Workers’ compensation insurance is state-mandated coverage that pays expenses associated with on-the-job injuries and occupational illnesses. Workers’ comp typically covers partial lost wages, medical bills, and survivor benefits. In Nevada, employers are required to carry workers’ comp when they have one or more employees and costs between $0.71 – $8.88 per $100 of payroll.
The Hartford is our top recommended small business insurance company. They offer monthly payment plans and a network of preferred medical providers to help your employees get back to work fast. Small business owners can quote workers’ compensation insurance with The Hartford through a simple online application that can be completed in as little as 10 minutes.
Top Nevada Workers’ Compensation Insurance Providers
|The Hartford||Employers who want fast quotes for broad workers’ comp and affordable payment plans|
|AP Intego||Employers who want to avoid paying additional premium after their workers’ comp audit|
|Employers||Restaurant owners who qualify for discounts through the Nevada Restaurant Association|
|Insurance Company of the West||Employers who want to lower their premiums through safety programs|
|Insurance321||Employers who want to get workers comp but don’t have time to compare rates|
Here are five leading workers’ comp insurance companies in Nevada:
The Hartford is a national carrier that provides workers’ comp policies for businesses of all sizes. Their small business option starts with a basic plan that includes six additional coverages that many other insures don’t offer. Highlights include coverage for employees and volunteers when state law doesn’t require it, as well as reasonable defense expenses for employers who are sued.
Business owners who want payment options for broad coverage should consider The Hartford. Their options include either a monthly payment plan to help manage cash flow or an upfront premium that comes at a discount. The online application returns quotes quickly and employers can get coverage in place in as little as five minutes.
AP Intego is an online insurance agency founded exclusively to help business owners arrange small commercial policies. The company offers all the essential business policies though a digital application that is simple and easy to complete, and can quote top carriers in all 50 states regardless of your individual business needs.
AP Intego is the ideal choice for employers who want to use their pay-as-you-go service to simplify workers’ comp insurance payments. The company is able to set premiums based on policyholders’ actual payroll and deduct the appropriate amount automatically through partnerships with payroll services like Gusto, Execupay, and Square,
Employers is an insurer that focuses exclusively on workers’ compensation insurance for small businesses. They been providing cost-effective workers’ comp for over a century, and have acquired deep experience that helps them understand the unique risks of small business owners in various industries. What’s more, Employers is headquartered in Reno, so they know Nevada’s workers’ compensation laws inside and out.
Employers is the best choice for Nevada restaurant owners—especially quick service and fast food. They have some of the most competitive workers’ comp rates for the food services industry and are the preferred insurer for the Nevada Restaurant Association. In addition to hazard analysis, safety training, and flexible payment plans, Nevada Restaurant Association members get a 5 % credit towards their premiums.
Insurance Company of the West
Insurance Company of the West (ICW) is a top workers’ compensation insurance provider in Nevada, landing in the top five for workers’ comp market share of all insurers in the state. Their primary focus is on helping policyholders reduce workers’ comp claims, and they offer monthly, quarterly, or yearly payment plans.
ICW is ideal for small business owners looking to lower their workers’ comp premium. Through expert safety consultations, management training tools, and claims management services, ICW has helped employers reduce their claims frequency, claims cost, and experience modifiers. Together, these reductions have a major impact on workers’ compensation insurance premiums.
Insurance321 is an online insurance marketplace that helps small business lines find the providers who can write their commercial policies. Business owners submit their contact information so Insurance321 can match them to the best insurance partner for their specific needs.
This service makes Insurance321 the best choice for busy employers who don’t want to spend a lot of time shopping around for workers’ compensation insurance. Because Insurance321 matches employers with the best local provider to write their policy, business owners are able to skip the research, application filing, and quote comparisons typically required when shopping for insurance.
What Workers’ Compensation Insurance Is
Workers’ compensation insurance is policy that reimburses employees for job-related injuries and illnesses regardless of who’s responsible. State’s workers’ comp requirements vary greatly, but policies typically pay replacement wages, medical bills, and benefits to survivors if the employee dies. Since workers’ compensation is considered an exclusive remedy, employees give up their right to sue their employers in most situations.
While it is typically an exclusive remedy, employees can sue their employers in certain cases. For example, employees may sue for workplace injuries if they believe their employer acted intentionally or negligently. Workers’ compensation insurance has a second coverage called employer’s liability, which pays for the employer’s legal defense in these situations.
