Workers' comp rates in Alaska depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Alaska
With rates starting at $5 monthly, NEXT, Simply Business and Coverdash offer the cheapest and best workers' comp insurance in Alaska.
Compare top Alaska workers’ comp insurance providers and find your ideal coverage.
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Updated: November 23, 2025
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Best Alaska Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Alaska?
NEXT offers the top cheap workers' compensation insurance in Alaska. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- NEXT: $63
- Progressive: $64
- Thimble: $64
- Simply Business: $65
- Coverdash: $66
Is workers' comp insurance required in Alaska?
Alaska mandates workers' comp insurance for most employers with employees. Exemptions include sole proprietors without employees, domestic workers working fewer than 40 hours per week, and certain agricultural workers. Non-compliant employers face penalties up to $1,000 per day plus potential criminal charges and civil liability for workplace injuries.
How much does workers' comp insurance cost in Alaska?
Workers' compensation insurance costs in Alaska run $67 monthly for a two-person business, which breaks down to about $34 per employee. However, your actual premium depends heavily on your specific industry and payroll size. The most affordable coverage is available to speech therapists at approximately $5 per month ($3 per employee), while roofing businesses face the steepest rates at $755 per month ($378 per employee).
How do you get workers' comp insurance in Alaska?
You can get workers' comp coverage in Alaska by:
- Purchasing coverage from licensed private insurance companies operating in the state
- Buying through assigned risk pools when standard market options aren't available
- Qualifying for self-insurance status if your business meets Alaska's financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
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What does Alaska workers' comp insurance cover?
Workers’ compensation in Alaska covers:
- Medical expenses for workplace injuries, from minor cuts at Anchorage construction sites to severe accidents in Fairbanks oil facilities
- Wage replacement benefits during recovery periods
- Permanent disability compensation for lasting impairments
- Survivor benefits for families of workers killed in job-related incidents
Best Workers' Comp Insurance Companies in Alaska
NEXT takes the lead for workers' comp insurance in Alaska, delivering outstanding customer support and comprehensive coverage options that protect businesses thoroughly. Simply Business and Coverdash rank as strong second and third choices, both offering solid alternatives for small business owners.
| NEXT Insurance | 4.62 | $63 | 1 | 2 |
| Simply Business | 4.53 | $65 | 3 | 1 |
| Coverdash | 4.46 | $66 | 4 | 2 |
| biBERK | 4.44 | $69 | 2 | 3 |
| Progressive Commercial | 4.41 | $64 | 5 | 3 |
| Thimble | 4.35 | $64 | 6 | 3 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Alaska
Select your industry and state to get a customized Alaska workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN ALASKA
Explore the best business insurance providers in Alaska through our guides:
Best Alaska Workers’ Comp Insurance Company Reviews
We've analyzed coverage options, rates and customer service to identify the top workers' comp providers in Alaska.
NEXT
Best Alaska Workers' Comp Insurance
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$63We analyzed thousands of workers' compensation quotes from insurers operating in Alaska across 79 industriesWorkers' Comp Claims Process Score
3.9/5Based on customer satisfaction survey dataWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5Likelihood customers would recommend this provider
Simply Business
Best Alaska Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.5/ 5
4.6/5Affordability
4.2/5Customer Experience
4.9/5Coverage Points
Average Monthly Workers' Comp Premium
$65We analyzed thousands of workers' compensation quotes from insurers operating in Alaska across 79 industriesWorkers' Comp Claims Process Score
3.7/5 (7th)Rating based on customer satisfaction with claims handlingWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.2/5 (5th)Likelihood customers would recommend this provider
Cheapest Workers' Comp Insurance Companies in Alaska
NEXT delivers the most affordable workers' comp coverage in the Last Frontier at just $63 monthly or $755 per year. That puts $4 back in your pocket each month compared to the state average, representing 6% in savings for your business.
Progressive Commercial and Thimble round out the top three cheapest options, both charging around $64 monthly for coverage. These carriers offer solid alternatives if you want to compare quotes beyond the lowest-priced option.
