Popular QuestionsPopular Questions about Business Insurance in Alaska

Why should I purchase Alaska business insurance?

Business insurance is designed to safeguard your company against the various financial losses it may experience due to hazards such as damaging weather events, property crimes, and liability lawsuits.

This coverage can prove quite beneficial as is evidenced by the fact that businesses in Alaska collected more than $748 million in insurance claims in 2019 alone.

A local independent agent can help you build a customized business insurance plan that is designed to meet the specific coverage needs of your company.

How have other business owners used their commercial insurance?

Experts estimate that as many as 40% of all small businesses are likely to face a liability lawsuit setback over the next 10 years. One of the most common is for customer slip and fall injuries, which result in an average cost of about $20,000 per claim.

The following are some of the other common hazards American companies have experienced in recent years as well as the approximate average amount they collected when filing claims:

  • Theft and burglary losses: $8,000
  • Water damage and freezing pipes: $17,000
  • Wind and hail damage: $26,000
  • Fire damage: $35,000

Let a local independent insurance agent help you identify the potential risks faced by your company so that you can be sure you are not left with an unintentional coverage gaps.

How does Alaska business insurance help my company?

Alaska business insurance can cover losses associated with a variety of potential hazards, helping your company avoid large financial losses. Here are some of the many ways you can expect a well-built business insurance policy package to help your company stay profitable in times of trouble:

By covering damage to your business property

  • This is covered by commercial property insurance.
  • Commercial property insurance can cover the building in which your business is housed (if it is company-owned) as well as your various business assets including things like computers, furniture, inventory, supplies, and outdoor signs.
  • Example: An accidental fire destroys a portion of your company’s showroom and thousands of dollars worth of merchandise is destroyed by flames, smoke, and firefighting efforts.

By covering third-party property damage and medical bills

This is covered by commercial general liability insurance, or CGL.

Commercial general liability insurance covers many of the most common liability lawsuits faced by businesses. It includes premises liability insurance, product liability insurance, and advertising mishap liability insurance.

  • ExampleA customer in your store is seriously injured when a product display is knocked over and strikes him in the head.

By covering accidents involving company vehicles

  • This is covered by commercial auto insurance.
  • Commercial auto insurance is required for all business-owned vehicles. It can cover damage to your company cars, vans, trucks, or buses as well as your increased liability exposures if an employee causes an accident while driving a company auto.
  • Example: While out making deliveries, the driver of your company van skids on black ice while changing lanes and causes a multi-vehicle accident.

By covering employee injuries and work-related illnesses

  • This is covered by workers' compensation insurance.
  • In Alaska, workers’ compensation insurance is required for any business that has at least one employee. Exceptions are made for certain workers such as part-time babysitters, contract entertainers, and sports officials for amateur events. This insurance can cover expenses like medical treatments, hospital stays, medications, and disability pay if an employee suffers an on-the-job injury or an occupational illness.
  • ExampleAn employee at your company warehouse suffers a serious spinal injury in an accident involving a forklift.

By covering losses related to long-term forced closures

  • We call this business interruption insurance.
  • If a covered event results in significant damages to your business and you must remain closed for an extended time while repairs are made, business interruption insurance can provide a continuation of income so your company will have the funds it needs to keep paying employee salaries, loan installments, and other regular expenses until you can resume normal business operations.
  • ExampleA major snowstorm causes widespread power outages. Your business loses heat and a water pipe bursts. The excessive water damage not only destroys a lot of important business machinery, it also damages a structural wall which must be repaired before you can reopen for business.

… and more!

In addition to the coverage mentioned above, there are many more business insurance products available that you may want to consider for your company.

To make sure your company is properly insured, you can match with a local independent insurance agent who specializes in covering businesses that operate in your industry. Your agent can help you build a coverage portfolio that is customized to meet each of your company’s specific exposures.

Does Alaska require businesses to have insurance?

Having a business insurance policy is not required by law. However, there are times when you may be required to carry some types of commercial insurance that are often included in a comprehensive business insurance policy package. For example:

  • Most financial institutions will require you to show proof of commercial property and/or liability coverage before they will agree to finance a business loan or line of credit.
  • Contracting firms like construction, roofing, and landscaping companies frequently need to show their potential clients proof of contractors insurance before they can be hired to do a job.
  • With few exceptions, all employers in Alaska are required by state law to carry workers’ compensation insurance.
  • If your business owns a vehicle or fleet of vehicles, you are required by law to cover them with commercial vehicle liability insurance that meets or exceeds the state’s minimum coverage requirements.

To learn more about coverage that you may need to have for your business, you can talk with a local independent insurance agent who will be familiar with your state’s laws and requirements.

How do I find the best price for Alaska business insurance?

Business insurance rates are calculated according to several factors such as:

  • The size of your business
  • The value of your company’s assets
  • The number of workers you employ
  • Your company’s various liability exposures
  • The amount and types of coverage you want

Coverage needs can vary significantly from one industry to the next, so it is best to work with an experienced insurance agent who can help you build a comprehensive, yet affordable, policy package for your company.

A solid business insurance policy package will consist of several different types of policies. Because independent agents can work with multiple insurance companies, they are able to search for the best price for each type of coverage you need.

