Expert answers to all your business insurance questions.
What happens if I don’t buy workers’ comp for my Nevada business?
If you have employees in Nevada, you need workers’ comp—that’s the law. But you might be curious about what might happen if you forget to get coverage. We’re here to give you the details. (If you’ll permit a spoiler, though: Nothing good will happen.)
Let’s go down the list of potential consequences:
You could end up paying a very big bill.
If you get caught running a business without workers’ comp, the Division of Industrial Relations could charge you an administrative fine of up to $15,000 as well as the sum total of all your back premiums (in other words, the amount you would have paid had you been insured). With interest.
You’ll also be held financially responsible for all costs which arise from a work-related injury or illness. If you don’t think this is a big deal, consider the ongoing cost of paying lost wages for the remainder of a disabled employee’s lifetime. Or the cost of a four-month hospitalization in the event of a severe accident at your business.
Frankly, purchasing workers’ comp is a far better financial decision than exposing your business to such significant financial risk.
Your business could be shut down.
If the state of Nevada finds you running a business without workers’ comp, they can order you to stop operations until you’ve complied with the law. Since traditional workers’ comp insurance can take weeks to finalize, this can be a severe hit to your bottom line. (A bit of good news, though: you can usually get a workers’ comp quote through Huckleberry in about seven minutes. So if you’re reading this article because your business has been closed by the state, tap here now.)
You could be charged as a criminal and go to jail.
Nevada doesn’t mess around with this. If your employee gets hurt on the job and you don’t have workers’ comp to cover them, you could be charged with a felony, pay a fine, and serve a jail sentence of up to five years.
Going without workers’ comp in Nevada is just not worth the risk. Get an instant estimate on workers’ comp coverage.
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