The table below shows costs from all companies we analyzed.
| NEXT Insurance | $63 | $755 |
| Progressive Commercial | $64 | $770 |
| Thimble | $64 | $774 |
| Simply Business | $65 | $780 |
| Coverdash | $66 | $798 |
| biBERK | $69 | $825 |
| Chubb | $78 | $931 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Alaska by Industry
Simply Business offers the most affordable workers' comp for welding at $100 monthly ($1,202 annually). They lead pricing in seven industries, including welding, bakery and auto repair. Progressive Commercial ranks second, delivering the cheapest rates across 14 industries like accounting, veterinary and automotive sectors.
| Accountants | Progressive Commercial | $18 | $212 |
| Ad Agency | NEXT Insurance | $13 | $160 |
| Bakery | Thimble | $46 | $550 |
| Automotive | NEXT Insurance | $98 | $1,180 |
| Auto Repair | Thimble | $129 | $1,549 |
| Barber | Progressive Commercial | $12 | $147 |
| Bounce House | NEXT Insurance | $35 | $419 |
| Beauty Salon | NEXT Insurance | $12 | $145 |
| Cannabis | Thimble | $69 | $834 |
| Candle | Simply Business | $34 | $411 |
| Catering | Thimble | $62 | $749 |
| Cleaning | Thimble | $41 | $498 |
| Computer Programming | NEXT Insurance | $24 | $292 |
| Coffee Shop | NEXT Insurance | $40 | $485 |
| Computer Repair | Progressive Commercial | $21 | $250 |
| Consulting | NEXT Insurance | $26 | $311 |
| Construction | NEXT Insurance | $153 | $1,840 |
| Courier | NEXT Insurance | $201 | $2,408 |
| Contractor | Thimble | $143 | $1,715 |
| Dental | Simply Business | $10 | $114 |
| Daycare | NEXT Insurance | $11 | $135 |
| Drone | Progressive Commercial | $23 | $275 |
| DJ | Thimble | $12 | $141 |
| Dog Grooming | Thimble | $55 | $658 |
| Ecommerce | NEXT Insurance | $18 | $215 |
| Engineering | NEXT Insurance | $33 | $398 |
| Electrical | NEXT Insurance | $49 | $591 |
| Florist | Progressive Commercial | $53 | $637 |
| Excavation | NEXT Insurance | $90 | $1,078 |
| Funeral Home | Progressive Commercial | $22 | $268 |
| Food | Simply Business | $36 | $434 |
| Food Truck | NEXT Insurance | $38 | $453 |
| Home-based | NEXT Insurance | $9 | $104 |
| Gardening | Simply Business | $40 | $479 |
| Handyman | Coverdash | $84 | $1,011 |
| HVAC | Progressive Commercial | $53 | $633 |
| Hospitality | NEXT Insurance | $59 | $703 |
| Jewelry | NEXT Insurance | $26 | $311 |
| Janitorial | Simply Business | $42 | $509 |
| Lawn/Landscaping | NEXT Insurance | $32 | $380 |
| Junk Removal | NEXT Insurance | $121 | $1,452 |
| Manufacturing | Progressive Commercial | $50 | $595 |
| Lawyers | Progressive Commercial | $44 | $526 |
| Massage | NEXT Insurance | $13 | $150 |
| Marine | NEXT Insurance | $126 | $1,517 |
| Moving | NEXT Insurance | $221 | $2,656 |
| Mortgage Broker | NEXT Insurance | $12 | $139 |
| Nonprofit | Progressive Commercial | $27 | $326 |
| Party Rental | NEXT Insurance | $32 | $381 |
| Painting | NEXT Insurance | $117 | $1,403 |
| Pest Control | Simply Business | $61 | $726 |
| Personal Training | Progressive Commercial | $21 | $251 |
| Restaurant | Thimble | $54 | $645 |
| Pet | NEXT Insurance | $27 | $319 |
| Pharmacy | NEXT Insurance | $5 | $64 |
| Photography | NEXT Insurance | $15 | $175 |
| Physical Therapy | NEXT Insurance | $6 | $69 |
| Plumbing | Thimble | $55 | $657 |
| Pressure Washing | Thimble | $71 | $854 |
| Real Estate | NEXT Insurance | $26 | $313 |
| Retail | Progressive Commercial | $30 | $365 |
| Security | NEXT Insurance | $44 | $526 |
| Roofing | NEXT Insurance | $703 | $8,437 |
| Snack Bars | NEXT Insurance | $37 | $442 |
| Spa/Wellness | NEXT Insurance | $15 | $183 |
| Software | Thimble | $23 | $276 |
| Speech Therapist | NEXT Insurance | $5 | $61 |
| Tech/IT | NEXT Insurance | $23 | $271 |
| Startup | NEXT Insurance | $11 | $134 |
| Travel | NEXT Insurance | $6 | $72 |
| Transportation | Progressive Commercial | $194 | $2,326 |
| Tree Service | NEXT Insurance | $188 | $2,258 |
| Tutoring | Thimble | $8 | $100 |
| Trucking | NEXT Insurance | $226 | $2,716 |
| Wedding Planning | NEXT Insurance | $24 | $291 |
| Veterinary | Progressive Commercial | $16 | $196 |
| Window Cleaning | NEXT Insurance | $179 | $2,149 |
| Welding | Simply Business | $100 | $1,202 |
| Wholesale | NEXT Insurance | $34 | $406 |
How Much Is Workers' Comp Insurance in Alaska?
