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Alaska Bill Increases Insurance Reimbursements for Injured Commercial Fishermen

by Celia

Injured commercial fishermen and boat owners in Alaska will benefit from higher insurance reimbursements following the enactment of Senate Bill 93, which was signed into law last month.

Sponsored by the Senate Labor and Commerce Committee, chaired by Nikiski Republican Sen. Jesse Bjorkman, the bill targets the fishermen’s fund. This fund, established before Alaska attained statehood, assists commercial fishermen injured while working. It is financed through fees from commercial fishing licenses.

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“The Alaska fishermen’s fund reimburses licensed fishermen and boat owners for their out-of-pocket medical costs if they are injured or have a qualifying illness while fishing off-shore or engaging in fishing-related activities on-shore,” Bjorkman stated during a hearing.

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In 2023, the council managing the fund proposed increasing the maximum payout from $5,000 to $10,000 to better align with the insurance deductibles of many vessel owners. In response, fishermen requested an increase to $15,000, which was adopted by the Senate Labor and Commerce Committee.

“Even with the $15,000 maximum, the projected disbursements from the fund will keep its balance very stable,” explained Bjorkman’s staffer Laura Achee during a March 2023 hearing. “This raises a philosophical question about balancing the fund’s health with its purpose to serve the fishermen it was created for.”

The bill also aims to encourage boat owners to obtain Protection and Indemnity (P&I) insurance policies.

Representatives from the state’s division of workers’ compensation, which oversees the fishermen’s fund, testified that past reimbursement rates suggest the fund can sustainably support the increased maximum payout.

During public testimony, Tracy Welch from the trade group United Fishermen of Alaska voiced support for the bill.

“The fund is very healthy. It’s paid for by fishermen, for fishermen. This bill helps fishermen facing high deductible costs,” Welch said. “Some owners are dealing with deductibles of $10,000 to $15,000. This bill provides support and incentivizes holding P&I insurance for the benefit of them and their crews.”

In addition to raising the reimbursement limit, the bill now includes viral illnesses among the conditions eligible for payouts.

After another hearing in the Labor and Commerce Committee and the corresponding House committee, the bill passed the Senate unanimously in May 2023. It then passed the House with a vote of 39-1. Governor Mike Dunleavy signed the bill on April 23, and it took effect immediately.

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In a press release, Bjorkman expressed gratitude for the bill’s enactment.

“As insurance policies have increased in price, operating costs have risen, and labor shortages have impacted bottom lines, many owners have opted for policies with higher deductibles to control costs,” the release stated. “This bill supports vessel owners by providing equity for crew members across the industry, potential cost savings, and protection against losses, enabling owners to cover injury or illness without risking their entire operation.”

Bjorkman emphasized that the bill should have no financial impact on the state.

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