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If you own a small business in the Last Frontier State, this information will help you understand Alaska Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Having sufficient general liability insurance is an important part of any small business plan in Alaska.
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If you own a small business in the Last Frontier, this information will help you understand Alaska Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Whether you work in Anchorage, Fairbanks, Juneau, Nome, Ketchikan, Sitka, Wasilla or anywhere else in the Land of the Midnight Sun, having sufficient commercial liability coverage is an important part of any small business plan in Alaska.
A small business is defined as any company with fewer than 500 employees. Small business is vital to Alaska’s economic well-being, accounting for more than 96% of all state employers. Of Alaska’s 68,200 small businesses in 2008 (the latest data available), 15,981 were small employers, accounting for more than 55% of the state’s private-sector jobs. Another 52,219 were one-person operations with no employees.
Source: SBA Alaska Small Business Profile 2011.
Commercial liability insurance (also called business liability insurance and commercial general liability insurance) protects your Alaska business from financial loss resulting from claims of injury or damage cause to others by you or your employees. A policy typically covers:
Commercial Liability Insurance is not mandatory for businesses operating in Alaska. Alaska is a fault state with a pure comparative negligence system. Awards cannot exceed the injured party’s life expectancy in years multiplied by $8,000 or $400,000 (whichever is greater). If it is a severe disability, the award may be multiplied by the life expectancy in years by $25,000 or $1 million, whichever is greater. Alaska statutes of limitations are 2 years for general personal injury, product liability, slander/libel and wrongful death; and 10 years for fraud. Accidents and lawsuits (legitimate and frivolous) do happen in Alaska. If you own property or other valuable assets you would be wise to invest in sufficient commercial general liability coverage for your Alaska business to limit your risk exposure.
Each situation is unique, but as a general guideline, the type of Alaska business you operate or products you manufacture should determine how much Alaska commercial general liability insurance you need. A good rule of thumb for most small businesses is between $500,000 and $1 million. However, if yours is a high-risk business such as the building trades or has a high volume of interaction with the public such as a restaurant or retail business, you should consider increasing your coverage. Note that if you operate out of your home, your homeowner’s or renter’s insurance has limited coverage for business liability and loss.
Alaska commercial liability insurance premiums are based on a number of factors including the types of service or products you provide, the number of people you employ, how long you’ve been in business, and your claims history. Coverage is typically capped at a specific dollar amount for your policy period.
Mandatory
Optional
Alaska Division of Insurance
This agency is responsible for regulating all insurance policies sold in the state, including commercial liability coverage.
| Visit: | www.dced.state.ak.us. |
| Call: | (907) 465-2515 |
| Write: | 9th Floor State Office Bldg., 333 Willoughby Avenue, 99801, Juneau, AK 99811-0805 |
Alaska Small Business Administration
The SBA is an independent agency of the federal government created to aid, counsel, assist and protect the interests of small business concerns and maintains a District Office in Anchorage. Get the link to the Alaska SBA at www.sba.gov.
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. It also offers an online form for filing complaints, reporting suspected insurance fraud and downloading key financial information about insurance carriers at www.naic.org.
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org.
E-Insure
Get competitive quotes for commercial liability insurance and all your business insurance needs at www.EINSURANCE.com/business-insurance.
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