Alaska businesses pay $67 monthly ($805 annually) for workers' comp insurance cost, running below the national average of $74. Industry rates vary, from $15 monthly ($8 per employee) for ad agencies to $192 monthly ($96 per employee) for window cleaning companies.
| Accountants | $19 | $225 |
| Ad Agency | $15 | $175 |
| Auto Repair | $139 | $1,665 |
| Automotive | $106 | $1,273 |
| Bakery | $50 | $594 |
| Barber | $13 | $156 |
| Beauty Salon | $13 | $158 |
| Bounce House | $37 | $445 |
| Candle | $37 | $442 |
| Cannabis | $76 | $908 |
| Catering | $67 | $805 |
| Cleaning | $44 | $531 |
| Coffee Shop | $43 | $519 |
| Computer Programming | $26 | $311 |
| Computer Repair | $22 | $265 |
| Construction | $165 | $1,985 |
| Consulting | $28 | $333 |
| Contractor | $152 | $1,826 |
| Courier | $209 | $2,513 |
| DJ | $13 | $155 |
| Daycare | $12 | $148 |
| Dental | $10 | $123 |
| Dog Grooming | $59 | $711 |
| Drone | $25 | $297 |
| Ecommerce | $20 | $236 |
| Electrical | $53 | $632 |
| Engineering | $35 | $421 |
| Excavation | $97 | $1,167 |
| Florist | $56 | $674 |
| Food | $38 | $459 |
| Food Truck | $41 | $497 |
| Funeral Home | $24 | $292 |
| Gardening | $43 | $514 |
| HVAC | $57 | $682 |
| Handyman | $85 | $1,020 |
| Home-based | $9 | $110 |
| Hospitality | $63 | $760 |
| Janitorial | $45 | $534 |
| Jewelry | $28 | $331 |
| Junk Removal | $128 | $1,535 |
| Lawn/Landscaping | $35 | $415 |
| Lawyers | $48 | $573 |
| Manufacturing | $53 | $639 |
| Marine | $136 | $1,635 |
| Massage | $13 | $161 |
| Mortgage Broker | $13 | $152 |
| Moving | $238 | $2,853 |
| Nonprofit | $29 | $347 |
| Painting | $128 | $1,535 |
| Party Rental | $34 | $406 |
| Personal Training | $23 | $272 |
| Pest Control | $64 | $773 |
| Pet | $28 | $336 |
| Pharmacy | $6 | $70 |
| Photography | $16 | $187 |
| Physical Therapy | $6 | $74 |
| Plumbing | $59 | $703 |
| Pressure Washing | $77 | $918 |
| Real Estate | $28 | $333 |
| Restaurant | $58 | $697 |
| Retail | $32 | $384 |
| Roofing | $755 | $9,060 |
| Security | $47 | $561 |
| Snack Bars | $40 | $475 |
| Software | $24 | $291 |
| Spa/Wellness | $16 | $193 |
| Speech Therapist | $5 | $65 |
| Startup | $12 | $144 |
| Tech/IT | $25 | $298 |
| Transportation | $209 | $2,512 |
| Travel | $6 | $78 |
| Tree Service | $200 | $2,400 |
| Trucking | $245 | $2,942 |
| Tutoring | $9 | $109 |
| Veterinary | $18 | $211 |
| Wedding Planning | $26 | $314 |
| Welding | $107 | $1,283 |
| Wholesale | $37 | $440 |
| Window Cleaning | $192 | $2,303 |
Alaska Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Alaska:
Alaska Fishermen's Fund
Alaska created a separate fund in 1951 for commercial fishermen injured on or offshore. License and permit fees finance it. If you're in the fishing industry, this fund provides alternative coverage options that can affect your traditional workers' comp needs and costs.
