One of the first widespread social insurance programs developed in the United States was workers compensation. Workers compensation is specialized insurance coverage purchased by employers to provide for medical care, rehabilitation expenses and indemnity payments (disability) for employees that are injured in the course of employment. The first workers compensation laws were developed by Maryland, around 1902. Federal employees were covered by 1906 and by 1950 every state had created a workers compensation program. In 1913 Nevada enacted it’s first set of industrial insurance laws, making us one of the earliest adopters of a workers compensation program.
The workers compensation laws in Nevada have changed many times in the last 100 years. Prior to 1997 Nevada was considered a monopolistic provider of workers compensation. That means the State of Nevada provided and administered workers compensation coverage and claims. In 1982 the legislature reorganized the workers compensation system and formed the State Industrial Insurance System (SIIS). Throughout the 1980’s SIIS was a stable and well-run program. In fact, from 1984 to 1988 the system paid over $50 million in dividends back to policyholders. Nevada employers enjoyed among the lowest workers compensation premium in the Western US.
By the early 1990’s, things had changed. Concerns were being raised about the way SIIS handled the claims of injured workers. SIIS had become slow to process claims and difficult for medical providers to work with. In 1992, SIIS announced it was experiencing financial difficulty and was liquidating assets to cover expenses. An audit by the Nevada Division of Insurance concluded that SIIS’s unfunded liabilities exceeded $2.2 billion. Without changes, it was estimated that SIIS would be insolvent by 1996. In 1993 and 1994, the Nevada legislature made substantial reforms to the laws and administration of workers compensation. However, it was apparent that the ultimate solution would be to privatize the system and allow reforms and competition to work. In 1998, Nevada ceased being a monopolistic workers compensation provider. Private insurers were now allowed to compete in the marketplace.
Since that time, Nevada employers have seen workers compensation rates stabilize and, in many cases, decrease. Nevada now has dozens of workers compensation carriers competing and an assigned risk program as a last resort.
If you are looking for a competitive workers compensation quote, give the experts at Safeguard Insurance a call. We work with many workers compensation insurance providers. We have flexible billing options including monthly payments, monthly self-reporting, and payroll integration. Our agency has been providing workers compensation coverage since 1998 to businesses large and small. Call us at 702-638-0022 or request a quote online.