What Workers’ Compensation Insurance Covers
Workers’ compensation insurance policies typically cover injuries and illnesses when they occur in the course of employment. Depending on the state, that can include injuries from a sudden accident, repetitive physical or emotional stress, and exposure to harmful materials. Some states also include psychological injuries.
Injuries aren’t covered by workers’ comp if they are the result of certain actions, such as:
- Horseplay or fighting – For example, a homebuilder in Henderson may not receive benefits if their fall was the result of a prank.
- Drug or alcohol use – Workers’ comp most likely won’t cover injuries to salesperson from Lake Tahoe who trips in the office after a three-martini lunch.
- Improper or inadequate safety equipment – A Reno welder who chooses not to wear safety goggles may not be compensated for their eye injuries.
But not all injuries that occur at work are compensable. Employees only receive benefits when their injuries are connected to their job tasks. For example, a construction worker might receive compensation for a back strain if they can demonstrate heavy lifting at work caused it. However, they may be out of luck if the injury occurred at home.
Additionally, workers’ comp may not pay out for injuries suffered during work-sponsored events when they are voluntary and for the employee’s benefit, like a holiday party or company picnic.
What Nevada Workers’ Compensation Insurance Covers
Workers’ compensation in Nevada covers most occupational illnesses and injuries. These typically include injuries from sudden trauma or repetitive use, and disease stemming from work-related exposure to hazardous materials. If these injuries occur in the workplace in the course of employment, the employer’s workers’ comp insurer pays benefits.
Nevada workers’ compensation insurance typically pays for expenses including:
- Doctor and hospital services
- Medication and medical equipment
- Physical therapy
- Mileage to and from medical providers
- Ongoing nursing services
- Burial services
- Two-thirds of the employee’s weekly wages
While workers’ compensation is required in Nevada, it’s not the only coverage employers need to fully protect their assets. They should also consider getting a business owner’s policy to cover the costs associated with property damage and third-party lawsuits.
Nevada Workers’ Compensation Insurance Costs
Insurers use three factors to determine premium: risk, employee compensation, and claims history. Employees are assigned a class code with a rate based on the work they perform. These class codes are multiplied by payroll and an experience modifier that represents the company’s claims history. Nevada employers pay between $0.71 and $8.88 per $100.
Below is the basic formula for determining workers’ compensation insurance costs:
Payroll (per $100) x Employee Classification Code x Employer Experience Modifier = Premium
Nevada uses the classification codes developed by the National Council on Compensation Insurance, as do most states. But that’s only part of the equation. Workers’ comp premiums still vary between insurers because of the experience modifier.
The experience modifier (e-mod) is a number that represents claims history. Essentially, insurers compare the payrolls and claims of similar businesses and assign a number to demonstrate the comparison. If your business appears roughly the same as others, it’s assigned a one. Fewer claims, and your e-mod (and therefore your premiums) may go lower. Every insurer develops its own e-mod formula, so it’s a good idea for business owners to compare rates from multiple insurers.
Nevada Workers’ Compensation Insurance Audit Requirements
Workers’ comp insurers traditionally use an estimate of your payroll to determine your annual premium. However, that estimate may change as you hire people and fire people during the policy term, so insurers conduct premium audits to make sure you’re charged the correct amount. Depending on the results, you get money back from the insurer or be billed for any shortfalls.
Documents to gather in preparation for a workers’ compensation insurance audit include:
- Payroll records
- Business checkbook
- Federal and state tax information
- Employee time cards and job descriptions
- Payment records for casual labor
- Subcontractors’ certificates of insurance
- Experience modification worksheets
One way to reduce the stress of a premium audit is to work with a workers’ comp provider that offers pay-as-you-go plans, like the one offered by AP Intego. Their platform integrates with your payroll service provider, so your monthly premiums are based on your actual payroll, rather than an estimate.
Nevada Workers’ Compensation Insurance Laws
Nevada workers’ compensation law requires employers to get coverage if they have one or more employees, unless they’re specifically excluded. In Nevada, an employee is defined as any person who works in the service of an employer and can include immigrants, minors, paid public officials, and paid board members. Contractors may have to cover subcontractors and independent contractors.
