What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Alaska

When you hire employees in Alaska, it is important to secure the proper insurance coverage to comply with state requirements and protect your business.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in Alaska. This insurance covers medical expenses and lost wages if an employee is injured on the job. It also protects your business from potential lawsuits related to workplace injuries.

• All employers with one or more employees must carry workers' compensation insurance.
• Coverage is required from the first day of employment.
• Insurance can be obtained through private carriers or the Alaska Workers' Compensation Board.

Unemployment Insurance

Employers in Alaska must also participate in the unemployment insurance program. This program provides temporary benefits to workers who lose their jobs through no fault of their own.

• Employers register with the Alaska Department of Labor and Workforce Development.
• Regular payroll reporting and contribution payments are required.

Other Recommended Insurance

While not always legally required, consider these insurance types to enhance operational security:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance to cover claims related to hiring, discrimination, or wrongful termination.

Operational Tips

• Maintain accurate recordkeeping of all insurance policies and employee coverage.
• Integrate insurance premium payments into your payroll system for timely compliance.
• Review insurance requirements annually as regulations and business size may affect coverage needs.

As of 2026, following these insurance requirements will help you stay compliant and protect your Alaska business when hiring employees.