Expert answers to all your business insurance questions.
Is workers’ comp required for my Nevada business?
Do you run a business in Nevada with at least one employee? Then the quick answer is yes. You need to buy workers’ comp for your company. It’s the law, it’s the right thing for your employees, and you could get in some serious trouble if you don’t.
Let’s dig a little deeper than that, though, by looking at some common business situations and how workers’ comp applies to each.
You run a Nevada business with at least one employee.
This is the biggest category, so you already know the answer to this one. If you’re a Nevada employer who has hired at least one other person, workers’ comp coverage is mandatory. (This is what can happen if you don’t get workers’ comp coverage.)
Now, this is important: “one employee” means just about any employee — full or part-time — and doesn’t necessarily exclude 1099 workers. In fact, if you hire a contractor to work regular hours doing a job which is in the normal course of your business, you probably need to purchase workers’ comp for them—even if you pay them via a 1099. (Also, if you’re in construction and are considered the “principal contractor” on a project, you’re responsible for either purchasing workers’ comp for your 1099 workers or getting proof that they’re already covered.)
To clarify, let’s look at a few “real world” scenarios. Let’s assume you run a software development company with a small office space and have decided to hire an outside contractor to come in and do a once-a-week cleaning. You decide on a tiny local company with a good reputation and a business license. In this example, you are probably not responsible for purchasing workers’ comp coverage for the contractor—they are a completely separate company and are performing a task that is normally done by independent contractors.
However, if you hire a freelance software developer to work the same hours every week, that worker is probably entitled to workers’ comp coverage. The fact that you give them a 1099 instead of a W2 doesn’t matter—they are helping you perform a core function of your company and, according to Nevada law, you’ve established an employer-employee relationship with that worker. You must purchase coverage for this worker.
If you’re uncertain whether or not to purchase workers’ comp coverage, contacting legal counsel or your online business insurance provider is always a good idea.
You’re a sole proprietor and don’t employ anyone else.
Running a one-person show? Business owners in Nevada are not required to purchase workers’ comp for themselves (although you may choose to purchase it anyway). Of course, while you don’t need coverage for yourself, you will need to purchase coverage as soon as you hire anyone else.
Your business is a corporation or LLC.
The answer is largely the same: all employees must be covered by workers’ comp. However, there’s a big exception—workers’ comp is not required for partners and any corporate officers. If they are already included in your policy, you can exclude them by submitting the appropriate form to your insurance company. (With Huckleberry, it’ll all be done online—and quickly!)
By the way, are there any employees who don’t need to be covered by workers’ comp?
Good question! Yes, there are. Here’s a partial list of who doesn’t need to be covered by workers’ comp:
- Any person whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer (see explanation above)
- Theater and exhibition performers
- Musicians (if their employment is casual and doesn’t last longer than 2 consecutive days)
- Any employee engaged in household domestic service or farm labor
- Clergy members
- Real estate brokers and salespeople who work solely from home and on commission
This list is just a sampling. For the complete rundown, tap here to see the State of Nevada’s list of workers’ comp exclusions. And be sure to ask your insurance company or legal counsel if you’re not sure whether to insure one of your employees.
Got it? Nice. Let’s go back to the The employer’s guide to workers’ comp in Nevada.
Want to know what you’d pay for workers’ comp with Huckleberry? Get an instant estimate. Everything’s online and easy—by far the least stressful way to get workers’ comp (unless you love paperwork).