Workers’ Compensation & Insurance Study

In Alaska, businesses face some of the highest insurance premiums for workers’ compensation coverage in the nation. Every business with employees is required to carry this insurance, and rising medical costs in the U.S. are expected to exacerbate this issue for Alaska-based businesses.

Understanding the impact of these costs is crucial. For example, in 2011, it was reported that 76% of all workers’ compensation funds were allocated toward medical benefits, a number significantly higher than the national average. This cost burden is predicted to grow.

As a business owner, it’s essential to understand your Experience Modifier (MOD), which influences your workers’ compensation premiums. Safety should be a priority—reducing workplace injuries directly impacts insurance costs. Additionally, reviewing your company’s payroll history may help lower estimated payroll figures and subsequently reduce premiums.