National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Nevada

With few exceptions, all private employers in Nevada are required to purchase and maintain workers' compensation insurance.

If an employee is injured on the job, they must complete a C-1 Form (Notice of Injury or Occupational Disease). Employers must make sure that blank C-1 forms are readily available to employees.

Within six working days of being notified of the injury and obtaining documentation from the treating physician, the employer must file a C-3 Form (Employer’s Report of Industrial Injury or Occupational Disease) with their insurance company. Failure to submit the C-3 on time can lead to fines of up to $1,000 per occurrence.

Failure to carry required workers’ compensation insurance in Nevada can lead to penalties, including fines up to $15,000, high insurance premium rates, and a stop-work order until coverage is obtained.

Common Workers' Compensation Claims in Nevada

Every year, there are around 30,000 workers' compensation insurance claims filed in Nevada.

The Top 5 industries with the most claims filed in this state are, in order:

  1.   Education and health services
  2.   Construction
  3.   Trade, transportation, and utilities
  4.   Manufacturing
  5.   Leisure and hospitality

The Top 5 most reported injuries in Nevada are, in order:

  1.   Sprains and strains
  2.   Fractures
  3.   Cuts, lacerations, and punctures
  4.   Bruises
  5.   Heat or chemical burns

FAQ: Workers' Compensation Insurance in Nevada

Workers' compensation insurance is a commercial insurance policy that is designed to protect employers as well as the people who work for them.

It protects your business by shielding your company from financial losses and potential liability lawsuits if one of your employees is severely injured on the job or is stricken with an occupational illness. 

It protects your employees by ensuring that if they are injured on the job, they will have full coverage for all necessary medical care and related expenses and that they will not suffer a large financial setback due to lost wages.

Nevada is among the least expensive states for workers’ compensation insurance. Costs are based primarily on the number of employees you have, how much they are paid, the types of jobs they perform, and your company's history of accidents and workers’ compensation claims. 

Every occupation is assigned a classification code, and each class code is assigned a base rate according to the likelihood that an employee will be severely injured while doing it. These rates are set and managed by the Nevada Department of Insurance and the National Council on Compensation Insurance (NCCI).

Insurance companies are required to use these base rates, but costs can vary from one provider to the next because they are permitted to stay competitive by reducing rates up to 25% through discounts and incentives.

Examples of workers' comp cost ranges per $100 of employer payroll in Nevada:

  • Landscapers:  $4.01 to $6.40
  • Tree Trimmers/Removers/Pruners:  $14.57 to $23.24
  • Plumbing Contractors:  $3.93 to $6.27
  • Retail Store Workers:  $1.06 to $1.69
  • Clerical/Office Employees : $0.19 to $0.30
  • Restaurant Workers:  $0.69 to $1.10

Employers will a solid history of employee safety will pay rates at the lower end, while those whose worker injuries exceed industry expectations will pay rates at the higher end.

Nevada state law requires all employers to carry workers’ compensation insurance. There are a few exceptions. Sole proprietors with no employees do not need coverage. You also do not need to buy coverage for:

  • Household/domestic workers
  • Agricultural or horticultural laborers
  • Employment related to interstate commerce
  • Casual employees

In Nevada, workers' compensation insurance can be purchased from a commercial provider. Coverage is required immediately upon hiring a new employee.

In Nevada, workers' compensation insurance can cover employees if they suffer from the following:

  • Punctures, cuts, and lacerations
  • Traumatic injuries
  • Strains
  • Repetitive motion injuries
  • Certain work-related mental health problems
  • Occupation-related illnesses

Workers’ compensation insurance covers:

  • Medical care: If an employee is injured on the job or is afflicted by an occupational illness, workers’ compensation insurance will cover all of their necessary medical care, including ambulance rides, medications, physical therapy, hospital stays, follow-up care, and supplies like slings and crutches.
  • Disability pay: Workers’ compensation insurance also provides disability pay for employees who need to take more than five days off work to recuperate or who become permanently disabled.
  • Job retraining: For employees whose injuries prevent them from ever returning to their job, workers’ comp can also cover training for a different vocation.
  • Death benefits: In worst-case scenarios, workers’ compensation can cover burial costs and provide the deceased employee’s dependents with ongoing death benefits.

Workers’ compensation covers a lot of worker injuries, but it does have some exclusions.

Workers' comp does not cover:

  • Employee injuries sustained outside of work
  • Accidents that occurred while the injured employee was intoxicated
  • Intentional or self-inflicted injuries
  • Cases the insurance company believes to be fraudulent

It is always a good idea to review what your policy will and will not cover when you make a purchase.

Construction workers and other contractors often have to provide proof of workers’ compensation coverage, particularly if doing work for a governmental entity. This is because their clients want to be certain that they will not be named in a liability lawsuit if a worker is injured while doing a job for them.

If a prospective client asks you for proof of coverage, you will need a workers’ compensation insurance certificate. This certificate is a single sheet of paper that provides information about your coverage, including details like:

  • Name and address of the insured
  • Name of the insurance company and all policy numbers
  • Effective date and expiration date for each policy listed
  • The liability coverage limits on each policy

You will be issued this certificate by your insurance company when you purchase your policy. 

Independent insurance agents make it easy to find the right workers’ comp coverage because they do the comparison shopping for you. These agents cut the jargon and clarify the fine print so you know exactly what you’re getting.

No Nevada business is too small to benefit from the help of an independent agent. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

No. Workers' compensations benefits are not considered taxable income.