity in Alaska:

Alaska lacks reciprocity agreements with any other states or countries. All employers, including those from out-of-state with employees working in Alaska, are mandated to insure their exposure under the Act. According to AS 23.30.025(a), an insurer issuing a policy covering benefits under the Act must be an admitted insurer in Alaska, duly licensed by the Alaska Division of Insurance, which oversees AS 21, Alaska’s insurance code. For inquiries related to insurance licensing, rates, or policies, the Division of Insurance can be contacted at (907) 465-2515.

For additional queries regarding an employer’s workers’ compensation coverage obligations under the Act, please reach out to the Workers’ Compensation Special Investigations Unit at 907-269-4002.