Is it required in California?

Yes. California requires workers’ comp for every employer the moment they have employees — there is no minimum headcount.

How is workers’ comp priced?

Premium = your payroll, by class code, times the rate for each class, adjusted by your experience modification factor. It’s estimated up front and audited against actual payroll at the end of the term.

What is an experience mod (E-mod)?

It’s a multiplier comparing your claims history to businesses like yours. A 1.0 is average; below 1.0 lowers your premium, above 1.0 raises it. A clean safety record directly cuts your cost.

Do I need workers’ comp for 1099 subcontractors?

You should require each sub to carry their own and collect a certificate. If they can’t prove coverage, their payroll is typically added to your policy at audit — and you may end up covering their injuries.

Can owners exclude themselves?

Often, yes — depending on your state, entity type, and ownership. Whether you should depends on your other health coverage and what your contracts require. We’ll walk you through it.

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Workers’ Compensation Insurance

Also known as Workers’ Comp / Workman’s Comp

Got employees in Nevada or California? This one isn’t optional — and honestly, it’s the policy you’ll be most grateful for the day someone gets hurt.

Workers’ comp is the deal every employer makes: when someone on your team is hurt or made sick by the job, it covers their medical care and a chunk of their lost wages — no arguing about whose fault it was — and in exchange, it keeps most of those injuries from becoming a lawsuit against you. A line cook burns a hand, a framer takes a fall off a ladder, a warehouse picker tweaks their back — comp steps in so your people get taken care of and your doors stay open. Nevada and California both require it the moment you hire your first employee, and you’ll be showing proof of it on contracts and certificates constantly. Just remember it’s built for your crew’s on-the-job injuries — the public, your property, and your vehicles all ride on their own policies.

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Reviewed for accuracy by Mark Hutchings, Licensed Insurance Producer (NV #3600994).

Who needs Workers’ Compensation?

You’re a Nevada employer with one or more employees, full- or part-time — coverage is mandatory
You’re a California employer with any employees — it’s mandatory from your first hire
You’re a contractor or subcontractor — you’ll need it to bid work and satisfy general contractors’ certificate requirements
You’re an owner deciding whether to include or exclude yourself or your officers (the rules vary by state and entity)

What it covers

Medical treatment for work-related injuries and occupational illnesses
Lost-wage (indemnity) benefits while an injured employee recovers
Temporary and permanent disability benefits
Vocational rehabilitation where an employee can’t return to the same role
Death benefits to dependents
Employer’s liability (Part B) — defense if an employee or family member sues over a covered injury

What it doesn’t cover

Injuries to genuine independent contractors (they must carry their own — verify, or you pay at audit)
Off-the-clock injuries unrelated to work
Injuries from intoxication or willful misconduct
General third-party claims (customer injuries) — those are General Liability
Damage to business property or vehicles — Commercial Property / Commercial Auto

Real claim scenarios

Fall on a jobsite

One of your framing carpenters falls from a ladder and needs surgery and months of recovery. Workers’ comp covers the medical care and a portion of their lost wages, and the employer’s-liability section defends you if you’re sued.

Repetitive-strain or burn injury

One of your line cooks develops a wrist injury or suffers a kitchen burn. Comp covers treatment and time off without your employee having to prove you were at fault.

Uninsured subcontractor

A sub without his own coverage is hurt on your project. Because he can’t prove independent coverage, his payroll gets added to your policy at audit — and the claim may land on you.

Scenarios are illustrative; actual coverage depends on your policy terms.

How it’s priced

Your workers’ comp premium is priced on your payroll and the risk of the work your team does, then personalized to your actual loss record. It’s audited each year against the payroll you really paid.

Payroll by job classification (the premium basis) — split correctly between, say, office and field staff
Class-code rates — NCCI/state rates reflect each job’s injury risk (clerical is cheap; roofing is not)
Experience modification factor (“E-mod”) — rewards a better-than-average claims record and penalizes a worse one
State — Nevada and California have different rate environments and rules
Annual premium audit — your final premium trues up to the payroll you actually paid

What to watch out for

Worker misclassification (treating employees as 1099 contractors) is the #1 audit problem — it triggers back-premium, penalties, and uncovered claims.
Get class codes right: misclassified payroll either overcharges you or voids coverage on a claim.
Collect certificates from every subcontractor — uninsured subs’ payroll is added to your audit and you effectively insure them.
Your experience mod compounds over time — a single large claim can raise premiums for three years, so safety and claims management pay off.
Owners/officers can often elect in or out of coverage — the right choice depends on your entity, your health coverage, and contract requirements.

Workers’ Compensation FAQs

Yes. Nevada requires workers’ comp for virtually every employer with one or more employees, full- or part-time. Operating without it exposes you to fines and to paying claims out of pocket.

Related coverages

Get Workers’ Compensation coverage that fits

We’ll match your limits and endorsements to what your contracts actually require — across Nevada & California.

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