Business owners in Nevada state, specifically in Las Vegas, must carry business insurance, not only because it is mandatory by Nevada laws, but to protect your business against the various hazards associated with your specific business.
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What insurance is required in Nevada?
According to the U.S. Small Business Administration (SBA), small businesses make up 99% of Nevada businesses, employing 503,144 people. Small businesses are an important part of Las Vegas. In fact, in downtown of Las Vegas exist more than 150 restaurants, coffee shops and bars, all protected with the right amount of small business insurance.
The Nevada Department of Insurance mandate all business owners provide workers’ compensation insurance for their employees.
The only exception to this law is the agricultural industry. In this industry, any business that is paying less than $20,000 a year to its employees will not be required by law to carry workers’ compensation.
You must note that any business that uses vehicles for their job, such as transporting patients, delivering goods, etc. must have commercial auto insurance. It is also required by law.
What is worker’s compensation insurance?
This insurance covers medical expenses and lost wages as the employees recuperate from an illness or injury. This coverage in fact is required by law, so business owners who have workers comp even if they have only one employee. The primary purpose of this insurance policy is to protect your employees against any financial losses if they are ill or suffer injuries in your workplace.
Workers’ comp is under a no-fault system; therefore, an employee doesn’t have to prove that the illness or accident was someone else’s fault, the employee will just be compensated for any injuries or illnesses sustained on the job. Employers looking for worker’s compensation insurance have these options:
- Self-insure using an experienced insurance broker to purchase workers comp from a reputable insurance company.
- Sourcing via the State Compensation Insurance Fund (also known as State Fund). The State Fund will provide you with a reasonable workers’ comp, thus helping you save money.
What factors can affect the cost of your commercial insurance in Las Vegas?
Basically, many factors impact the amount you will have to spend on small business insurance, including your:
- Industry
Evidently, some industries have higher risks than others. Since insurance companies invest on you based on your business’ risk profile, you may find your insurance rates reflect increased risk that comes with your industry.
- Number of Employees
It is a law required everywhere that if you have even one employee you must provide them with insurance, and naturally in this circumstance, the more employees you have the more you have to pay for your small business insurance.
- Payroll
Your business’ payroll also plays an important role in how much you will have to pay for insurance.
- Claims History
A business with a clean claim history, just like any other policy, means safety and experience which ultimately result in a lower insurance cost.
Other commercial insurance coverages you should consider purchasing
Professional Liability Insurance:
Professional liability insurance can protect you against:
- Negligence
- Fair dealing
- Inaccurate advice
- Misrepresentation
- Violation of good faith
Sometimes, the E & O can cover privacy violations that may threaten your business. Generally, this policy can be a very good and useful insurance policy to invest in.
Property Insurance:
A kind of first-party insurance that covers the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered accident, such as fire or explosion.
Business Liability Insurance:
Unlike commercial property insurance that covers the things your company owns, business liability insurance covers your actual business operations. Business liability insurance will pay the costs of any incident that causes bodily injury or property damage for which you were found at fault for. This type of insurance extends to your:
- Partners
- Vendors
- Suppliers
- Neighbors
- Customers
- Staff members
You must keep in mind that the specific type of liability insurance required for a business depends entirely on the type of business you run. We do suggest you to book an appointment with an insurance agent or a broker to review or find out about your business’ unique needs, in order to find a policy that is a perfect fit for your business. There are several subtypes of business liability insurance, so you can become confused very easily, asking help from someone who is professional can help.
General Liability Insurance:
Also known as commercial general liability, every business should have this type of insurance because it offers a wide range of benefits. Under a commercial general liability, the following are covered:
- Settlements, judgments, and court costs for all covered claims.
- The cost of a property damage claim against your business.
- Medical expenses in case someone is injured on your business premises.
- Administrative costs to handle any covered claims
However, general liability insurance does not cover:
- Personal injury claims made by your employees/worker.
- Damage to your office or equipment
- Auto accidents caused by either you or your employees at work, i.e., if the vehicle involved is used for business purposes.
