Business Insurance

Why Get Business Insurance in Alaska
According to the Alaska Earthquake Information Center, Alaska is considered the most seismically active state in the U.S. For this reason alone, every smart Alaskan business owner should get additional earthquake insurance added to their Alaska Business Liability Insurance as a precaution. Natural disasters such as earthquakes can cause extensive damage within seconds. Whether you own a small restaurant or a multi-million dollar company, Alaska business insurance can protect policyholders from damages in the event of a covered natural disaster. Liability insurance will also pay for any resulting injuries if an employee or visitor to your business establishment suffers an accident while on your property. The price you pay for business insurance coverage is small when compared to the possibility of having to pay for all injuries and damages out-of-pocket. The risk is just too great to go without the proper insurance!

Alaska Worker’s Compensation
As a business owner in Alaska, it’s important that you know the details of the Alaska Workers’ Compensation Act. By law, a company with one or more employees in the state of Alaska is required to obtain a workers’ compensation policy. The exemptions to the rule are as follows:

  • Self-insured employer (state-approved)
  • Members of an LLC
  • Commercial fishermen

Volunteer fire fighters are unique inclusions as employees of the fire department. It is your responsibility as a business owner to be aware of this Act and understand how it applies to your business.

Coverage for Alaska Business Insurance
The state of Alaska requires business owners to purchase a minimum amount of Alaska business insurance before they can apply for a business permit from the state. This insurance coverage includes at least $1 million comprehensive automobile liability and between $1 million and $5 million per combined single limit per occurrence of commercial general liability insurance.

Alaska Business Insurance offers protection to businesses by:

  • Paying for court expenses in case of a lawsuit
  • Paying for damages to someone who is injured on your business premises
  • Paying for property damage due to both situations occurring at the same time
  • Protecting injured customers by paying for their medical expenses as a result of an accident when someone else is at fault

The amount of your premium is also influenced by what type of business you own. It is common knowledge that some industries in Alaska are more prone to lawsuits than others. Any business which is in a high risk category can expect to have higher premium costs than one that is not. For instance, a company that operates a lot of heavy machinery will probably cost more to insure than a small retail store. Insurance companies use statistics and their own underwriters’ information to calculate what they charge business owners for general liability insurance coverage and other additional types of insurance.

When you are looking for business insurance coverage, it’s smart to shop around and compare prices and coverage options. As a business owner, the final decision as to what type of coverage (and the resulting cost) is up to you. Your goal is to fully protect both you and your assets in the event of a lawsuit, claim, or covered natural disaster. Don’t risk losing everything you have worked so hard to attain by being uninsured or underinsured. Protect yourself, your business, and your success by purchasing adequate business liability insurance.