One of the realities of owning a business and having employees is the concept of vicarious liability. As a business owner, you are liable not only for the actions of your employees but also for any injuries they sustain while on the job. The medical costs to treat those injuries can add up quickly and most employers choose to protect themselves by purchasing Workers Compensation for Nevada business.
In Nevada and most other states, employers are protected from employee lawsuits (related to the injury) by a legal doctrine known as exclusive remedy. Simply put, exclusive remedy states that if an employer carries workers compensation insurance, the employee only has the right to benefits payable from the policy. With very few exceptions, the injured employee does not have the right to sue their employer for further compensation. This protection is a huge incentive for employers to carry workers compensation coverage. If an employer chooses to not carry workers compensation, they lose all protection afforded by exclusive remedy.
Workers compensation policies are rated using classification codes. The rates are reflective of the risk associated with a particular type of job. For example, a clerical employee will have a rate of around .50% in Nevada. A concrete finisher or mason will be charged around 4.5%. Rates vary greatly from one State to the next. California, for example, has among the highest workers compensation rates in the U.S. while next-door States Nevada and Arizona have among the lowest. The rates also reflect the benefits owed to the injured employee as determined by State law and the cost of medical care in that particular jurisdiction.
In addition to the base classification rate, there are also other factors that determine the final price you will pay for workers compensation. Like many other insurance policies, discounts are available for safety programs such as a drug-free workplace and for using a policy deductible. Perhaps the largest factor is the Experience Modifier or E-Mod. The E-Mod is a credit or debit applied to the policy based on the loss experience of that business. An excellent claims history will equal a credit E-Mod. Conversely, poor claim history will eventually create a debit E-Mod that can raise your overall premium dramatically. The E-Mod is designed to motivate business owners to create a safe working environment and be proactive about on the job injuries.
Workers Compensation for Nevada Business
At Safeguard Insurance, we are specialists in providing workers compensation insurance to Nevada businesses of all sizes. Contact us today to for a no-obligation quote. We provide you quotes from several insurance companies and help you choose the plan that provides the best value for your business.
For additional information about workers compensation insurance in Nevada, visit the website of the Nevada Division of Industrial Relations. You may also find the following brochures helpful: