As a state that's heavily focused on resource development, Alaska is known for having some of the most hazardous industries. These specialized industries employ various types of insurance to protect their operations, employees, customers, and the general public.
No two businesses are identical and every operation has its own insurance exposures and risks. However, there are some core elements of insurance programs that traverse industries.
Most companies in Alaska--regardless if they're involved with resource development--utilize some type of liability coverage, workers' compensation, property, and commercial auto insurance.
"The policies, themselves, can be endorsed with specific coverages necessary for each client's exposure," says Christopher Pobieglo, president of Business insurance Associates. "You can also layer in additional coverages, such as professional liability, employment practices liability, or cyber liability, depending on the exposure of those businesses."
State-mandated workers' compensation insurance is the most commonplace insurance for businesses in Alaska. It protects workers and employers from some of the losses caused by job-related accidents and illnesses. Under the Alaska Workers' Compensation Act, all employers with at least one full- or part-time employee must purchase and maintain workers' comp policies to cover their employees.
Liability insurance is a part of the general insurance system of risk financing designed to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured company if it's sued for claims that come within the coverage of the insurance policy.
There are different kinds of liability insurance, and the type a company chooses will depend on the nature of the business. Some of the most common kinds of liability coverages are general liability and professional liability (also known as errors and omissions). General liability provides coverage for bodily injury, personal injury, and property damage caused by the company's operations. Professional liability insurance helps protect entities that provide professional advice or services against bearing the full cost of defending against a negligence claim.
Property insurance provides protection against most risks to property, such as fire, theft, and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, and earthquake insurance.
Commercial auto insurance, as the name indicates, provides liability and physical damage coverage for vehicles used by a business, including cars, vans, commercial trucks, and other types of vehicles. It covers injuries that the owner or employees may cause to other people and their property while driving. And a typical commercial auto policy may include liability coverage.
Cyber liability insurance helps cover costs associated with the liability of a claim or suit related to a cyber attack or data breach. This type of coverage, often called cyber risk insurance, is growing in use with the constant increase in cyber security threats. Cyber security is a big exposure because almost every business has an online presence.
Umbrella insurance is a key type of insurance for Alaska businesses that need more coverage to protect their assets. Essentially, umbrella insurance is extra liability insurance that offers additional protection for losses that are not covered by the other policies. Typically, an umbrella or excess policy goes over the general liability, workers' comp, and other insurance, according to...