Workers comp coverage required in Alaska
Required for all employers with one or more employees. Verified 2026-05-09.
Who must carry workers comp in Alaska?
Alaska workers compensation coverage is required Required for all employers with one or more employees.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Alaska employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Individuals performing services for remuneration are presumed to be employees unless they meet specific criteria for independent contractor status, including control, separate business, and independent nature of work. General contractors are generally liable for the workers' compensation coverage of uninsured subcontractors and their employees.
Penalty for going without
Employers can be assessed penalties up to $1,000 per employee for each day they remain uninsured, and a mandatory $1,000 per day for violating stop work orders. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Alaska?
Required for all employers with one or more employees.
When does the requirement kick in for a new Alaska employer?
The clock starts on the first day the first qualifying employee is on the books. Alaska does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Alaska?
Employers can be assessed penalties up to $1,000 per employee for each day they remain uninsured, and a mandatory $1,000 per day for violating stop work orders.
Do 1099 contractors trigger the coverage requirement in Alaska?
Individuals performing services for remuneration are presumed to be employees unless they meet specific criteria for independent contractor status, including control, separate business, and independent nature of work.
Are subcontractors counted toward the threshold in Alaska?
General contractors are generally liable for the workers' compensation coverage of uninsured subcontractors and their employees.
What happens if I am audited and found non-compliant in Alaska?
Alaska typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Employers can be assessed penalties up to $1,000 per employee for each day they remain uninsured, and a mandatory $1,000 per day for violating stop work orders. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.