It doesn’t matter whether your business is located in Las Vegas, Henderson, Boulder City, or anywhere in Clark County, NV, if your company has employees in fields as diverse as the Construction and Trades Industry, Retail or Wholesale Sector, Consulting Sector, or the Professional Area, to name a few of the many businesses that call the Las Vegas/Clark County, NV area home, then it is mandated by state law that your company carry Las Vegas/Clark County, NV Workers’ Compensation Insurance for its employees. The purpose of workers’ compensation insurance is to provide coverage for your employees’ medical expenses, rehabilitation, and some portion of lost wages should they suffer an illness or become injured while on the job.
In almost all states, it is a requirement for companies to acquire Nevada workers’ compensation insurance coverage. Workers’ compensation and Employers’ Liability insurance is defined as a state-regulated, no-fault liability insurance which will cover an employee’s rehabilitation services, medical expenses, lost wages, and death resulting from a work-related injury or illness. If an employee of your company is injured on the job, regardless of whose fault it is, that employee will be eligible for workers’ compensation benefits. If an employee suffers an injury or illness in the performance of their job while conducting their employer’s business, they are entitled to receive worker’s compensation benefits.
An additional benefit of this type of Las Vegas business liability coverage is that it protects an employer from being sued by an injured worker, in most cases. If your company has employees in different states, employers need to be aware that each state will have their own separate set of rules and guidelines regarding workers’ compensation. If this is the case, make sure your insurance broker is aware of this so he plan accordingly.
We understand that clients would prefer to spend their valuable time on other pressing items, but when discussing workers compensation insurance, it is very imperative that you do everything possible to obtain proper coverage to prevent unwelcome surprises down the road. After our brokers have gathered all the proper information, complete with all the classification codes that will pertain to the client, and marketing their account to several carriers, we will present the client with the quotes, and, many times, the client will say, “I will just hire independent contractors and simply 1099 them”; thus, hoping to avoid carrying Las Vegas/Clark County, NV Workers’ Compensation Insurance. It is at this point, taking into consideration how states and carriers are cracking down on what constitutes an independent contractor, that we let our clients know it is just not that simple these days. Workers’ Compensation insurance carriers have very strict guidelines on what constitutes an independent contractor.
Here is a guideline on what constitutes an Independent Contractor and what constitutes an Employee:
- They have their own set of tools, and they can supervise, hire and pay assistants.
- They set their own schedule, not you; the timeline to complete the project is theirs.
- The work they are doing for your company is the same they perform for others.
- There is a risk of making money or losing money on every project they have.
- They have their own business license.
- The relationship is one that is on a continuous basis with the employer.
- They will not face any liability for quitting their position at any point.
- The employee schedule is set about where, how, and when they go to work.
- The employer supplies all the materials and tools. They just show up.
- All their training is supplied by the employer.
Please take note, this is only a rough guideline; all Workers Compensation Insurance Carriers have their only list of rules on how independent contractors are classified. We advise our clients to contact their workers’ comp carrier and request a clear set of guidelines from them regarding the use of independent contractors, so their company can comply and plan accordingly based on those guidelines. Your company doesn’t want a huge audit invoice because they didn’t follow the guidelines.
PJO Insurance Brokerage in Nevada has access to several Las Vegas/Clark County, NV workers’ compensation insurance carriers and has markets for those hard-to-place companies in the construction industry, such as roofing. If you are looking for someone to work with you on your workers’ compensation insurance needs, please call or email us, and let PJO Insurance Brokerage find the right carrier to fit your company’s workers’ comp needs.