Alaska Internet Business Insurance

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Alaska Internet Business Insurance Policy Information

AK Internet Business Insurance

Alaska Internet Business Insurance. Conducting business on the internet can be very lucrative, but many people go into internet businesses with the false notion that they don't need the same standard insurance coverage that traditional brick-and-mortar businesses require. The truth is that although the internet has changed the way that we do business, protecting an internet business is as essential as protecting a traditional business.

The internet has revolutionized the way we do business; prior to the advent of the internet, businesses needed a physical location to conduct business. Today's businesses often begin with simply an idea about how to make money, a good business plan, and a web presence. Customers now shop, bank and perform other simple errands on the internet, and they are turning to the internet to help them do product research as an alternative to shopping around. Around 40 percent of smartphone owners in the United States compare prices on products they need while they are shopping.

Alaska internet business insurance protects your online business from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.

While owning an internet-based business cuts your overhead, there are still inherent risks for IT companies and their owners. A large portion of them face consolidation and competition, many of them fail to market and develop new products, and a big number of them face intellectual property infringement.

Operation of an AK IT business or any internet-related business puts you at specific risks that may not be an issue in a regular brick-and-mortar location. You probably handle digital assets, social media and email, but you may also be privy to sensitive data belonging to other people and companies. Even if you are operating a web-based business, the laws that apply to trademarks, slander, libel and copyright still apply. This is why you should have Alaska internet business insurance.

Business Insurance for IT Companies

Some insurance companies hesitate to provide internet companies with Alaska internet business insurance due to the liability issues that exist for these businesses. Bear in mind that even a standard business insurance policy is unlike to prove the protection that you will need if your business is ever faced with an accusation of copyright infringement, data loss or breach of data. Only Alaska internet business insurance can afford this protection. Liability insurance for AK technology companies protects against several perils, including:

  • Industrial espionage
  • Hacking and liability and cyberspace
  • Computer viruses
  • Data loss
  • Data breaches
  • Denial of service or DOS attacks

Many insurance companies face a lack of reliable information about the risks that AK web-based companies face. New developments are continually evolving that provide benefits to internet-based business and tech companies, and these developments often put these types of businesses at enhanced risk and add to their costs. Insurance companies typically have no real way to calculate the true potential costs of cyber perils, so they write Alaska internet business insurance policies for companies with their own interests in mind.

IT Liability Insurance Advantages

Determining your exact risks as the owner of an IT company, tech business or internet-based business can be hard. Launching a business online, whether from an office or your home, involves a number of perils that you would go beyond the norm. For instance, if you build a website, you have the same liability legally as a magazine or newspaper, although you may not treat the content of the business he same. This is why AK internet or IT business insurance is so important. Some of the scenarios in which an internet business insurance may help include:

  • An employee of your business places an image that is copyrighted onto your homepage without getting the consent of the image's owner.
  • A copyright has already been established for the name of your website or business.
  • An employee of your online business writes remarks about the competition in a press release or online forum.
  • Your site is hacked and your operations are shut down without your control, interrupting business.
  • An angry employee manipulates or breaches customer payment info.

Alaska internet business insurance can give your business critical protection and reduce your exposure to financial loss from claims resulting from incidences such as these. You can reduce those risks by conducting security audits to mitigate weaknesses in your server or network. You can also establish procedures to prevent breaches from hackers by maintaining a firewall and password guidelines. Remote backup storage for your server is also a good way to stave off attacks.

Choosing Internet Business Insurance That's Right for Your Business

Although your internet business may not be at risk for many of the perils that AK brick-and-mortar locations experience, the threats are nonetheless real. Choosing a policy that looks at all the ways you can find yourself on the receiving end of litigation can ensure that you're protected. Discussing your unique business with a trusted agent can help you prepare for the unseen cyber threats that face your business and threaten its success.

Alaska Economic Data, Regulations And Limits On Commercial Insurance

Made In Alaska

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 Information Technology & Internet Insurance

Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.


Information Technology And Internet Insurance

Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.

For information technology companies, like some of the more popular ones listed below, data security is paramount:

Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.

The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.

Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.

Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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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.

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