The state of Alaska is probably best known for its rugged landscape, magnificent scenery, and harsh winter weather. Ranked third in terms of economy by CNBC’s 2011 Top States for Business, Alaska is one of the leading producers of oil since the oil and gas reservoir near Prudhoe Bay on the Arctic Coast was found in 1968. To this day, oil production continues to be one of Alaska’s leading industries. Alaska holds the nickname of “Land of the Midnight Sun” and “The Last Frontier” due to their distance from the lower 48 states as well as its landscape and climate. Aside from oil production, Alaska is also known for fishing, tourism, and the production of wood products and furs. The native population of Alaskans consists of Indians, Eskimos and Aleuts; with about half of the Alaska natives being Eskimos. A small business in Alaska received several perks, including favorable taxes. Why not capitalize on these perks, and get the best business insurance in Alaska?
Standard Business Insurance Coverages in Alaska
Business Owners Insurance in Alaska is an insurance policy obtained by a business, also known as a BOP, as a comprehensive bundle for small companies that offers a variety of liability coverages. Property insurance and general liability are the two chief BOP coverages. This insurance coverage for Alaskan employers transfers risk away from the entity owner to the insurance company by providing them with added security for different types of liability, including buildings and structure, equipment, and litigation. The most common claims that business owners insurance coverage protects you from include: employee injury, loss of income, focused liability claims, important documents, equipment breakdown, fire, authorized liability claims, employee deceit, money and securities, and property claims. Other components for the enterprise in Alaska may be supplemented from the original BOP coverage depending on the possible risks of the organization.
General liability insurance in Alaska is pivotal to provide security and protection for employers from financial burdens that may result from dishonest acts, omissions, or a combination of the two. These acts may be caused by the business leader or his workers and may result in bodily injury or property damage. Contractual liabilities, liabilities from goods sold, and accidents on the premises of the firm are some of the more common types of exposures covered under general liability insurance. The injury or damage might be a result of disruption or unplanned. General liability insurance for organizations in the state of Alaska may be a single policy or can be part of a package policy.
A package policy is a select type of insurance policy for an Alaska-based company that includes two or more different types of insurance into one insurance policy, or a bundle. Typically, a package policy in the extreme northwest state of Alaska will combine general liability insurance (described above) and commercial property (described below); although a bundle policy can also be carefully designed to include just about every type of coverage which will vary based on the unique needs of the organization. A package policy is obliging to an employer as it provides them with a great amount of flexibility to adapt a policy for the personal necessities and risk exposures of the business.
Commercial Property Insurance in Alaska is a type of security coverage for different types of Anchorage, Alaska commercial property, including, vital papers, building, materials, equipment, furniture, stock, and personal property. Commercial property insurance offers protection against different types of perils, including windstorm, hail, explosion, fire, wreckage, theft, natural disasters, and lightning strikes. A variety of industries feel more protected with this selection of insurance, including retailers, not-for-profit entities, manufacturers, and service-related industries.
Any Alaskan business owner with employees working for them is required to obtain Workers’ Compensation insurance to offer coverage against employee work-related illnesses, or occupational injuries. Workers’ compensation insurance in Alaska is a no-fault, state-mandated insurance structure that provides benefits to employees who suffered injuries or an illness during work hours. The state of Alaska requires every company with employees to carry workers’ compensation insurance, therefore, they may be liable for harsh fines and civil penalties if they fail to carry it, and possibly be subjected to paying the cost of injuries to their workers. By having workers’ compensation insurance for your Anchorage, Alaska company, personnel benefit from medical care and wages loss coverage with the guarantee that they will not take legal action against the employer for injury or illness received on the job.
Business owners in the Last Frontier State, whether they have one vehicle or numerous vehicles, needs to be protected by commercial auto insurance. Commercial auto insurance in Alaska supplies financial security to employers and their personnel by offering coverage for a company’s use of vehicles including trucks, vans, and cars. Commercial auto insurance offers protection against paying for damages and medical costs that may result from vehicle accidents, vandalism and damage from hail storms and other natural disasters. Coverage for employees in the Alaska area includes a variety of vehicles including those that are rented, owned, leased, or hired by the business owner, as well as employee-owned vehicles used for work-related duties. Because of this reason, it’s recommended that companies purchase a commercial auto insurance policy if employees use their personal vehicle for work operations; this is called non-owned commercial auto insurance.
