Nevada Workers' Compensation Insurance Requirements

September 25, 2026

Last verified: November 5, 2026

If you pay anyone to work for you in Nevada, you need workers' compensation coverage from that person's first day. There is no minimum headcount and no waiting period. The questions that catch new owners are the ones around the edges: whether you have to cover yourself (usually you can choose not to), whether the people you call contractors count as your employees (often they do), and what a late or missing policy costs you.

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Who Must Carry Workers' Compensation in Nevada

Nevada counts employees from one. NRS 616B.612 requires every covered employer to provide and secure compensation for work injuries, and NRS 616B.633 makes that rule binding on any employer with an employee under a contract of hire. DIR's DIR Employer FAQ says it plainly: there is no waiting period, and employees are covered from the moment they are hired. Part-time and seasonal workers count, and so do family members, minors and workers without work authorization (NRS 616A.105; DIR Employer FAQ).

The statute carves out a short list of people and arrangements. Use this table to find your situation, then read the section that matches.

Situation	Coverage required?	Source
You have one or more employees	Yes, from their first day	NRS 616B.633; DIR Employer FAQ
Sole proprietor with no employees	No. You may elect to cover yourself	NRS 616B.659; DIR Employer FAQ
Sole proprietor who is a licensed contractor working within the license	Yes	DIR Employer FAQ
Paid LLC manager or corporate officer	Covered by default. An owner who is paid may reject in writing	NRS 616B.624
Unpaid LLC manager or corporate officer	Covered by default. May reject in writing	NRS 616B.624
Farm, ranch, dairy or household labor	Excluded by statute. The employer may elect coverage	NRS 616A.110(4); NRS 616B.656
Clergy and licensed real estate agents	Excluded by statute	NRS 616A.110(7) and (8)

An exclusion removes that one worker from the statute. It does not exempt the rest of your payroll. The statute lists more exclusions (casual labor outside your trade, stage performers, sports officials, certain direct sellers), all in NRS 616A.110. If a worker might fit one, get the carrier's answer in writing before you rely on it.

Owners, Partners and LLC Members

Sole Proprietors and Working Partners

NRS 616A.310 defines a sole proprietor as a self-employed owner of an unincorporated business and includes working partners. You are not required to cover yourself, but you can elect to by filing a written notice of election with the DIR Administrator and a private carrier (NRS 616B.659). A carrier may require a physical examination first. For benefit and premium purposes you are deemed to earn $300 a month, or $1,800 a month if you file notice at least 90 days before an injury and pay the additional premium. Coverage lasts only while you stay a Nevada domiciliary, and unpaid premiums count as a rejection.

The election protects you, not your workers. The moment you hire one employee, that employee must be covered whatever you chose for yourself.

LLC Managers and Corporate Officers

Once an LLC or corporation has to be insured, NRS 616B.624 treats its officers and managers as covered unless they reject in writing:

Paid officer or manager: deemed to earn at least $6,000 and at most $36,000 per policy year for premium purposes.
Unpaid officer or manager: deemed to earn $500 a month, or $6,000 a year, and may reject coverage by written notice to the company and the insurer.
Owner who is paid: may reject coverage for himself or herself by written notice to the insurer. The rejection takes effect when the insurer receives it.
Rescinding: a rejection can be reversed by written notice. Except for a paid owner, an officer or manager who rejected coverage and later takes pay is treated as having rescinded the rejection.

Rejecting coverage for yourself lowers your premium and leaves you with no workers' compensation benefits if you are hurt on the job. That trade is yours to make, and a broker can price both versions. A rejection covers only the person who signs it. The statute speaks of officers and managers, so if you have an LLC member who works in the business for pay and is not a manager, ask the carrier in writing how that person is classified. Our Nevada LLC guide covers forming the company, and comparing LLC formation services in Nevada helps if you want help filing.

Independent Contractors and Subcontractors

This is where uninsured-employer cases usually start. Calling someone a contractor does not remove your duty to cover them. Under NRS 616A.255, as quoted on DIR's DIR mandatory posting requirements, an independent contractor is controlled as to the result of the work only, not the means. DIR's DIR: Workers' Compensation and Independent Contractors adds that control over how the job is done matters more than the label or a signed agreement.