Owner/Officer Payroll Caps
Alaska sets fixed payroll amounts for rating purposes: $39,300 for sole proprietors, partners and LLC members; $31,200 to $124,800 for corporate officers. Your actual salary doesn't matter. These preset figures determine your premium, which can save or cost you money depending on what you really earn.
No Reciprocity Agreements
Alaska won't accept out-of-state policies. Multi-state employers must buy separate Alaska coverage instead of extending existing policies. This requirement adds administrative hassle and eliminates volume discounts from consolidated coverage.
Six-Year Penalty Statute
Alaska can penalize you for coverage gaps dating back six years. This extended lookback period increases your compliance risk. Insurers factor this stricter enforcement into their rates when pricing your policy.
Benefits Guaranty Fund
Alaska's fund covers injured workers when employers lack insurance, then aggressively pursues reimbursement. Insurers account for these tough collection practices when assessing risk and setting rates for Alaska businesses.
How Much Workers' Comp Insurance Do I Need in Alaska?
Alaska law requires workers' compensation insurance the moment you hire your first employee. No exceptions, no opt-outs.
Your policy covers reasonable medical care without dollar caps, temporary disability benefits while employees recover, permanent impairment payments and death benefits up to $10,000 for funeral costs. Insurers calculate your premium using NCCI classification codes that reflect your employees' job duties, your total payroll, and your claims history. Operating without required workers' comp coverage can result in penalties from $10 to $1,000 per employee per day, plus a mandatory $1,000 daily fine if you violate a stop work order.
Alaska Workers' Comp Insurance Exemptions
While you're required to have coverage in Alaska, some business categories are exempt from workers' comp requirements:
- Sole proprietors: You can't be an employee of your own company under Alaska law, so if you're self-employed you don't need workers' comp coverage for yourself. However, you must still get coverage for any employees.
- Independent contractors: Your contractors must pass Alaska's independent contractor test (proving they work independently) to avoid needing contractor workers' comp coverage.
- Corporate officers (10% or more ownership): If you own 10% or more of your corporation, you can opt out of workers' compensation requirements.
- General partners/LLC members (10% or more ownership): As a partner or LLC member with at least 10% ownership, you can waive workers' comp coverage for yourself.
- Executive officers of nonprofits: Officers of municipal, religious and legally registered nonprofit corporations aren't considered employees unless the corporation elects to cover them.
- Part-time babysitters: Non-commercial babysitters working in private homes qualify for a workers' comp insurance exemption.
- Domestic cleaning workers: Cleaning persons hired directly by residents to clean personal dwellings are exempt. This doesn't apply to business or commercial cleaning.
- Harvest and transient help: Part-time seasonal workers performing non-integral business tasks on an intermittent basis without a permanent work address are exempt.
- Sports officials: Officials working amateur sporting events don't need coverage.
- Contract entertainers: Entertainers working under contract are exempt from workers' comp requirements.
- Commercial fishermen: As defined in AS 16.05.940, commercial fishermen are exempt from standard workers' comp requirements.
- Certain taxi cab drivers: Statutorily-defined taxi drivers qualify for exemption.
- Professional hockey players and coaches: Players and coaches covered under a health care insurance plan that covers both work-related and non-work-related injuries are exempt.
- Real estate agents: Qualified real estate licensees working under specific contractual arrangements that designate them as non-employees for tax purposes are exempt.
- Transportation network company drivers: Rideshare drivers transporting passengers are exempt. This doesn't include couriers, personal shoppers or food delivery drivers.
- Alaska temporary assistance participants: People in Alaska's temporary assistance program performing certain required work activities are exempt.
- Volunteers: Unpaid volunteers performing services for nonprofit organizations don't need workers' comp.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Workers covered by federal programs are exempt from Alaska's workers' compensation requirements. This includes federal government employees under FECA, railroad employees under FELA and maritime workers under the Longshore and Harbor Workers' Compensation Act. Independent contractors and unpaid volunteers are also excluded nationwide.
