Every employer with employees working in Alaska is obligated to procure and maintain an active workers’ compensation insurance policy or obtain approval as a self-insured employer.
Qualifying as a Self-Insured Employer
To be recognized as a self-insured employer in Alaska, a company must meet the following criteria:
- Operate within the state for at least five years.
- Employ a minimum of 100 individuals.
- Possess a net worth of at least $10,000,000.
- Demonstrate financial capability to meet present and future obligations under the Act.
- Implement a functional safety/loss program.
- Provide claims services within Alaska through either an in-house staffed facility or independent, licensed, resident adjusters.
- Agree to post any required security deposit.
Application Process for Self-Insurance
Employers meeting these conditions can apply for a Certificate of Self-Insurance by completing Form 07-6129. The application must be accompanied by:
- Audited financial statements for the three preceding fiscal or calendar years.
- A copy or description of proposed excess insurance, including coverage details and effective dates.
- Statistical information on Alaska payroll, workers’ compensation losses, and premiums paid for the past three years.
- A copy or detailed outline of the safety/loss control program.
- A security deposit, either $600,000 or 125% of the total accrued workers’ compensation liability, in the form of an irrevocable letter of credit from an authorized Alaska financial institution.
Additional Requirements for Subsidiaries and Joint Ventures
For majority or wholly-owned subsidiaries, a written guarantee from the parent company is required. Joint ventures must provide their operating agreement and audited financial statements for the three years preceding the application.
Certificate Duration and Renewal
A Certificate of Self-Insurance is valid for one year from the date of issuance and may be renewed using application Form 07-6130.