Sometimes this means that the way to get the most affordable overall price is by putting together a policy package that is made up of policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your local independent insurance agent.

Are there any independent agents in Alaska?

Yes! There are currently 33 independent agencies in Alaska. These agents are available and ready to assist you with all of your business insurance coverage needs.

Did you know that independent insurance agents can work with several different insurance providers to find you build a comprehensive, yet competitively priced, business insurance policy portfolio? Set up a one-on-one consultation with an independent agent near you for help making sure that your business is suitably covered against all of its various exposures.

InformationFind the Best Insurance in Your City

How does your city measure up?

  • Number of business in the US: 27,626,360
  • Number of businesses in Alaska:  73,354
  • Burglary rate per 1,000 residents in the US: 4.69
  • Burglary rate per 1,000 residents in AK:  5.40
  • Auto theft rate per 1,000 vehicles in the US: 2.29
  • Auto theft rate per 1,000 vehicles in AK:  5.42
City Population Number of Established Firms Burglary Rate Per 1,000 ResidentsAuto Theft Rate per 1,000 Vehicles
Anchorage288,00026,0337.089.67
Badger18,7928110.480.95
College10,8388822.823.62
Fairbanks30,9172,7133.514.87
Juneau31,9743,7039.214.10
Kalifornsky8,1342745.363.92
Kenai7,8079706.316.34
Ketchikan8,2841,2834.582.89
Knik-Fairview17,5134984.353.56
Lakes10,0984654.093.09
Meadow Lakes7,6562575.464.12
Palmer7,4561,3911.622.30
Sitka8,4931,6491.981.63
Tanaina10,5204287.896.73
Wasilla10,8382,6468.747.12

Anchorage, AK, Business Insurance

Covering your business assets

Commercial property: Anchorage occasionally sees inclement weather including windstorms, heavy snows, and freezing temperatures. These severe weather events can wreak havoc on business property. Fortunately, commercial property insurance can cover the cost of replacing lost items and repairing damage so that your company can continue to function without experiencing a large financial loss.

Commercial auto: Commercial auto insurance can shield your business from large property damage losses and liability expenses if one of your drivers causes an accident while operating a company-owned vehicle. Rates can be influenced by the types of vehicles you are covering and information about the employees who will be driving them. Talk to a local independent agent to learn more.

Workers’ compensation

Workers’ compensation insurance is designed to cover the cost of medical treatments, disability pay, and other expenses related to workplace injuries and occupational illnesses. Alaska state law requires companies that have at least one employee to purchase this insurance. Workers’ compensation rates are assigned according to your company’s overall payroll and the types of jobs your employees do.

Based on $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Anchorage, AK, would pay for workers’ compensation insurance:

  • Health care industry: $1,775 a year
  • Public administration industry: $330 a year
  • Accommodation and food services industry: $2,160 a year

A cook in a restaurant is more likely to get hurt on the job than an auditor in a government office, and overall rates for the industries these jobs fall under reflect this. Of course, even within each industry, rates can vary significantly. For example, a nurse in the trauma center at Alaska Native Medical Center faces more risks than a receptionist at an optometrist’s office, so even though both jobs fall under the same industry umbrella, they will have much different costs to insure.

A local independent agent can help you compare quotes from a variety of insurers so you can find out what the actual costs for your Anchorage business may be.

Juneau, AK, Commercial Insurance

Covering your business assets

Commercial property: The property crime rate in Juneau is higher than both the state and the national averages. In fact, more than 1,000 thefts are reported in this small city every year. This makes it particularly important for you to ensure that your business assets are sufficiently covered. In addition to covering against crime, your policy can also cover loss and damage due to hazards like inclement weather and accidental fires.

Commercial auto: Accidents can happen even to the most careful and experience drivers, and the drivers who work for your company are no exception. If your Juneau business owns a vehicle or fleet of vehicles, you will need to carry commercial auto insurance that includes liability coverage that meets state mandated minimums for the type of vehicle you are insuring. Rates for these policies can vary according to the number and types of vehicles you are covering, as well as the risk of collisions where they will be driven.

Workers’ compensation

Workers’ compensation insurance covers medical expenses and paid time off for employees who are injured on the job. It can shield your company from liability lawsuits related to these injuries. With few exceptions, if your business has at least one employee, you are required by Alaska state law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.

For every $100,000 spent on annual payroll, here is an estimation of what businesses in the three leading industries in Juneau, AK, would pay for workers’ compensation insurance:

  • Public administration industry: $330 a year
  • Educational services industry: $1,190 a year
  • Health care industry: $1,775 a year

People who work for the government here in Alaska’s capital city are far less likely to be injured on the job than those who work in the medical field, and industry average rates reflect this. Of course, even within industries, rates for specific jobs can vary. In the health care industry, for instance, a medical technician who goes to accident scenes in an ambulance is more likely to be injured at work than a medical transcriptionist at a surgery center.

Work with an independent insurance agent in Juneau to find out how much it will cost to cover the employees who work for your business.

