In a unanimous vote Friday, the Alaska House of Representatives approved a major boost for the state’s commercial fishing fleet.
House Bill 116, sponsored by the House Special Committee on Fisheries at the request of the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry, clears the way for fishermen to form their own insurance cooperatives- a move aimed at lowering costs and keeping small operators afloat.
The bill, reported by Alaska Native News and the Alaska House Majority, allows commercial fishermen to create insurance pools that are exempt from Alaska’s traditional insurance code. With premiums climbing and insurers increasingly reluctant to cover older vessels, many fishermen have found themselves in a bind. HB 116 offers an alternative path to affordable, industry-specific coverage designed around the realities of working boats and coastal life.
“I am thrilled to see this legislation move from the House floor,” said Representative Louise Stutes (R-Kodiak). “With rising premiums and fewer insurance options, many in our commercial fleet are facing impossible choices. House Bill 116 gives them the tools to build a sustainable insurance model that puts Alaska’s fishermen first.”
The cooperative model outlined in the bill mirrors successful efforts in Washington State and among Alaska’s own municipal governments. By allowing fishermen to share risk among themselves without being bound by traditional insurance regulations, HB 116 creates flexibility- something many in the fleet say they desperately need.
The backdrop for this legislation is a grim one. Alaska’s seafood industry suffered a staggering $1.8 billion economic downturn between 2022 and 2023. According to Alaska Native News, the combination of falling market prices, rising operational costs, and vanishing insurance options has left many vessel owners wondering how they can keep fishing at all.
For operators of older but still reliable vessels, HB 116 could mean the difference between staying in business and tying up for good.
