If your Alaska partnership has employees, yes, it must carry workers compensation insurance, but the partners themselves are not required to be covered as long as they are the only people doing the work. Alaska treats partners much like sole proprietors: with no non-owner staff, the partners are left off coverage by default and may choose to opt in for their own protection. Every non-partner employee, on the other hand, must be covered from day one, with no headcount minimum.
Who this is for: Partners in an Alaska general partnership, from a two-person professional firm to a partnership with a payroll of employees.
The short version
- A partnership with employees must carry workers comp; there is no headcount minimum.
- Partners who do all the work are not required to cover themselves and may opt in.
- Any non-partner employee must be covered from the first day, part time or full time.
- Opting a partner in adds their earnings to the premium but gives them comp for a work injury.
- A partner who stays off should arrange other coverage, since a health plan may not pay for a work injury.
How Alaska treats partners
Under the Alaska Workers' Compensation Act, partners are the owners of the business, not its employees, so a partnership whose only workers are its partners is not required to buy a policy for them. This tracks how the state treats a sole proprietor: the owners are off coverage by default and opt in if they want it. Partners who want comp to pay their own on-the-job injuries arrange to be included on a policy, and their share of earnings is rated into the premium. The picture changes the instant the partnership pays anyone who is not a partner, because that person is an employee who must be covered.
| Who | Covered by default? | What to know |
|---|---|---|
| Non-partner W-2 employee | Yes | Covered from day one; cannot be excluded |
| General partner doing the work | No, off by default | Not required to be covered; may opt in for their own injuries |
| Partner who has opted in | Yes, by choice | Earnings rated into the premium; comp pays their work injuries |
| Partnership with no employees | Partners only | No policy required by law, but a contract may still call for one |
Whether partners opt in
Because partners are off coverage by default, the decision is whether any of them opt in. Bringing a working partner onto the policy means comp pays if that partner is hurt on the job, which matters most for partners who do physical or field work. Leaving a partner off keeps their earnings out of the premium, but it removes their comp protection, and a health plan may not cover a work injury. A desk-bound partner in a professional firm is a more natural candidate to stay off than a partner who is out on job sites. Whatever the partners choose, any employee the partnership hires must be covered from the first day.
Why a partnership carries a policy anyway
Even a partnership with no employees often ends up buying coverage. Clients, landlords, and larger firms routinely require proof of coverage before they will sign, and a policy is frequently the price of the contract. And once the partnership hires its first employee, coverage is mandatory. Carrying a policy also protects the partnership: if it fails to carry required coverage, it loses the usual protection and an injured employee can sue the partnership directly for damages.
A Palmer example
Illustrative, not a quote. Two partners run a Palmer accounting firm with three employees. The three employees must be covered from day one, and both partners are off coverage by default because they are owners doing the work. Because they sit at desks and face little injury risk, they leave themselves off to keep the premium down, while the three employees stay fully covered. When a commercial client asks for proof of coverage before signing an engagement letter, the firm hands over a certificate the same day. See our workers comp for accounting firms page.
Real questions Alaska owners ask
Does our Alaska partnership need workers comp?
If it has any non-partner employees, yes, from the first one, with no headcount minimum. The partners themselves are not required to be covered as long as they are the only people doing the work.
Are partners covered by default in Alaska?
No. Alaska treats partners like sole proprietors, so partners doing all the work are off coverage by default. A partner who wants comp for their own injuries can opt in through the policy.
How does a partner get their own injuries covered?
The partner arranges to be included on the partnership's policy. Their share of earnings is then rated into the premium, and comp will pay their on-the-job injuries, which a health plan may not.
Should our partners opt in?
It depends on the work. A partner who does physical or field work usually opts in, since comp pays for a work injury a health plan may not. A desk-bound partner is a more natural candidate to stay off.
Do we need a policy if the partnership has no employees?
Not by law for the partners alone, since they are off by default, but clients and landlords often require proof of coverage before they will sign, so many partnerships buy a policy anyway.
Is a partner treated like an LLC member in Alaska?
Not exactly. A partner is off by default like a sole proprietor, while an LLC member is exempt only at 10 percent ownership or more. A member under 10 percent must be covered.
What if our partnership does not carry required coverage?
Alaska can impose penalties and stop the work. The partnership also loses its usual protection, so an injured employee can sue it directly instead of being limited to a comp claim.
Why Alaska owners choose Morrow
- We shop the right market for you. In Alaska you buy workers' comp on the open, competitive market from a private insurer authorized by the state, because Alaska has no state fund and no opt out, and if no carrier will take you the NCCI-run assigned risk pool is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Alaska guides
Every Alaska business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Alaska (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Alaska accounting firm workers comp
This guide is general information, not legal advice. Alaska rules and penalty amounts can change, so verify current requirements with the Alaska Division of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.