Workers comp coverage required in Nevada
Employers with 1 or more employees must carry workers' compensation insurance. Verified 2026-05-09.
Who must carry workers comp in Nevada?
Nevada workers compensation coverage is required Employers with 1 or more employees must carry workers' compensation insurance.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Nevada employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Independent contractors (1099) are generally not considered employees for WC purposes if they meet specific statutory criteria; otherwise, they may be reclassified as employees. A principal contractor is liable for the workers' compensation coverage of its subcontractors' employees if the subcontractor fails to secure coverage.
Penalty for going without
Penalties include fines, stop-work orders, and potential criminal charges. Employers are also liable for all medical expenses and lost wages if an uninsured worker is injured. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Nevada?
Employers with 1 or more employees must carry workers' compensation insurance.
When does the requirement kick in for a new Nevada employer?
The clock starts on the first day the first qualifying employee is on the books. Nevada does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Nevada?
Penalties include fines, stop-work orders, and potential criminal charges. Employers are also liable for all medical expenses and lost wages if an uninsured worker is injured.
Do 1099 contractors trigger the coverage requirement in Nevada?
Independent contractors (1099) are generally not considered employees for WC purposes if they meet specific statutory criteria; otherwise, they may be reclassified as employees.
Are subcontractors counted toward the threshold in Nevada?
A principal contractor is liable for the workers' compensation coverage of its subcontractors' employees if the subcontractor fails to secure coverage.
What happens if I am audited and found non-compliant in Nevada?
Nevada typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Penalties include fines, stop-work orders, and potential criminal charges. Employers are also liable for all medical expenses and lost wages if an uninsured worker is injured. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.