Contributed by Khrista Huntley
In August of 2019 The State of Alaska Division of Workers Compensation, in participation with The Alaska Department of Labor and Workforce Development issued new rules pertaining to Workers Compensation requirements for Business Owners in Alaska.
For the most part, these new rules have only been brought to the attention of Industry folks, who regularly receive bulletins and updates from the State about Insurance Regulation changes and updates. The State of Alaska is not contacting business owners individually to disseminate these new rules.
Prior to August of 2019, Corporations Owners could opt-out of providing coverage for themselves by simply filing an Executive Waiver with the State of Alaska Workers Compensation Division. Owners of Limited Liability Corps (LLC’s) were also allowed to go without coverage on themselves. Now there are much more stringent rules to claim exemption for Ownership coverage.
Does your business fall under either of these categories? If you are a C Corp, S Corp or LLC I recommend that you get in touch with your trusted Insurance Professional so they can help guide you in making an informed decision. It may turn out that you are one of the thousands of business owners that now need to purchase Workers Compensation coverage for yourself. Your agent can help determine whether you’re currently compliant; and give you an estimate of the cost. Most Independent Agents and Brokers here in the Valley offer Workers Compensation Policies.
You can also contact the Alaska Division of Workers Compensation Special Investigations Unit at 907-269-4002, or toll free at 888-372-8330. The State has made available a brochure outlining these changes on their website at Alaska.gov.
Fines for operating your business out of compliance with the Workers Comp Division can be up to $1000 per day, for every day you have payroll, so don’t delay!
If you’re interested in receiving a free copy of the latest Employer Guide to Workers Compensation Act give Alaska Insurance Solutions a call at 907-376-1030 and we’ll send one out to you.
Agent 907
Alaska Insurance Solutions, Owner/Agent