The Nevada Division of Industrial Relations, Workers’ Compensation Section specifically excludes the following employees:
- Casual employees whose work is not in the trade, business, occupation, or profession of the employer
- Theatrical or stage performers or individuals employed in an exhibition
- Musicians whose services are casual in nature, do not last more than two days, and do not reoccur with the same employer
- Domestic workers, such as nannies, gardeners, and personal assistants
- Farm, dairy, agricultural, and horticultural laborers
- Voluntary ski patrollers whose only compensation is meals, lodging, or use of the ski lift or tows
- Sports officials at the amateur, intercollegiate, or interscholastic levels
- Real estate brokers, brokers-salespeople, or salespeople
- At-home telephone salespeople who work on commission
- Employees involved in interstate commerce entities that are not subject to Nevada state law
- Employees who have private disability or death benefit plans that meet or exceed Nevada workers’ compensation benefits
Sole proprietors, corporate officers, and LLC members aren’t required to carry workers’ comp if they don’t have employees, but they can still purchase coverage for themselves as self-employed individuals if they’d like.
Nevada Workers’ Compensation Insurance Deadlines
Nevada workers’ compensation laws list a number of important deadlines for employers. The most important of these is having workers’ compensation insurance in place the moment employees are hired. However, employers must also meet several other deadlines, including form submissions to report an employee injury or claims filing.
Here is a list of Nevada’s required workers’ comp forms:
- Notice of Injury or Occupational Disease – Incident Report (C-1 Form) – Employees need to complete this form within seven days of the incident. Employers are required to have extra forms on hand and keep completed ones on file for three years.
- Employee’s Claim for Compensation/Report of Initial Treatment (Form C-4) – Medical providers must complete and file this form with the employer and the employer’s insurer within three working days of treating the injured employee.
- Employer’s Report of Industrial Injury or Occupational Disease (Form C-3) – Employers must submit this form to their insurer within six days of receiving a copy of Form C-4.
- Employer’s Wage Verification Form (Form D-8) – If Form C-4 indicates the employee will be out of work for five or more consecutive days or five total days in a 20-day period, employers have six working days to submit this form to their insurer.
Additionally, employers are required to complete and return any blank or incomplete forms to their insurer within six working days should their employee fail to complete them.
Nevada Workers’ Compensation Insurance Requirements
Nevada law requires employers to maintain workers’ compensation insurance coverage even if they have just one employee. There’s no waiting period for this requirement—employers need to have appropriate coverage in place the day employees are hired. In addition to this immediate-coverage requirement, Nevada has several other requirements that employers must meet.
Some Nevada workers’ compensation insurance requirements for employers include:
- Providing a workplace that is free of recognized hazards
- Posting Form D-1 in their place of business or Form D-22 if their employees receive tips
- Having their workers’ compensation declaration page available for inspection by the Division of Industrial Relations or the attorney general at all times
- Providing the appropriate forms for injured employees
- Providing immediate first aid to injured employees
- Completing the Employer’s Report of Industrial Injury or Occupational Disease Form, submitting it to their insurer, and keeping it on file for three years
- Filing an Employer’s Wage Verification Form with their insurer
Employers can be fined up to $1,000 per occurrence for failing to file the appropriate forms within the required time.
Nevada Workers’ Compensation Insurance Penalties
Nevada employers who fail to maintain appropriate workers’ compensation insurance can be charged an administrative fee of up to $15,000. They may also have to pay up to six years’ worth of missed premiums plus interest. These fines are paid to the Uninsured Employers’ Claim Account, which compensates injured workers of employers who fail to carry workers’ comp insurance.
Noncompliance can also result in criminal charges. The first offense is a misdemeanor unless an employee suffers substantial bodily harm or death. In those cases, noncompliance is a category C felony punishable by jail time and a fine of up to $50,000, with subsequent offenses carrying similar punishments.
Nevada Workers’ Compensation Insurance Self-Insurance
In most states, employers can choose to self-insure or join a self-insurance group, in which case the employer or the self-insurance group assumes the responsibility of handling workers’ comp claims and paying benefits. In Nevada, employers need a tangible net worth of $2.5 million to self-insure, so small business owners are more likely to join a self-insurance group.
