Nevada small business insurance requirements: industrial insurance from the first hire, 25/50/20 auto limits and contractor licensing

Nevada: what the state requires of a small business

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In Nevada, an employer with one or more employees under a contract of hire must provide industrial insurance through a private carrier, approved self-insurance or a self-insured association, and subcontractors in the same trade count as employees; every registered vehicle must carry at least $25,000 per person, $50,000 per accident and $20,000 property damage liability since July 1, 2018; and licensed contractors must show proof of industrial insurance and file a bond set by the State Contractors Board.

Reviewed by CoverMatch licensed agents, Licensed property & casualty agents · Reviewed Oct 11, 2026 Updated Oct 30, 2026

Nevada rules with sources
Topic	The rule in Nevada	Source
Workers' compensation (industrial insurance)	Where an employer has any employee under a contract of hire, the industrial insurance chapters are compulsory on both employer and employee, so coverage is required from the first employee unless a statutory exclusion applies; subcontractors and independent contractors in the same trade, business or occupation as the hiring business are treated as its employees.	NRS 616B.633 and NRS 616A.210; Nevada Division of Industrial Relations — Workers' Compensation Section, Employer information
Ways to comply and penalties	An employer complies with a policy from a private carrier, a certificate of self-insurance or membership in a self-insured association, or by showing it is outside the chapters, for example with no employees and no contractors; uninsured employers face administrative fines, premium penalties and possible closure by the Division.	NRS 616B.633, 616B.300 and 616D.120; Nevada Division of Industrial Relations — Affirmation of compliance
Auto liability minimums	Bodily injury $25,000 per person / $50,000 per accident and property damage $20,000, in force since July 1, 2018 under Senate Bill 308 of 2017, which replaced 15/30/10; uninsured and underinsured motorist coverage is offered but not mandated.	NRS 485.185; Nevada Division of Insurance — Higher minimum vehicle liability requirements
Licensed contractors	Contractors must hold a State Contractors Board license; the Board sets a surety bond for each license, requires proof of industrial insurance or an exemption affidavit for a business with no employees, and residential contractors register with the Residential Recovery Fund.	NRS 624.256 and NRS 624.270; Nevada State Contractors Board — Licensing requirements

Topic

The rule in Nevada

Source

Workers' compensation (industrial insurance)

Where an employer has any employee under a contract of hire, the industrial insurance chapters are compulsory on both employer and employee, so coverage is required from the first employee unless a statutory exclusion applies; subcontractors and independent contractors in the same trade, business or occupation as the hiring business are treated as its employees.

NRS 616B.633 and NRS 616A.210; Nevada Division of Industrial Relations — Workers' Compensation Section, Employer information

Ways to comply and penalties

An employer complies with a policy from a private carrier, a certificate of self-insurance or membership in a self-insured association, or by showing it is outside the chapters, for example with no employees and no contractors; uninsured employers face administrative fines, premium penalties and possible closure by the Division.

NRS 616B.633, 616B.300 and 616D.120; Nevada Division of Industrial Relations — Affirmation of compliance

Auto liability minimums

Bodily injury $25,000 per person / $50,000 per accident and property damage $20,000, in force since July 1, 2018 under Senate Bill 308 of 2017, which replaced 15/30/10; uninsured and underinsured motorist coverage is offered but not mandated.

NRS 485.185; Nevada Division of Insurance — Higher minimum vehicle liability requirements

Licensed contractors

Contractors must hold a State Contractors Board license; the Board sets a surety bond for each license, requires proof of industrial insurance or an exemption affidavit for a business with no employees, and residential contractors register with the Residential Recovery Fund.

NRS 624.256 and NRS 624.270; Nevada State Contractors Board — Licensing requirements

Industrial insurance in Nevada

Nevada calls workers' compensation industrial insurance and requires it from the first employee under a contract of hire. The rule that same-trade subcontractors count as employees catches many small contractors who thought 1099 labor kept them outside the system. Compliance is a private carrier policy, approved self-insurance or association membership; the Division of Industrial Relations fines uninsured employers and can close a business.

Auto liability in Nevada

Senate Bill 308 raised the minimum to 25/50/20 from July 1, 2018. Uninsured motorist coverage is offered rather than mandated. Business vehicles are usually written at a $1M combined single limit because casinos, property managers, platforms and general contractors require it.

Contractors in Nevada

The State Contractors Board licenses by classification, sets a bond per license after reviewing the application, requires proof of industrial insurance or an exemption affidavit, and registers residential contractors with the Recovery Fund. Higher monetary limits need financial statements. Licenses renew every two years and lapse if the bond or insurance lapses.

How CoverMatch uses these rules

A Nevada business in the wallet is checked against these rules: industrial insurance once an employee or same-trade subcontractor is reported, the 25/50/20 floor on scheduled vehicles, and the bond and industrial insurance evidence for licensed trades. Each rule links to its source, and a licensed agent reviews this page before it publishes and whenever the rules change.

Sources

Questions people actually ask

I use 1099 installers in the same trade as my Nevada business. Do they count?

Yes. Nevada treats subcontractors and independent contractors in the same trade as the hiring business as its employees for industrial insurance, so a policy is required and their payroll is audited.

What does the Nevada contractor bond cover?

The bond protects customers, employees and suppliers against the contractor's violations; it pays nothing for the contractor's own losses. General liability, auto and industrial insurance remain separate policies.

Is uninsured motorist coverage required in Nevada?

No. Insurers must offer it and most businesses keep it, usually alongside a $1M combined single limit for liability that leases and contracts require.

By business type in Nevada