Alaska Comprehensive General Liability Insurance Policy Information
Alaska Comprehensive General Liability Insurance. CGL is a type of insurance that every business needs to have if it wants to be able to protect itself from the many types of costly claims that it faces. For a business owner the possibility of being found liable for an accident, or a mistake - should be a priority. The scary reality is that all it takes is being found liable for one major issue and suddenly the years of hard work you have put into building your business can be ruined in the blink of an eye. A Alaska comprehensive general liability insurance can help protect your business.
Alaska comprehensive general liability insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
When you run a business there are a wide range of risks that you need to be aware of that could potentially turn into a problematic legal situation. By being proactive and finding a solid Alaska comprehensive general liability insurance policy from a reputable company, you can help to protect your business from future lawsuits.
What Does AK Comprehensive General Liability Insurance Protect A Business From?
No matter what type of business you own and operate you are going to have a product of some kind that you provide to customers. When your customers purchase that product from you there are expectations on their part of how that product will perform. For example if you run a construction business and you build homes, anyone buying a home from your company would expect that it would be well built and that it would be safe to occupy. If there was a mistake made during the construction of that home that caused it to structurally fail, then the owners of that home would be well within their rights to file a lawsuit against you.
At that point your company would likely be held liable for the damages, for any damage to the home owner's property, for the cost of providing temporary lodging to the home owners while they await repairs, and also additional punitive damages for inconvenience. If the structural failure of the home causes an injury, or even worse someone to lose their life, then the penalties would be much more severe.
This is where a Alaska comprehensive general liability insurance policy would come into play, and it could potentially save your business from financial ruin. This type of insurance policy would cover you in the event of a lawsuit of this nature, and it would help you to avoid paying out so much money that it would cripple your business. In addition to the example given above this type of insurance policy will also protect your business from any bodily injury or property that happen on the work site and any most other work related functions that your business performs. AK comprehensive general liability insurance will not cover any company vehicles that your business uses, so you will need a separate policy for this.
How To Choose The Right Insurance Company
For any business finding ways to save money and cut costs is important, since it will help to increase profit margins. With that being said there are certain things that are so essential to the future of your business that you simply cannot afford to cut corners. Alaska comprehensive general liability insurance is one of those areas.
You may be tempted to choose a discount plan with lower payments, but what happens when you actually need to file a claim? Will the company you have insurance through help you with the claims process or will they try to delay having to pay out? What about your deductible amount, is it so high that your business will have a huge out of pocket expense that could cause you issues moving forward? What if the coverage limits are too low?
Going back to the example above if you have coverage for $1,000,000 in damages, and a home your company built has a defect that ends up costing someone their life, that $1,000,000 won't come close to covering what a wrongful death lawsuit would award the homeowner in this case. That means that you will be paying out of pocket for the rest of the damages, which could end up causing you to lose your business. The bottom line here is that you need to do your homework before making any final decisions about which insurance company to use to protect your business.
CGL Policy Help
For you to protect your business you need the right Alaska comprehensive general liability insurance policy. For you to get the right coverage, you must figure out for what risks you want to protect your business against. Talking to an experienced insurance advisor can help. Taking this simple step can protect your business from being destroyed if you are ever sued.
Alaska Economic Data, Regulations And Limits On Commercial Insurance
If you're an entrepreneur who is thinking about starting a business in Alaska, it's important to have a basic understanding of the state's overall economy before you set up shop. Regardless of how high-quality the products and services you are planning on offering may be, if the location where you open your organization doesn't offer a target market that your products and services will appeal to, chances of success are slim. Furthermore, if a workforce isn't available to support your business, you'll have a hard time staying afloat.
With that said, it's important for business-minded individuals who are thinking about starting a company in Alaska to familiarize themselves with the state's economy; it's also a good idea to have an understanding of the commercial insurance requirements.
Following is an overview of economic trends and commercial insurance policies that business owners are required to carry in The Last Frontier.
Economic Trends For Business Owners In Alaska
According to the Bureau of Labor Statistics, the unemployment rate in Alaska was 6.1% in December of 2019. While that's significantly higher than the national unemployment rate, which was 3.4% in December, 2019, it's lower than it was one year prior, when the rate of unemployment was 6.5% in December of 2018. Though the workforce is growing slower than it is in other states, economists do predict that the rate will continue to decline in the coming years.
Despite Alaska's remoteness and cold climate, it's actually a great start to start a business. According to the Tax Foundation, Alaska is the second most tax-friendly state for business owners in the United States, as there's no individual income tax or state sales tax. Additionally, Alaska has the second highest rate of new business owners, as well as the second highest percentage of available employees (as per 2016).
As in most states, the best spots to start a business in Alaska are the state's biggest cities and the surrounding areas. This includes Anchorage, Juneau, and Fairbanks. Other key areas that are seeing a boost in business development in recent years include Homer, Sitka, Prudhoe Bay, and Ketchikan.
While there are several industries that are experiencing growth in The Last Frontier, specific sectors thrive more than others. Businesses that are related to the following industries are booming in AK:
- Fishing, which is also one of the largest contributors to the state's economy.
- Mining, which provides more than 4,500 jobs in Alaska.
- Petroleum, which is responsible for 34% of jobs in the state. In fact, Prudhoe Bay is North America's largest oil field.
- Tourism is the second largest private sector employer in the state. Each year, millions of people from around the globe travel to Alaska to marvel at the numerous natural wonders that can be found here.
Commercial Insurance Requirements In Alaska
The Alaska Division of Insurance regulates insurance in AK. Alaska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alaska requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Alaska also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Crime
- Commercial Package Policy
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Ocean Marine
- Professional Liability
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
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Also find Alaska insurance agents & brokers and learn about Alaska small business insurance requirements for general liability, business property, commercial auto & workers compensation including AK business insurance costs. Call us (907) 531-9001.