MoneyGeek evaluated insurers for their cost, financial stability, customer service and ease of obtaining online quotes to determine Alaska's best workers' compensation insurance. With strong ratings across these areas, Thimble scored the best.
To protect themselves from possible monetary and legal responsibilities, small business owners in Alaska are required to carry workers' compensation insurance. This insurance covers medical costs, lost salaries and possible lawsuits should a worker become sick or hurt while at work.
Best Workers’ Compensation Insurance in Alaska
Best Workers’ Compensation Insurance in Alaska
Based on MoneyGeek's analysis, Thimble is the best worker's compensation insurance provider in Alaska. Workers' compensation insurance from Thimble is priced at $203 on a monthly average, but this may vary based on circumstances specific to your company.
How was this MoneyGeek score calculated?
- Has an average monthly rate of $203
- Strong financial stability rating
- Reasonably fast online quote process
Thimble provides the overall best workers' compensation insurance in Alaska. One of the most cost-effective insurers in the state, rates typically cost $203 every month or $2,433 each year. It generally offers quotes to prospective policyholders in just a minute and a half, which is the fastest speed of all the insurers we reviewed. Its customer service, however, is not as great as the other companies we analyzed.
- Costs an average of $229 a month
- Strong customer service
- Excellent financial stability
biBERK is a dependable provider of workers’ compensation insurance for businesses in Alaska. It has a solid financial stability rating of A++ from AM Best. Due to the limited number of complaints from consumers, this insurer's present customer service is pretty strong. However, this insurer does not have the most affordable rates in Alaska, with an average monthly cost of $229 or $2,571 annually. It generally takes an average of two minutes and 14 seconds to acquire a quote, which is slower than other insurers we evaluated.
- Insurance costs an average of $257 monthly
- Reasonably fast quotes
Next ranks as Alaska's third-best workers' compensation insurer. In comparison to other insurance providers we looked at, Next takes longer on average to deliver a quote online, taking approximately two minutes and 23 seconds.
Having an AM Best rating of A-, it isn't the most financially secure provider in Alaska. In addition, Next has the highest prices of the list's insurers, charging an average of $257 monthly or $3,080 yearly.
Cheapest Workers’ Compensation Insurance in Alaska
The most affordable workers' compensation insurance in Alaska is offered by Thimble, with monthly rates averaging $203. The number of employees and payroll affect insurance prices significantly. For companies with 20 employees and $1,250,000 in yearly payroll costs, Thimble offers the best value.
For businesses with a staff of 20 and yearly payroll expenses of $1,250,000, Thimble is MoneyGeek's leading option for inexpensive workers' compensation insurance in Alaska, with an average premium of only $203 monthly.
Thimble consistently offers quotes to potential business owners in less than a minute and a half. Although it is easily accessible and reasonably priced, our analysis of comparable service providers revealed that Thimble's overall financial stability is not as good.
To identify the least expensive option, the table below ranks insurance companies by their average monthly rates. The most affordable option for you might [depend on other factors] (#factors-that-impact-workers-comp).
Best Workers’ Compensation Insurance for Micro Businesses in Alaska
The best workers' compensation insurance provider in Alaska for companies with five employees is biBERK, with an average monthly rate of $65.
The number of employees impacts your workers' compensation insurance cost, but payroll is often the biggest expense. We identified the best workers' compensation for micro businesses in Alaska, which includes businesses with fewer than 10 workers, by collecting estimates for a company with a staff of five and yearly payroll expenses of $312,500.
For workers' compensation for micro businesses in Alaska, we recommend biBERK. Businesses with a staff of five and $312,500 in yearly payroll expenses should anticipate paying $65 monthly or $733 annually for workers' compensation insurance. Of all the insurance companies we looked at, this premium is the most affordable.
This company also has the best AM Best financial stability rating. Business owners can get a quote from biBERK in just two minutes and 14 seconds. While not the fastest insurer for online quotes, the company does make it simple and quick to get rates.
Best Workers’ Compensation Insurance for Midsize Businesses in Alaska
The best workers' compensation insurance in Alaska is provided by Thimble, with a $932 monthly rate for companies with 100 staff members.
Payroll is a significant factor in workers' compensation costs, in addition to the number of employees. To determine the best workers' compensation for midsize businesses in Alaska, we compiled estimates for a business with 100 staff members and a $6,250,000 yearly payroll.
When it comes to medium-sized businesses in Alaska, Thimble performs better than other options. For companies with 100 staff members and $6,250,000 in yearly payroll expenses, this provider offers a monthly rate of $932, or $11,184 annually. It has a quick online quote procedure and is Alaska's least expensive option for midsize enterprises. However, Thimble scored lower in terms of financial stability and had a higher average complaint score.