Commercial umbrella insurance in Alaska is beneficial to firms due to the coverage limits of their existing liability policies, and since they generally don’t cover all expenses in the case of an unexpected and catastrophic event occurs. Umbrella insurance fills the gap between where the general liability and the commercial auto insurance or other liability insurance stops. Commercial umbrella insurance for staff in the northwest state of Alaska is an important resource that fills in the gaps in their main business liability coverage. Umbrella insurance is a helpful way to have added protection for property damage, bodily damage, or other types of liabilities.
Some Additional Business Insurance Coverages in Alaska to Consider
Errors and Omissions insurance policies offer Alaskan employers and workforce protection against claims and lawsuits made by clients or customers for careless duties and acts, mistakes, and oversights made through various business operations which resulted in lost wages or output on the part of the client or customer. Errors and Omissions insurance in Alaska cover legal defense and court costs for business owners, as well as settlements as stated on the insurance contract. As doctors require malpractice insurance to protect themselves, owners of small enterprises in the state of Alaska should have errors and omission insurance, primarily if they offer consulting advice or services, whether they do so directly or through the hiring of contractors.
Professional liability insurance in Alaska provides security for employees, such as compliance analysts, contractors, and CPA’s, from being responsible for paying the legal cost of defending against errors, claims of negligence, failure to perform, or omission which was made by a client, along with damage owed in that claim. The coverage’s primarily focus is on the financial loss on the part of the client from this type of Professional liability insurance, even if the legal actions turn out to be unfounded. Professional liability insurance in the state of Alaska is required by law in a variety of professional industries, including medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance (EPLI), gives business executives protection against claims of discrimination, unlawful termination, sexual harassment, breach of contract, income violations, false imprisonment, emotional grief, defamation, slander, mental distress, careless hiring and promotion decisions, and offensive claims. Employment practices liability insurance in Alaska is based on the laws, acts, and protection from VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act; the Equal Opportunity Employment Commission (EEOC) enforces all of these laws.
Fidelity Bonds in Alaska
Fidelity bonds in Alaska are a type of insurance offered to employers in order to protect against losses, like fraud, embezzlement, or theft by one or more workers. Since compensation from employee fraudulent acts is usually not possible due to the cash already being spent, fidelity bonds are an important security measure for Alaska-based entities that would otherwise have to suffer these financial losses. Even if your company has extra security against this type of fraud, such as employee screening, close supervision, and internal controls, it doesn’t always prevent these things from occurring. Losses accrued from employee thefts of money, property, or securities are all covered under fidelity bonds insurance in Alaska. There are three major types of fidelity bonds; business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Alaska
A surety bond is a noteworthy contract or agreement shared between three parties: the principal, obligee, and surety (insurance company). The surety bond acts as a promise that the party will pay an agreed upon dollar amount if one of them fails to meet a commitment, such as fulfilling the terms of the contract. A surety bond protects the beneficiary from financial burden if the contract is not fulfilled, while the surety company takes on the liability for not performing. A surety bond is typically required for financial reimbursement. Owners of small businesses in the state of Alaska may require a surety bond to guarantee payment of utility bills or state sales taxes, while a contractor may need to post a bond to guarantee work or be qualified for licenses. While surety bonds in Alaska are usually in the construction industry, surety bonds are also used by mortgage brokers, automobile dealers, medical suppliers, health club owners, notary publics, and others. Since many small businesses need bonds, a variety of types and features of surety bonds in the state of Alaska offer a range of guarantees.
If you own and operate a small business in Alaska, it is crucial that you obtain the proper business insurance policy. If you operate a ski resort in Anchorage, a gift shop in Fairbanks, or another type of small business in the state of Alaska, you should be secured with supplemental business insurance. While you may currently have the standard business insurance policy which is expected by Alaska-based businesses, it may only cover basic liabilities. In the case of a fire, natural disaster, damage from extreme weather conditions, theft, or other unfortunate event, additional business insurance policies can provide extra protection for your business and assets.