Nevada currently has nine self-insurance groups. These groups are made up of similar businesses in industries like construction, hospitality, and agricultural. Employers who want more information on self-insurance groups can visit the Nevada Division of Insurance website.
How to File a Nevada Workers’ Compensation Insurance Claim
Nevada workers’ compensation claims are initiated by the injured employee because they are the ones seeking benefits. However, employers also have a number of responsibilities in the claims filing process. Some of the steps employers have to take are triggered by the things employees do first, so business owners need to understand every part of the process.
The general steps for filing a Nevada workers’ compensation insurance claim include:
- Employee files a Notice of Injury or Occupational Disease – Incident Report with their employer within seven days of the incident.
- Employer files an Employer’s Report of Industrial Injury or Occupational Disease and an Employer’s Wage Verification form with their insurer within six working days of receiving an Employee’s Claim for Compensation or Report of Initial Treatment from their medical provider.
- Insurer has 30 days from notification to accept or deny the claim.
The statute of limitations for Nevada workers’ compensation claims is 90 days from the date of accident. After that time, employees may no longer be eligible for benefits as a result of their work-related injury or illness. Survivors of an employee killed as a result of a workplace accident have one year from the death of their loved one to file for workers’ comp benefits.
Tips on Getting Nevada Workers’ Compensation Insurance
A few tips for getting Nevada workers’ compensation insurance include:
Compare Workers’ Compensation Insurance Policies
Employers often assume that there isn’t much wiggle room when it comes to workers’ compensation premiums. However, every insurer factors in their own unique experience modifiers when they calculate your costs. These modifiers represent your claims history and impact how much a provider charges, so employers should work with an independent broker to get multiple offers for comparison.
Manage Your Risk During the Hiring Process
In general, businesses with fewer claims pay less for their workers’ compensation insurance, so employers should do whatever they can to reduce claims. While this typically means setting up safety programs and training, Matt Ross, co-owner of Rizknows LLC in Reno, says risk management should start earlier.
“I think one big thing that employers often overlook is that managing workers’ compensation starts at the hiring process. By asking very pointed questions and conducting extensive background checks, you can make sure you’re hiring the right individuals.”
Classify Your Employees Correctly
Assigning the correct employee classification codes is an important part of controlling the costs of workers’ compensation insurance. If you owned a construction business in Henderson, for example, you would have plumbers and pipefitters working onsite who faced more risk than the workers who stay in the office. While your administrative staff is still working in construction, they are eligible for a different employee classification that comes with a lower rate.
Nevada Workers’ Compensation Insurance Frequently Asked Questions (FAQs)
Hopefully, this article answered your questions about Nevada workers’ compensation insurance. Business owners with additional questions can post them in our forum or in the comment section below. We answered some of the most common questions here.
1. Can an Employee Sue for a Workplace Injury?
Some states allow employees to sue for workplace injuries, but Nevada law makes workers’ compensation benefits reimbursement only available to injured employees. However, Nevada employees can still sue employers for not carrying workers’ compensation or for intentionally causing injuries, like a manager physically attacking a worker.
2. Does Nevada Have a State Fund for Workers’ Compensation Insurance?
Nevada doesn’t have a state fund for workers’ compensation. Employers in the Silver State get workers’ comp through private insurers or by self-insuring. Nevada also has an assigned risk plan for employers who can’t get insurance through traditional means. Any licensed agent or broker can help an employer who has been denied coverage get workers’ comp through the state’s assigned risk plan.
3. Are Workers’ Tips Included in Workers’ Compensation Insurance Benefits?
The Nevada Supreme Court ruled that workers’ tips must be figured into their workers’ compensation benefits in 2012. For tips to be included, the employee needs to report their tips to their employer by submitting an Employee’s Declaration of Election of Report Tips (Form D-23). The declaration must be made each pay period.
Whether you’re a casino owner in Las Vegas or a landscaper in Carson City, workers’ compensation insurance is a must-have in Nevada. Employers are required to carry coverage in most cases, but not all policies are the same. Nevada business owners should work with a reputable workers’ compensation insurer who can offer the coverage necessary to meet their business needs.
The Hartford is one insurer that small business owners should definitely consider using for their workers’ compensation insurance needs. Their basic workers’ compensation policy includes six unique coverages that aren’t even offered by many other providers. Plus, they offer monthly payment plans that help small business owners better manage their cash flow.