NEXT is Alaska’s best worker’s compensation insurance provider, scoring almost a perfect rating with 98 out of 100 points. The company sports a great mix of reliable customer service, very low workers' comp rates, and a large coverage selection. However, Thimble and biBerk are good runner ups that you should also consider for coverage.
Cheapest Workers' Comp Insurance in Alaska
Updated: June 2, 2025
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Key Takeaways
NEXT, Thimble, and biBerk are the best cheap workers' comp insurance providers in Alaska.
For most small businesses in Alaska, workers' compensation coverage costs around $946 per year or $80 per month.
Workers' comp insurance is required in Alaska for all companies with employees to cover expenses from employees sustaining injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Alaska
| NEXT | 98 | $175 |
| biBerk | 86 | $469 |
| Thimble | 83 | $402 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Balance of affordable rates and great customer service
Great online tools
Fast quotes process
cons
May not be ideal for business with over 50 employees
COMPANY HIGHLIGHTS
Overall NEXT eared our top spot for the most affordable and best business insurance company in Alaska. They hold a 4.7 out of 5 rating from customer reviews, with more than 600,000 insured clients and coverage for 1,300 business types. The company also offers the most convenience, as you can instantly access your certificate of insurance online and get 24/7 assistance via chat.
How Much Is Workers' Comp Insurance in Alaska?
Depending on the size of your Alaska-based business, workers' comp rates vary anywhere from $946 to $12,371 per year. However, this only represents software development companies, and your rates will vary widely depending on number of employees, the risk of your industry, the work your employees do individually, and your claims history.
| Businesses with five or less employees | $80 | $946 |
| Medium-size small businesses | $241 | $2,829 |
| Larger small businesses | $1,074 | $12,371 |
Factors That Impact Workers’ Compensation Costs in Alaska
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs including the following: industry type, business size, and safety records.
Payroll costs
Workers' compensation premiums are calculated based on payroll costs, with businesses paying rates per $100 of payroll, meaning higher payroll results in higher premiums.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
Business insurance claims cause premium rates to increase at renewal because insurers view businesses with previous claims as higher risk and more likely to file future claims.
Alaska Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task, so we've broken down how to get the best workers' comp coverage, who needs it, and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Alaska
Below we detail the best steps to take to ensure you get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. This will alow you to narrow down which companies are likely to be best for you i in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes — online comparison sites versus speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Alaska?
While all businesses in the state must carry workers' compensation insurance, sole proprietors, partners, and corporate officers with full ownership can opt out of coverage for themselves.
WORKERS’ COMP PENALTIES IN ALASKA
Employers in Alaska are legally required to maintain workers' compensation insurance, and failure to comply results in significant civil and criminal penalties:
- Daily fines: Up to $1,000 per employee for each day they remain uninsured.
- Stop work order violations: Mandatory $1,000 per day for violating stop work orders.
- Personal liability: Being liable personally to pay benefits for sick or injured workers who should have had workers' comp coverage.
- Criminal penalties: Possible criminal fines of $10,000 and one year in prison.
- Premium-based penalties: Up to three times the workers' compensation insurance premium that the employer would have paid if properly insured.
- Extended liability: The statute of limitations extends through the previous six years, meaning penalties can apply for coverage lapses during that period.
What Does Workers’ Compensation Insurance Cover in Alaska?
Workers' compensation insurance provides benefits to employees with work-related injuries or illnesses. It covers medical care, disability benefits, and lost wages, paying 80% of spendable weekly wage (gross weekly earnings minus payroll tax deductions) per Alaska law. This protects employees and shields businesses from legal claims.
Best Workers' Compensation Insurance Alaska: Bottom Line
In Alaska, the top three best and most affordable workers' comp insurance providers are NEXT, Thimble, and biBerk. NEXT leads with the lowest monthly premium of $175 and an MG Score of 98. While these companies are our recommendations, we urge you to compare rates for yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Alaska: FAQ
Below are answers to frequently asked questions about Alaska workers' comp insurance from our MG experts.
Which company has the best workers’ compensation insurance in Alaska?
In Alaska, NEXT surpasses its competition thanks to its competitive pricing (averaging around $175 per month) and low complaint index. However, selecting the best insurance for your needs will depend on various aspects, including your industry, the size of your workforce and particular state requirements.
Does Alaska require businesses to have workers’ compensation insurance?
In Alaska, carrying workers' compensation insurance is compulsory for all businesses, but such coverage is optional for sole proprietors, partners, and fully owning corporate officers.
How much does workers’ compensation insurance cost in Alaska?
On average, medium-sized small businesses in Alaska spend about $241 monthly on workers' compensation insurance.
How We Rated Workers' Comp Insurance Companies in Alaska
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- NEXT. "Custome Reviews." Accessed June 2, 2025.