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Alaska contractors, beware, the government could have its target on you. If you don’t follow a new state law involving contractors and insurance, then you could be opening yourself to some fines and other penalties. The new contractor laws are AS 08.18.011 or AS 08.18.025. They are set up to first and foremost protect consumers from contractors who aren’t properly prepared to do their jobs.

These contractor licensing agreements and laws are set up so that contractors have to have proof that they buy liability insurance, to pay for any errors during work that they may caused through their own fault or by accident. This could also include a bond to pay for any problems with their work, as well as workers’ comp insurance if these contractors also have employees.

As a contractor in Alaska, perhaps you are liable to think you can do business without having to worry about laws that folks down in the rest of the United States have to follow. Or perhaps you are running a small operation and don’t have the capital to pay for liability insurance and workers’ comp, as well as a bond.

But the truth is that no matter how far into the outback you work, or how small your operations are, you should consider the value of insurance. Insurance is set up to protect you from the cataclysmic incident, such as if you burn down somebody’s house or business, or if one of your employee’s suffers a career-ending injury. Those kinds of incidents can end your business, unless you pay your insurance premium. Then you can breathe easier.

Another reason to follow these Alaska contractor laws would be simply because the state of Alaska will come after contractors now that don’t. A new bill in the Alaska legislature, House Bill 81, was signed this summer by the governor. It allows the state to fine contractors up to $1,000 for not following the laws on insurance, bonds, and workers’ comp.

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