WHO MUST HAVE WORKERS’ COMPENSATION INSURANCE?

Workers’ compensation is something for which every state has laws and requirements. Each state manages its own system. In Alaska, the rules for workers’ compensation are not the same as they would be in another state. This is very important to understand. While some general things do not tend to change from state to state. One of the main differences is the requirement for which employers must carry this insurance.

According to the Alaska Department of Labor and Workforce Development, the state requires any employer who has at least one employee to carry workers’ compensation insurance. There are exceptions, though.

Obviously, if you are self-employed and have no employees, then you do not have to carry the insurance even though, you are technically an employee. You also can avoid buying this insurance if you are self-insured and approved by the Workers’ Compensation Board.

You also do not need to provide coverage for yourself if you are a partner in a business, an executive in a for-profit corporation, a member of a limited liability company within a certain percentage of ownership or an executive officer for certain non-profit organizations.

In addition, your employer may not have to provide you with coverage if you do certain jobs. These include working under a contract to entertain, cleaning, babysitting part-time, drive a taxi, officiate amateur sporting events, sell real estate with a license and contract, drivers for a transportation network company, commercial fishing, harvesting part-time or transient and play or coach professional hockey with health insurance coverage.

This information is educational only and does not constitute legal advice.