Workers’ Comp Insurance in Nevada

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Why You Need Workers’ Comp

You need Nevada Workers’ Comp Insurance because it will protect your employees and your business in the event of illness or injury arising out of the course of employment. The no-fault system guarantees medical and work loss benefits for employees, and in exchange, they surrender their right to sue for damages in civil court.

The no-fault system only requires proof of employment and insurance coverage to trigger benefits for sick or injured workers. Lawsuits can take months or years to provide relief. You gain critical protection for your other business assets; you limit exposure of business capital and personal wealth because the parties agree in advance on insurance protection rather than litigation.

Buying Workers’ Compensation in Nevada

You can buy workers comp insurance in four ways in Nevada. You can buy on the open market, self-insure, join a self-insured group, or buy coverage through the assigned risk pool.

  • 1

    Open Market

    The state licenses a large number of insurers, agents, and brokers that can guide you through quotes for coverage. These firms use underwriting and can be selective when it comes to new firms or forms with significant histories of claims.

  • 2

    Self-Insurance

    You can apply to the Department of insurance by showing the financial capacity to pay your liability and manage the system of claims, and medical care. You may use managed care agencies with state approval. Self-insured individual companies must post security and proof of excess liability coverage.

  • 3

    Self-Insured Groups

    Trade associations and business groups are typical sponsors of group plans. Business in similar fields or affiliated with an organization can pool their resources and liabilities to provide effective coverage at manageable costs.

  • 4

    Assigned Risk Pool

    Firms that can neither buy nor self-insure must get coverage in the assigned risk pool. The designated administrator is the NCCI. Rates tend to be higher than open market rates because of risk.

Instructions for Buying

The Nevada Workers’ compensation Insurance law requires coverage for every employer with one or more part-time or full-time employees. When preparing to purchase workers’ comp coverage, an employer should prepare by gathering information that will make the process go smoothly and successfully. The information includes the below-listed items.

  • Current workers’ comp policy
  • If no current policy, then the last policy
  • The Modified Experience rating, if any, or a loss run
  • List of occupations in the workforce and NCCI codes

What You Should Know About Workers’ comp in Nevada

The Nevada Department of Industrial Relations, Workers Compensation Section administers the requirements for employer coverage and compliance. They can charge non-compliant employers civil penalties of up to $15,000. They can add premium penalties as appropriate, and they can shutter a business until it files proof of compliance. Further, the uninsured business must pay all costs and benefits from a work-related injury that should have been covered by the missing insurance.

Is Your Business Required to Carry?

The rule is that every business with one or more employees must get and keep workers’ comp insurance. There are few exemptions for Nevada businesses.

  • Sole proprietors are excluded but can voluntarily opt in for coverage protections.
  • Partners are treated like proprietors or owners; they are automatically excluded but can opt-in by filing an election form.
  • Corporate officers and LLC managers are included as employees but can elect to opt out of coverage.
  • Independent contractors excluded but employers need to require certification. Without proof, there is a risk of employer liability.

Where to Buy Insurance?

Most firms start with the open market. They try to get insurance for the best possible price from insurance companies licensed to sell workers’ comp coverage in Nevada. If you cannot get coverage on the open market, then you can buy through the NCCI assigned risk pool

Large firms can apply for self-insurance certification. If you belong to a trade group, association, or another business group, you may be eligible to participate in a group self-insurance plan. State law permits groups of like business to join together and form self-insurance group coverage. In Nevada, leading business associations and trade groups sponsor workers’ comp insurance groups for their members.

How Much Does Workers’ Comp Insurance Cost?

The 2014 ranking pf the average of all workers comp fees in Nevada was $0.98 per $100 in payroll, and it was among the five lowest rates in the nation. Nevada uses the NCCI as the official rating service. NCCI sets the basic rates per occupational codes. The actual cost to an employer for monthly premiums depends on two factors. First, the types of occupations it uses, and second the employer’s Modified experience rating.

What Is the Cost of Not Getting Workers’ compInsurance?

Nevada can impose fines, penalties, and stop work orders for uninsured employers. You can face fines up to $15,000 plus amounts involved in benefits that should have come through qualified insurance coverage.

Uninsured employers lose the protection against lawsuits for work-related injuries and illness. The uninsured employee can sue the employer for damages in civil court for his or her injuries, but employees can also sue for the workers’ comp benefits that would have been. The employee can recover all benefits as if the employer met its obligation to get and keep insurance.

Factors that Impact Coverage

  • Legal

    Nevada is an at-will employment state which means that employers can dismiss an employee at any time and for any valid reason. Employers may not dismiss, discipline, or treat in any way differently an employee that files a workers’ comp claim. It is a question of fact but as a matter of law- it is not permissible to fire an employee for filing a workers’ comp claim.

  • Liability

    The workers’ comp insurance law requires safety measures and an active safety program. Uninsured employers face civil penalties and lawsuits for injuries to uninsured employees. The state can also charge uninsured employers with criminal violations. The state can charge serious misdemeanors for uninsured claims resulting in substantial bodily injury or death.

  • Rates

    The NCCI studies occupations and assigns identification codes for classifying workers and setting rates based on risk. They perform extensive research on claims and losses The Government of Nevada uses the resulting proposed rates to set annual targets for insurers. Your actual rate depends on the employer specific risk level computed by the

Other Helpful Tips

The National Council on Compensation Insurance is the official rating agency for Nevada. The Department of Insurance sets rates. Insurance providers may vary rates by up to 25 percent for firms that qualify. Insurers can offer discounts for outstanding safety records, adoption of safety standards, and an active approved safety improvement program can create

Conclusion

Nevada small employers make up a substantial share of the state’s wage payrolls; they comprise about 40 percent. Despite its reputation for gambling and entertainment, Nevada has a substantial industrial and manufacturing base that includes gold and silver mining.

Workers comp classifications range from high-risk mining and extraction to casino game dealers. The common thread is that they all require an assurance of financial security in the event of a disabling injury. Nevada Workers’ Comp Insurance is essential protection for Nevada employers, employees, and their families.

Sources:

  • Employer’s Guide to Workers’ compensation
    http://dir.nv.gov/uploadedFiles/dirnvgov/content/WCS/EmployersDocs/EmployersBrochure04-14.pdf

  • Nevada Assigned Risk Pool
    https://www.ncci.com/Articles/Documents/II_StateAdvisoryForumState_NV_2016.pdf