If you run a business and have employees, you’ll need to purchase Nevada workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including Nevada, with some exceptions. It helps pay your employees’ medical bills if they sustain an injury on the job. And limits your liability for workplace accidents, is a requirement in most states, including Nevada, with some exceptions.
Workers’ compensation insurance in Nevada generally costs around $0.89 per $100 of covered payroll. That means, for example, if your company’s annual payroll is $100,000, you would pay $890 for workers’ compensation insurance, or around $74 a month. These rates can vary, though, depending on a number of factors.
One of the biggest factors in determining your rates for workers’ compensation insurance is your employees’ risk, or the likelihood of a workplace injury occurring at your business. To assist insurers in determining risk exposure, and to get the best rates for your business, you can use a variety of workers’ compensation class codes. This is important because it costs more to insure certain employees. For example, office employees may have lower workers’ compensation costs than those who work outside of your office and face more risks.
If an employee sustains an injury on the job or becomes ill due to workplace conditions, workers’ compensation in Nevada will help them with their medical bills. The average weekly wage of the employee determines the workers’ compensation benefits. The amount depends on the type of claim.
In general, workers’ compensation in Nevada covers:
- Accidents and injuries – If your employee needs medical attention, workers’ compensation will cover any medical expenses from a workplace injury.
- Illness – If an employee becomes sick from exposure to allergens or other hazardous materials at work, they can also receive workers’ comp benefits to help pay for treatment.
- Repetitive injury – It’s not just accidents that are covered: treatment for repetitive injuries, like carpal tunnel syndrome, are also covered by workers’ compensation.
- Ongoing care – If your employee still has medical needs as a direct result of their accident or illness, even after they return to work, they can get benefits for ongoing care. This includes additional doctor’s appointments or additional surgeries.
In addition, if their accident or illness results in permanent or temporary disability, your employee will receive weekly or lump sum payments. If they have a temporary disability, their injury prevents your employee from performing their job. But they can return to work as normal once they recover. If a doctor diagnoses them with an injury from which they will not fully recover, they have a permanent disability.
These categories fall into the following classifications:
- Temporary total disability (TTD) – These payments will be made if your employee is not able to work at all while recuperating.
- Temporary partial disability (TPD) – TPD payments will be made if your employee can still work, but only with certain limitations, such as needing to perform lighter duties or work fewer hours. If your company does not provide work that meets these requirements, the employee may still be eligible for these payments.
- Permanent total disability (PTD) – Employees who are unable to work due to an accident or illness, even after they have recovered as much as they are likely to, will be eligible for PTD payments.
- Permanent partial disability (PPD) – Employees who have permanent difficulties but can work with them will be eligible for PPD.
Nevada’s Workers’ Compensation Death Benefits
If an employee passes away as a result of a work injury or illness, surviving dependents could qualify for death benefits.
Surviving dependents can include:
- Children under the age of 18
- Children under the age of 22 who are a full-time students
- Children of any age who are unable to support themselves
- A spouse
If the deceased worker had no spouse or children, benefits could be awarded to their dependent parents or minor siblings, as well as other family members who were dependent on your employee for financial support.
The deceased worker’s spouse is entitled to 66% of the worker’s average monthly wage, up to a yearly maximum. This benefit is intended for the spouse and children; it will be divided if the spouse is not the parent of the children. In that case, the spouse would receive half of the benefit, while the children would receive the other half.
Workers’ compensation benefits also cover burial expenses up to $10,000.
Nevada’s Workers’ Compensation Laws
According to Nevada law, any person, firm, voluntary association, private corporation, or public service corporation that hires employees has to carry workers’ compensation insurance. An “employee” is defined as anyone who is hired by an employer or under a contract of hire or apprenticeship.
Casual employees who work for less than 20 days for a total cost of less than $500 are exempt from this requirement if the employment is not in the normal course of your trade, business, profession, or occupation.
Unlike most other states, Nevada does not exempt self-employed, independent contractors, subcontractors, and their employees from workers’ compensation requirements. They count as employees unless they are an “independent enterprise.”
How to Buy Workers’ Compensation Insurance
Most businesses in Nevada buy private workers’ compensation insurance from an insurance company in the state. EZ’s agents can help you compare insurers and policies to find the best coverage for you.
Another option is to self-insure your claims. This means that your business will pay out-of-pocket for workers’ compensation claims as they arise, rather than paying a premium and submitting claims to an insurance company.
If you wish to become self-insured, you must first file an application with The Self-Insured Workers’ Compensation Section of Nevada’s division of insurance. In order to become and continue to be eligible to be a self-insured employer in Nevada, you must satisfy a $2.5 million tangible net worth criteria.
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How to Get the Most Savings
The majority of the cost of workers’ compensation comes from factors beyond your control. However, there are still ways to save. Implementing a safety program is a great way to reduce workplace injuries and claims, which will lower your premiums. So regardless of your industry, it is important to have safety and standard operating procedures in place. Employees who have safety training are less vulnerable to injuries, lowering your workers’ compensation costs.
It is also a good idea to regularly review your claims history. Evaluating your claims history on a regular basis can help you identify and correct patterns. You might discover that certain aspects of your business operations are frequently causing claims. This allows you to adjust the operation to make it safer. You can save money by keeping an eye on potentially dangerous operations.
Correctly classifying your employees is one of the most effective ways to save money. When you apply for your workers’ compensation policy, you will classify each of your employees depending on their job’s risk. And this risk classification influences the cost of your workers’ compensation. For example, you might pay less to insure an office worker than you would a manual laborer. It’s also important to correctly classify your employees because you may receive a fine if you fail to do so.
Begin a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. insurers. EZ’s agents specialize in insurance for a wide range of small businesses. Working with our agents can save you hundreds of dollars a year on coverage.
Nevada Workers’ Compensation FAQs
Are you required to have workers’ compensation insurance in Nevada?
The law requires any business with employees to carry workers’ compensation insurance in Nevada, unless otherwise exempt. In Nevada, failure to maintain workers’ compensation insurance is punishable by a fine of up to $15,000, premium penalties, and a stop-work order until you secure insurance.
Additionally, if you don’t have workers’ comp, you will be financially responsible for any workplace injuries that occur. You could even be charged with a crime if a work-related injury leads to significant physical harm or death.
How do workers’ compensation settlements work in Nevada?
The majority of states make weekly payments for workers’ compensation settlements. In Nevada, only two types of benefits—permanent partial disability benefits and vocational rehabilitation benefits—are eligible for lump-sum payments.
What is the statute of limitations in Nevada?
It is advised that an injured employee tell you about their injury as soon as possible, but state law calls for notice to be given within seven days. If your employee misses work due to the illness or injury or sought medical attention, they have 90 days from the date of the injury to file a form to the state. Survivors have one year from the date of the worker’s death to file a Nevada workers’ compensation claim if the workplace injury results in death.
Why Use EZ
We do everything in our power to make shopping for workers’ compensation insurance as easy and stress-free as possible. And we give each of our customers our undivided attention. As soon as you fill out our form, you will receive instant, free quotes from your dedicated agent. Who will give you personalized service and will work to understand your needs. We want to ensure that you get the best coverage at the best price. Our services are completely free so check out your quotes today!
If you still have questions, feel free to give us a call at 877-670-3538. You will speak to a local insurance agent who can answer all of your questions. And help you find the workers’ compensation policy that works best for your business.