Best Small Business Insurance in Nevada

Nevada Insurance Requirements

The State of Nevada currently requires businesses with part- or full-time employees to have workers' compensation insurance, and any vehicle used for business purposes must be covered by commercial auto insurance.

Commercial Auto Insurance

The following text from Section 485.185 of the Nevada state statute details some of the requirements for auto insurance coverage in the state:

1. Except as otherwise provided in subsection 2, every owner of a motor vehicle which is registered or required to be registered in this State shall continuously provide, while the motor vehicle is present or registered in this State, insurance provided by an insurance company licensed by the Division of Insurance of the Department of Business and Industry and approved to do business in this State:

(a) In the amount of $25,000 for bodily injury to or death of one person in any one crash;

(b) Subject to the limit for one person, in the amount of $50,000 for bodily injury to or death of two or more persons in any one crash; and

(c) In the amount of $20,000 for injury to or destruction of property of others in any one crash, for the payment of tort liabilities arising from the maintenance or use of the motor vehicle.

2. The provisions of this section do not apply to a moped.

Workers’ Compensation Insurance

Nevada requires businesses with one or more employees to have workers’ compensation insurance. There are some exceptions, which are explained in Section 616A.110 of the Nevada state statute:

“Employee” excludes:

1. Any person whose employment is both casual and not in the course of the trade, business, profession or occupation of his or her employer.

2. Any person engaged as a theatrical or stage performer or in an exhibition.

3. Musicians when their services are merely casual in nature and not lasting more than 2 consecutive days, and not recurring for the same employer, as in wedding receptions, private parties and similar miscellaneous engagements.

4. Any person engaged in household domestic service, farm, dairy, agricultural or horticultural labor, or in stock or poultry raising, except as otherwise provided in chapters 616A to 616D, inclusive, of NRS.

5. Any person performing services as a voluntary ski patroller who receives no compensation for his or her services other than meals, lodging, or use of the ski tow or lift facilities.

6. Any person who performs services as a sports official for a nominal fee at a sporting event that is amateur, intercollegiate or interscholastic and is sponsored by a public agency, public entity or private, nonprofit organization. As used in this subsection, “sports official” includes an umpire, referee, judge, scorekeeper, timekeeper or other person who is a neutral participant in a sporting event.

7. Any member of the clergy, rabbi or lay reader in the service of a church, or any person occupying a similar position with respect to any other religion.

8. Any real estate broker, broker-salesperson or salesperson licensed pursuant to chapter 645 of NRS.

9. Any person who:

(a) Directly sells or solicits the sale of products, in person or by telephone:

(1) On the basis of a deposit, commission, purchase for resale or similar arrangement specified by the Administrator by regulation, if the products are to be resold to another person in his or her home or place other than a retail store; or

(2) To another person from his or her home or place other than a retail store;

(b) Receives compensation or remuneration based on sales to customers rather than for the number of hours that the person works; and

(c) Performs pursuant to a written agreement with the person for whom the services are performed which provides that the person who performs the services is not an employee for the purposes of this chapter.

Data Breach Insurance

Nevada’s Data Breach Notification Statute requires businesses to notify residents of the state if their personal information has been or is suspected of having been compromised. 

Nevada businesses now face the possibility of lawsuits if their computer systems containing personal information are breached. Notifying residents of a data breach increases the likelihood that one or more of them will initiate a legal claim of negligence. Accordingly, businesses in Nevada should seriously consider carrying data breach insurance.  

603A.220: Disclosure of breach of security of system data

1. Any data collector that owns or licenses computerized data which includes personal information shall disclose any breach of the security of the system data following discovery or notification of the breach to any resident of this State whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person.

2. Any data collector that maintains computerized data which includes personal information that the data collector does not own shall notify the owner or licensee of the information of any breach of the security of the system data immediately following discovery if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person.

603A.030: "Data collector" defined

The term “data collector” includes a “retail operator or any other type of business entity or association.”

"Data collector" means any governmental agency, institution of higher education, corporation, financial institution or retail operator or any other type of business entity or association that, for any purpose, whether by automated collection or otherwise, handles, collects, disseminates or otherwise deals with nonpublic personal information.

Nevada Insurance Resources

Nevada Division of Insurance
Nevada Division of Insurance, Auto Insurance Information
Nevada Employer Guide to Workers’ Compensation

General Liability Insurance

The vast majority of Nevada companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries. 

General liability insurance is one of the most important types of business insurance your company can purchase.

Business Owner’s Policy

A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.

Commercial Auto Insurance

You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.

Workers’ Compensation Insurance

Nevada requires businesses with at least one employee to carry workers’ compensation insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.

Employee Health/Life/Disability Insurance

Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate Nevada insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.

Professional Liability Insurance

Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes. 

Professional liability insurance includes errors and omissions (E&O) insurance.

Data Breach Insurance

If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases. 

Cyber Liability Insurance

Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.

Commercial Crime Insurance

Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.

Fiduciary Liability Insurance

Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly. 

Third parties like out-of-company consultants and benefit plan administrators are usually not protected.

Directors and Officers Insurance

Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.

Executive Risk Coverage

Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.