Commercial fishermen in Alaska will soon have a new option to bring down a cost that has skyrocketed in recent years: crew and vessel insurance.
The state legislature passed a bill earlier this year that allows Alaska fisherman to create insurance pools, or co-ops, that typically offer lower insurance rates. The bill became law last week without a signature from Gov. Mike Dunleavy.
The new law was prompted by soaring insurance rates and reduced insurance availability, both of which are among a long list of challenges facing commercial fishermen. Driving the trend: inflation and a shrinking number of companies willing to provide coverage.
“Our seafood industry as a whole is in such dire straits,” said State Rep. Louise Stutes, a Republican from Kodiak whosits on a seafood industry-focused legislative task force that backed the bill.
“We had public hearings on how the state could help the fishermen at little or no cost to the state, because the state is in a fiscal crisis as well,” Status added. “One of the ideas that came up was these insurance pools.”
Many Alaska fishermen already participate in pools that operate out of Washington state. The new legislation gives Alaskans the opportunity to create their own pools by exempting them from costly regulations that apply to private insurers.
The pools provide fishermen an alternative to purchasing coverage from private insurers. Instead, members can contribute a smaller sum of money to the joint pool, which is later used to pay out claims when accidents happen.
The co-ops also pick and choose who joins, which proponents say should reduce both risk and future claims.
“They would choose their members based on their history and whether or not they maintain their vessels, whether they’re safe fishermen, and that type of deal,” she added. “So it will really allow a lot more flexibility insofar as just being able to get the insurance.”
The new legislation will take effect in October.