Fairbanks, AK, Business Insurance

Covering your business assets

Commercial property: As a business owner, you have likely invested a lot in your company’s assets such as computers, furniture, machinery, and supplies. Business property insurance can help cover the cost to repair or replace this property if it is lost or damaged by a covered event like a severe storm or a fire. Find a policy and rate that works for your Fairbanks business by teaming up with a local independent agent.

Commercial auto: Many businesses in Fairbanks have company-owned vehicles. If yours is among them, you will need to insure these cars, vans, buses, or trucks with a commercial auto insurance policy. Doing so can prevent your business from facing an expensive lawsuit if one of your drivers causes a serious accident. It can also help to cover costs if your vehicles are damaged in an accident. A local independent agent can help you find a reliable policy at a competitive price.

Workers’ compensation

Workers’ compensation insurance covers medical bills and lost wages for workers who are injured while doing their jobs. It is required for nearly all Alaska businesses that have at least one employee. This insurance not only protects your employees, but it can also prevent your company from facing expensive lawsuits related to workplace injuries. Rates for workers’ compensation coverage are assigned according to your company’s overall payroll amount and the types of jobs your workers do.

For every $100,000 spent on payroll annually, here is an estimate of what businesses in the three leading industries in Fairbanks, AK, would pay for workers’ compensation coverage:

  • Educational services industry: $1,190 a year
  • Accommodation and food services industry: $2,160 a year
  • Public administration industry: $330 a year

As you can see, rates tend to vary from one industry to the next. Even within these industries, there can be a wide variance of rates depending on the specific jobs done by your employees and the risks associated with them. For example, a professor at the University of Alaska Fairbanks is less likely to be injured on the job than a preschool teacher with a room full of toddlers.

Consult a local independent insurance agent to discover how much it will cost to cover your Fairbanks business.

Badger, AK, Business Insurance

Covering your business assets

Commercial property: An out-of-control fire at your place of business can have devastating repercussions. In addition to your business facing extensive property damage, it may also be forced to remain closed for several weeks while repairs are made, and inventory is replenished. So long as your business insurance plan includes sufficient commercial property coverage and business interruption insurance, your company should be able to withstand the losses an accidental fire can cause.

Commercial auto: If your business owns a vehicle or a fleet of vehicles, your company will need the added liability coverage that comes with a commercial auto insurance policy. Your rates for this mandatory coverage will be based on several factors, including the number and types of vehicles you are covering, details about the employees who will be driving them, and the collision rate in your city and anywhere else these vehicles are likely to be driven.

Workers’ compensation

Workers’ compensation insurance can pay for medical bills and lost wages if an employee of your company suffers an occupational illness or is injured on the job. Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their individual job classifications. If you employ at least one person, you will be required to carry this insurance.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Badger, AK, would pay for workers’ compensation coverage:

  • Public administration industry: $330 a year
  • Health care industry: $1,775 a year
  • Construction industry: $8,075 a year

When it comes to workers’ compensation, rates for coverage within the construction industry are among the highest. This is because of the increased risk of serious employee injuries among workers in the construction field. It is important that your business operates within OSHA guidelines in order to minimize the risks to your employees. Companies that have a long, solid history of employee safety can benefit from reduced rates for coverage thanks to experience modifiers and discounts.

Contact a local independent insurance agent to find out how much it will cost to insure your business and to learn what your company can do to improve employee safety.

Knik-Fairview, AK, Commercial Insurance

Covering your business assets

Commercial property: Earthquakes pose a rare but significant risk to businesses in the Knik-Fairview area. This risk here is 829% greater than the overall US average. One of the worst to strike in the area was a 9.2 magnitude quake that had its epicenter just 74.4 miles from Knik-Fairview city center. It is important to keep in mind that damage from earthquakes must be covered by a supplemental earthquake insurance policy. A local independent agent can help you get all the coverage you need to fully protect your business.

Commercial auto: Whether you are insuring a company car, a delivery van, or a fleet of construction vehicles, commercial vehicle insurance can protect your company against losses related to liability risks and property damage if one of your drivers is involved in a collision. A local independent insurance agent can ensure that your policy meets all of the state’s coverage requirements.

Workers’ compensation

In Alaska, workers’ compensation insurance is required by law if your business has at least one employee. Of course, there are a few exceptions to this rule but it stands for nearly all businesses. Workers’ compensation insurance not only protects your employees from financial losses related to workplace injuries and occupational illnesses, it also shields your business from potential lawsuits related to these injures and ailments.

For every $100,000 in annual payroll, here is an estimate of what businesses in the three leading industries in Knik-Fairview, AK, would pay for workers’ compensation coverage:

  • Construction industry: $8,075 a year
  • Educational services industry: $1,190 a year
  • Health care industry: $1,775 a year

The construction industry is one of the most dangerous for workers. These are fast-paced jobs that frequently put workers in hazardous locations. Accidents are quite common, and some are extremely debilitating. That is why rates in this industry are so much higher than the other top industries in Knik-Fairview. Making sure that your employees are well educated about safety protocols and have the equipment necessary to protect themselves can go a long way toward keeping your rates affordable.

Set up an appointment with an independent agent near you for help obtaining and comparing policies and rates to cover the employees who work for you.