How Much Is Workers’ Compensation Insurance in Alaska?
For companies with 20 employees, workers' compensation insurance in Alaska averages $229 every month, making it more expensive compared to the $168 monthly cost across the nation. Our sample policy limits include:
- $1 million total policy limit
- $1 million per employee limit
- $1 million per accident limit
This means the insurance policy will pay up to $1 million for any accident and $1 million for each employee, up to the $1 million total policy limit. You will need to cover any additional wages lost or higher-than-expected medical costs incurred by the worker, though.
The number of employees and yearly payroll are two of the most important variables affecting insurance premiums. The chart below shows how the price of workers' compensation insurance in Alaska fluctuates depending on the number of employees.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Alaska
There can be a big difference in the price of workers' compensation insurance between businesses. The following factors can impact premiums.
Most insurance companies impose a fixed fee for each $100 of payroll. The rate differs across industries and is decided at the state level. Businesses having higher payroll costs than average are likely to incur an increased rate. In 2022, Alaska levied a fee of $1.37 on average for every $100 of payroll, which is lower compared to the majority of states.
Number of employees
Insurance costs may vary greatly depending on the number of employees you have. Employee illnesses or injuries occurring at work are more likely to strike in a large workforce. Costs for workers' compensation insurance may increase as a result of this higher risk.
Employee class code
A worker's class code specifies the type of job that they engage in. Your rates will likely be more expensive if you are in sectors with a higher risk of injuries than in sectors with fewer hazards.
When setting rates, insurance companies take prior claims into account. Businesses having a long history of claims are considered to be a greater risk. In Alaska, claims for workers' compensation are fairly prevalent. In 2021, the U.S. Bureau of Labor Statistics (BLS) reported 6,200 nonfatal workplace illnesses and injuries at privately owned enterprises in Alaska. In the same year, the BLS reported a national average of more than 2.6 million nonfatal workplace injuries and illnesses in the private sector.
Do You Need Workers’ Compensation Insurance in Alaska?
Alaska requires businesses with at least one worker or more, whether they are working part-time or full-time, to have workers' compensation insurance. There are some exclusions for certain businesses, including contract entertainers, part-time babysitters and sports officials for amateur events, among others.
Obtaining workers' compensation insurance in Alaska is necessary to secure your financial security, even if you are exempt. You take full financial responsibility for any work-related damages if you choose not to purchase workers' compensation insurance. This could result in significant costs and legal action from the harmed worker.
In Alaska, there might be penalties and other consequences if the required workers' compensation insurance is not provided. This can include things like:
- Being shut down until workers’ compensation is obtained
- Jail time
What Does Workers’ Compensation Insurance Cover in Alaska?
When it comes to workers’ compensation insurance, note that the employer is the policyholder. Various costs and benefits associated with work-related accidents or illnesses are often covered by workers' compensation insurance in Alaska. The following are some of the main areas that workers' compensation insurance normally covers:
- Medical expenses: This is for diseases or injuries sustained at work and can include check-ups with the doctor, admissions to a healthcare facility, operations and other essential services.
- Lost wages: This is for wage replacement benefits if a worker cannot continue to work as a result of a sickness or injury sustained on the job.
- Vocational rehabilitation: This is for funding services such as work retraining, skill development, aid in finding a job and other forms of assistance.
The specifics of workers' compensation coverage may change based on the insurance plan, the type of accident or illness and other variables.
Workers’ Comp Resources for Employees in Alaska
The Alaska Department of Labor and Workforce Development's Division of Workers' Compensation is responsible for managing workers' compensation in Alaska. Workers in Alaska must take the following steps in order to submit a claim and receive benefits:
- Report the illness or injury
- Seek medical attention
- Notify the employer
- File a workers' compensation claim
- Cooperate with the claims process
- Review and appeal
Based on what happened and the type of accident or illness, different procedures and regulations may apply when making a workers' compensation claim in Alaska.
Frequently Asked Questions About Workers’ Compensation Insurance in Alaska
It is crucial to pick the best provider for workers' compensation insurance in Alaska, but there are a number of factors to consider. Learn the answers to frequently asked questions regarding Alaska's best workers' compensation insurance.
About Melissa Wylie
- Department of Labor and Workforce Development. "Workers' Compensation Requirements for Employer." Accessed May 25, 2023.
- Insurance Information Institute. "Workers’ Compensation Insurance." Accessed May 25, 2023.
- Oregon.gov. "2022 Workers’ Compensation Premium Index Rates." Accessed May 25, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses, and Fatalities." Accessed May 25, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses, and Fatalities." Accessed May 25, 2023.