Workers Comp Rates in Alaska (AK)
The average workers' compensation rate in Alaska is $2.15 per $100 of payroll , effective as of 2025-01-01. This is $0.96 (80.7%) above the national average of $1.19 per $100. Alaska has a competitive insurance market where employers can purchase workers' comp from private insurers. Alaska has one of the highest workers' comp rates in the nation due to remote work locations and hazardous industries like fishing, mining, and oil extraction.
Workers Comp Requirements in Alaska
Workers Comp Rates by City in Alaska
The table below shows average workers' compensation rates for 3 cities in Alaska, sorted by rate from highest to lowest. Rates range from $2.10/$100 in Anchorage to $2.25/$100 in Fairbanks. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Fairbanks | $2.25 | $5,625 | +$0.10 | +$1.06 | Interior region |
| Juneau | $2.18 | $5,450 | +$0.03 | +$0.99 | State capital |
| Anchorage | $2.10 | $5,250 | -$0.05 | +$0.91 | Largest city |
How Alaska Compares to Other States
Below is a comparison of Alaska with five states that have similar workers' compensation rates. This comparison helps illustrate where Alaska stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| Alaska (AK) | $2.15 | Competitive | 1+ | 3 days | $5,375 |
| Hawaii (HI) | $1.85 | Competitive | 1+ | 3 days | $4,625 |
| Connecticut (CT) | $1.60 | Competitive | 1+ | 3 days | $4,000 |
| Pennsylvania (PA) | $1.55 | Competitive | 1+ | 7 days | $3,875 |
| California (CA) | $1.45 | Competitive | 1+ | 3 days | $3,625 |
| Rhode Island (RI) | $1.42 | Competitive | 1+ | 3 days | $3,550 |
Workers Comp Cost Examples for Alaska
The following table shows estimated annual workers' compensation costs for various payroll sizes in Alaska using the state average rate of $2.15 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $1,075 | $90 |
| $100,000 | $2,150 | $179 |
| $250,000 | $5,375 | $448 |
| $500,000 | $10,750 | $896 |
| $1,000,000 | $21,500 | $1,792 |
| $2,500,000 | $53,750 | $4,479 |
Frequently Asked Questions About Workers Comp in Alaska
How much does workers comp cost in Alaska?
The average workers' compensation rate in Alaska is $2.15 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $5,375 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in Alaska?
Yes. Alaska requires workers' compensation for employers with 1 or more employees. The following are exempt: Sole proprietors, some commercial fishermen. Penalties for noncompliance include: Misdemeanor, $1,000/day fine plus double liability for claims.
Where can I buy workers comp in Alaska?
Alaska has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in Alaska?
The waiting period in Alaska is 3 days. This means an injured worker must wait 3 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in Alaska is $1,334.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in Alaska, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.