You are not the employer of a hired business only if both parts of NRS 616B.603 are met:

the business is an independent enterprise, meaning it holds itself out as a separate business and either holds a business or occupational license in its own name or owns, rents or leases property used in the business; and
you are not in the same trade, business, profession or occupation as that business.

Construction is the hard case. The independent-enterprise exception does not apply to a principal contractor licensed under NRS chapter 624, and NRS 616A.210 deems subcontractors, independent contractors and their employees to be employees of the principal contractor. DIR's DIR Employer Coverage Requirements says the principal contractor is almost always responsible for coverage on construction work, and can require proof of coverage from every subcontractor. If an uninsured subcontractor's worker is hurt, the principal contractor owes the actual cost of the claim plus administrative fees (DIR Employer Coverage Requirements; NRS 616C.220). Contractor licensing is covered in our Nevada contractor license guide.

Outside construction, NRS 616B.639 gives a principal contractor relief from an independent contractor's injury claims only if all four of these are true:

the contract is in writing and requires the contractor to maintain coverage;
you hold proof of that coverage;
the work is not a construction project; and
the contractor is not in your trade, business, profession or occupation.

In practice that means asking for the certificate before the first day of work, putting the renewal date on your calendar and re-checking coverage when it lapses. DIR's Coverage Verification Service, covered under "Checking Coverage" below, does the check.

Where to Buy Coverage

DIR: How to Obtain Workers' Compensation Insurance lists three routes:

Private carrier: a policy from an insurer authorized by the Nevada Division of Insurance. This is the route for almost every new employer.
Association of self-insured employers: a group of employers, generally in the same type of business, that jointly takes on the risk. DIR describes it as an option for smaller businesses.
Individual self-insurance: a certificate from the Commissioner of Insurance (NRS 616B.312). NRS 616B.300 sets the bar: at initial qualification a tangible net worth of at least $2,500,000 certified by an independent CPA, plus a bond or deposit of at least $100,000 (and at least 105 percent of expected annual claim costs). This is not a start-up option.

A professional employer organization (PEO) is a fourth path. Under NRS 616B.692 a PEO may cover the employees it leases to you, but if its agreement does not include coverage, it must tell you in writing that you remain responsible for covering all of your employees.

Expect to collect quotes yourself. A carrier will ask for your classification, payroll and claims history. We cannot give you a premium figure, because Nevada premiums depend on the carrier, the class code and your loss record. Treat any figure on a generic guide as a guess and use the quote. For the other start-up costs to plan around, see our cost to start a business in Nevada guide.

Premium Payroll Cap Change on October 1, 2026

Senate Bill 317 (2025) rewrote NRS 616B.222. Until now the most payroll counted for any one private-sector employee in a policy year was a flat $36,000. For policies on and after October 1, 2026, the cap for private employers is 12 times the maximum average monthly wage, which is 150 percent of the state average weekly wage multiplied by 4.33, set by the DIR Administrator on or before January 1 each year. The NCCI circular FYI-DR-NV-2026-01, posted by DIR puts the figure for October 1, 2026 at $98,433.60 and expects an update on January 1, 2027. The $36,000 cap stays in place for state and local government employees.

For you, the change means wages above $36,000 for a single employee now count toward the premium base, up to the new cap. The same circular expects the change to be premium-neutral across the state overall, which is not a promise for any one employer: ask your carrier to quote your renewal under the new cap. It also says the officer and manager amounts in NRS 616B.624 and the sole proprietor amounts in NRS 616B.659 are not affected.

Start Date: Coverage Before the First Hire

Because coverage is required from an employee's first day, a policy that starts after your hire date leaves a gap. Set the effective date on or before the first day of paid work. If an employee is hurt during a gap, NRS 616B.636 lets the employee or dependents sue you as if the workers' compensation chapters did not apply. You lose the defenses that the worker assumed the risk or that a coworker caused the injury, and the court presumes the injury resulted from your negligence, with the burden on you to rebut it. The worker can also attach your property while the case is pending.

