Insurance in Alaska

Alaska requires every registered construction contractor to carry both a surety bond and general liability insurance as a condition of contractor registration under AS 08.18. The Construction Contractors program publishes Bond and Insurance Quick Facts on its website; verify current minimum coverage amounts on that page before purchasing a policy. Minimum coverages a new Alaska trades shop should expect to carry: - General liability. The state-minimum limit required for contractor registration is published on the Construction Contractors program page. For commercial jobs, $1M per occurrence / $2M aggregate is the typical contract requirement, well above the state floor. - Workers' compensation. Alaska requires every employer with even one employee to carry workers' compensation under AS 23.30. There is no Texas-style non-subscriber election. Coverage is through the Alaska Workers' Compensation Insurance market or, for qualifying employers, self-insurance approved by the Alaska Workers' Compensation Board. - Commercial auto. Your personal auto policy excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage, and theft and weather-damage losses are meaningful in Alaska. - Builder's risk. A project-specific property policy on the work under construction, commonly required by lenders and general contractors on ground-up construction. - Pollution liability. Underground fuel tanks, heating oil work, boiler and refrigerant work, and any demolition or excavation near petroleum storage create exposure that a standard CGL excludes or sub-limits. A separate contractors' pollution liability (CPL) policy is standard for fuel-system and environmental work. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects on commercial and public jobs. Climate adjustments. Alaska's winters drive two coverage issues most Lower-48 contractors don't think about: (1) frozen-pipe and ice-damming losses on occupied homes during HVAC or plumbing work, and (2) remote job sites where bond and insurance replacement in a claim takes longer than the construction season. Price policies with those realities in mind. Shop the market. Trade association programs (ABC, AGC, NECA, PHCC, MCA) and Alaska independent agents that specialize in contractor accounts can beat street-rate premiums. The contractor must file proof of insurance and bond with CBPL using the forms linked from the Construction Contractors program page. Never let coverage lapse during an active job. A one-day gap on a multi-month Alaska project is enough to void a claim if a loss happens during the gap, and a lapse in the state-required coverage puts the contractor registration at risk.