Nevada, like many other states, has an “exclusive remedy” law that protects business owners from employee lawsuits related to workplace injuries. If an employee is injured during the scope of employment, that worker can file a claim for benefits payable under the employer’s workers compensation policy, as prescribed by the Nevada Industrial Insurance Act (NRS 616A-D). Exclusive remedy means that the employee does not have the right to sue their employer for the injury, thus Workers Compensation Insurance becomes the sole or exclusive remedy for the costs associated with the injury.
Workers Compensation Requirement
Of course, the exclusive remedy defense only works if the Nevada business owner has actually purchased workers compensation insurance. If you decide to risk going without this coverage, be aware you forfeit all rights to assert a defense under exclusive remedy laws.
We also caution business owners about assuming their “independent contractors” are not employees and therefore workers compensation coverage is not needed. Be aware that Nevada law is very broad in this regard and requires employers provide workers compensation for all employees, but also subcontractors, independent contractors, and their employees.The law in Nevada uses an “independent enterprise” test that, frankly, very few independent contractors meet the definition of. This means that those people you pay as independent contractors are very likely statutory employees by the definition of Nevada law. If one of them is injured on the job, and you have failed to purchase workers compensation coverage, expect to pay the medical bills, attorney fees and a hefty fine to the State of Nevada.
Workers Compensation Protects Las Vegas Business Owners
The simple reality is that if you own a business in Las Vegas, North Las Vegas, Henderson or any other Nevada jurisdiction, you need to purchase workers compensation insurance. At Safeguard Insurance we work with up to 12 different insurance companies that provide workers compensation coverage in Nevada. We make the process of securing workers compensation quick and easy by offering payroll reporting programs, Quickbooks integration, monthly self-reporting or just traditional flat monthly bill plans.
Contact us today for a no-obligation proposal.