Notices, Reports and Records

Buying a policy is only part of the job. Nevada employers also have these duties:

Post the workers' compensation poster: a poster in Form D-1 format, at least 11 by 17 inches, displayed where employees can see it (NAC 616A.460, reproduced in the DIR mandatory posting requirements). Failing to post or maintain the required notices is a misdemeanor (NRS 616D.270).
Identify your insurer: NRS 616A.490 requires a posted notice with the insurer's name, address and telephone number and the address of its nearest adjuster in Nevada.
Keep proof of coverage at each place of business: a copy of your policy and declaration page must be available for inspection by DIR or the Attorney General's investigators (NRS 616A.495). A temporary location of one year or less can produce it within 24 hours of a request. Not having it is a misdemeanor.
File the employer's report of injury: within 6 working days after you receive the physician's claim, send your insurer or third-party administrator the employer's report. A violation can draw an administrative fine of up to $1,000 (NRS 616C.045).
Handle injury notices: the poster tells employees to give written notice of an injury no later than 7 days after the accident. Keep a supply of the incident report form (C-1) on hand.

Hospitality employers have one extra item. An employee may elect to report tips for workers' compensation purposes on Form D-23, and the employer must then pay premium on the reported tips at the regular-wage rate (NRS 616B.227; DIR's notice to employees, Form D-22). If you run a restaurant, see our Nevada restaurant guide.

Penalties for Going Without Coverage

Nevada stacks several consequences, and the statute says penalties and remedies are cumulative (NRS 616D.010).

Consequence	What the law says	Source
Back premium	DIR may charge the premium you would have paid a private carrier at manual rates for the uninsured period, up to 6 years, plus interest	NRS 616D.200(1)
Administrative fine	Up to $1,000 for 90 days or less, up to $5,000 for more than 90 days to 1 year, up to $15,000 for more than 1 year. A small employer (under 150 employees) with an unintentional lapse may get up to 50 percent off	NAC 616D.345
Stop-work order	The Administrator may order all business operations at the workplace or jobsite to stop until you secure coverage, with a hearing 5 to 15 days after the order. Knowingly ignoring the order is a misdemeanor	NRS 616D.110; NRS 616D.115
Criminal charge	A first offense is a misdemeanor. It becomes a category C felony (1 to 5 years in state prison and a fine of $1,000 to $50,000) if an employee suffers substantial bodily harm or dies during the uninsured period, or for a second offense within 7 years	NRS 616D.200(3)
Restitution	A court must order restitution to the insurer and repayment of anything the Uninsured Employers Claim Account paid on your behalf	NRS 616D.200(4); DIR: Uninsured Employers Claim Account
Civil suit	The injured employee can sue with the presumption of negligence described above	NRS 616B.636

One more rule matters if you ever close a business. A person who owns 25 percent or more of a business that shuts down owing the Division unpaid fines, premium or Uninsured Employers Claim Account payments, and then owns 25 percent or more of a new business doing similar work, is liable for what the old business owed (NRS 616D.210). Closing the LLC does not clear the debt.

Checking Coverage: Yours and Your Subcontractors'

DIR runs a Coverage Verification Service (CVS) from its Workers' Compensation Section page. It shows policy status, current and past, for employers insured by private carriers. It does not display self-insured employers, who are listed in the Division of Insurance's self-insured employer and association member look-up tools, also linked from that page. Use it before a subcontractor starts, and again when the policy period ends. To report an employer you believe is uninsured, DIR's Workers' Compensation Section takes the call. Its Las Vegas office is 702-486-9080 and its Carson City office is 775-684-7270 (DIR: How to Obtain Workers' Compensation Insurance).

Out-of-State Employers and Remote Staff

NRS 616B.600 sets two rules you will not find in most guides. A worker hired outside Nevada who is only temporarily in the state is exempt from the Nevada chapters when the employer has other-state coverage that reaches Nevada work and the other state gives Nevada employers the same treatment. That exemption does not extend to employees of a Nevada-licensed contractor working within the license. In the other direction, you need not carry Nevada coverage for an employee who is hired or regularly employed in Nevada but works exclusively in another state, if that state requires you to cover the employee there, and any claim is filed in the state where the accident happened. Which rule fits a particular remote hire depends on the facts, so give your carrier the work locations in writing.

Disclaimer

This guide is general information based on the Nevada statutes and DIR documents listed under Sources, checked on November 5, 2026. It is not legal advice. Whether a particular worker is an employee, whether an exclusion applies and what a rejection of coverage does to your benefits are questions for a Nevada insurance broker or an attorney who handles industrial insurance. The Division of Industrial Relations' Workers' Compensation Section answers compliance questions directly.