Alaska's maritime and fishing industries face unique federal considerations. Many Alaska fishermen, fish processors and vessel workers fall under federal maritime law rather than state workers' comp. Alaska created a separate Fishermen's Fund in 1951 to provide additional benefits for licensed commercial fishermen injured on shore or in Alaska waters, financed through fishing license and permit fees.
How to Get the Best Workers' Comp Insurance in Alaska
Here's how to get workers' comp insurance with the right provider at the best price based on your specific industry needs.
- 1Determine if you need workers' comp coverage in Alaska
Check whether workers' comp exemptions apply to your business structure or employee types. A sole proprietor web designer doesn't need coverage, but adding one employee changes everything. Alaska requires every employer with one or more employees to carry workers' compensation insurance unless the Alaska Workers' Compensation Board approves you for self-insurance.
Some business owners can exempt themselves from coverage: sole proprietors, partners in partnerships, LLC members with at least 10% ownership and executive officers of for-profit corporations with at least 10% ownership. You still need coverage for all employees, including part-time workers, family members and friends.
- 2Gather your business information
You'll need employee count, annual payroll and NCCI classification codes for accurate quotes. The National Council on Compensation Insurance (NCCI) assigns class codes to various professions in Alaska. These codes determine your base insurance rates based on each job's risk level.
Getting your payroll or classification code wrong creates problems. You could face surprise audit bills later or discover you're not covered when you need to file a claim. Your workers' comp premium is calculated per every $100 of payroll, so accurate wage estimates matter.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three different insurers to compare coverage and pricing. Alaska doesn't have a state fund, so you'll purchase coverage from private insurance carriers licensed to operate in the state.
Business insurance rates vary between carriers based on their experience with your industry, your company's safety record and the specific classification codes assigned to your employees. If you can't obtain coverage from a commercial carrier, you can purchase insurance through Alaska's Assigned Risk Pool, administered by NCCI at 800-622-4123.
- 4Research providers with industry experience
Once you have quotes, focus on insurers who understand your business risks and classification codes beyond offering affordable rates. Construction companies should prioritize carriers specializing in high-risk industries and understanding Alaska's occupational safety requirements. Alaska's remote locations and challenging working conditions create unique risks that experienced carriers handle more effectively.
- 5Evaluate your top provider options
Look into each insurer's track record to determine which offers the best coverage for your business:
- Check claim processing times, customer service ratings and complaint history with Alaska's Division of Insurance at (907) 465-2515.
- Verify the insurer's experience handling claims in Alaska's regulatory environment, especially for businesses operating in remote locations.
- Ask about loss control support, safety consultations and return-to-work programs that can reduce your future premiums.
- Choose carriers with strong financial ratings who can handle claims efficiently.
- 6Review and purchase your workers' compensation policy
Read policy terms carefully, focusing on coverage limits, exclusions and renewal conditions specific to Alaska regulations. Verify which employees are covered and confirm your classification codes match your actual business operations.
Choose payment options that work for your cash flow. Pay-as-you-go structures let you pay premiums based on actual payroll rather than estimates, which helps seasonal businesses or companies with fluctuating employee counts avoid large upfront payments and year-end audit surprises.
- 7Reassess before annual renewal
Before your policy renews, look at how your business has changed. Check your employee count, review any claims you filed and see where your experience modification rate (EMR) stands. NCCI calculates your EMR based on your claims history, and it impacts your premium when your annual workers' comp costs exceed $5,000.
Let your insurer know about changes so you're not underinsured or overpaying. Insurers can apply policy credits and debits up to 25% to adjust their filed rates.
Best Alaska Workers' Compensation Insurance: Bottom Line
NEXT, Simply Business and Coverdash lead Alaska's workers' comp market. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Alaska Department of Labor and Workforce Development. "Employer's Guide to the Alaska Workers' Compensation Act." Accessed November 27, 2025.
- PR Newswire. "Simply Business Partners With Employers® to Expand Workers' Compensation Offering for Small Business Customers." Accessed November 27, 2025.
- PR Newswire. "Simply Business Partners With SolePro to Offer Unique Owner-Excluded Workers' Compensation to Small Business Customers." Accessed November 27, 2025.
- PR Newswire. "Simply Business Teams Up With Cerity® to Offer Workers' Compensation Coverage to Small Business Customers." Accessed November 27, 2025.