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About Your Policy: Nevada



Definition of Employee
Please see this website for information on what constitutes an employee in Nevada. 
To avoid additional premiums because of work performed by subcontractors, obtain a certificate of insurance verifying workers' compensation coverage from all subcontractors working for you prior to beginning work on the jobsite. A certificate of insurance verifies that the subcontractor has workers' compensation coverage of his/her own. WCF Insurance will assess a premium charge if you do not provide certificates of insurance showing coverage for your subcontractors during the time work was performed.
Sole Proprietors and Partners
The requirement to report uninsured subcontractors includes sole proprietors and partners who do not have employees of their own. These sole proprietors may purchase a workers' compensation policy of their own, thus enabling them to provide evidence of valid coverage. 
Corporate Officers and Managers of Limited Liability Companies
Officers of a corporation and managers of limited liability companies providing services are automatically covered by a policy unless they elect to reject coverage by filing written notice with their insurer. 
Employees Doing Work Across State Lines
Workers' compensation coverage provided by WCF Insurance may cover employees who are hired in one state but are working temporarily in another. This is known as coverage reciprocity. 
Nevada does not accept reciprocal agreements from other states for construction work. 


Classifications and Rates
In many states WCF Insurance, like all other workers' compensation carriers, uses the rules and classification system designed and maintained by the National Council on Compensation Insurance (NCCI). NCCI has established basic classifications for most types of businesses and industries.
NCCI also assigns loss costs (and rates in some states) for each classification code. These are based on the loss experience and payrolls of companies with employees assigned to this code within a given state. It is important that employers are assigned to the proper classification to protect the integrity of the rating system and ensure that employers are charged a rate reflective of their exposure. 
Other states maintain their own rating bureaus. Although similar in function to NCCI, they have different manuals, rules and regulations. 
If you have any questions concerning the classifications assigned to you, please call our premium audit department toll free at 800.446.2667.
Premium Calculation
When the underwriting department prepares an insurance proposal, we use information from the application received from your insurance agent to calculate an estimated annual premium. The quality and completeness of the application can have an impact on underwriting decisions and the proposed premium. 
Rates apply per $100 of payroll. The payroll for each class is divided by 100 and the resulting number is multiplied by the rate. 
Example: $100,000 (payroll) /100 = $1,000 and $1,000 x $16.41(rate for classification) = $16,410 (premium).
A premium auditor may review the policy during the coverage period or after the expiration date to determine the final premium. Alternatively a voluntary payroll audit will be completed by the policyholder. The policyholder will receive an invoice for any additional premium due or to be refunded.
For the specific audit period, payroll is reported as gross, not net.  In Nevada, payroll for each employee is capped at $36,000 per annual policy period and premium will not be collected for payroll above this amount. 
Adjustments to Premium
The number and dollar value for claims on your policy is likely to affect the ultimate cost of your workers' compensation. A single claim may not adversely affect an employer's individual manual rate, but can affect possible premium adjustments. There are several possible premium adjustments that may affect your final premium:
  1. Experience Modification Factor (e-mod) - The e-mod factor is calculated by NCCI or the state bureau based on your payroll and claims history relative to other companies assigned to the same class as you. If your claims were higher than expected, the e-mod will be higher resulting in a higher premium. If your claims were lower than expected, the e-mod will be lower resulting in lower premiums. Your company will retain the experience used to produce this factor even if you change insurance carriers and in most cases with the transfer of assets/ownership from one party to another.
  2. Minimum Premium – For some employers, the actual payroll and rates for the assigned classifications may not generate enough premium to cover the costs of providing insurance. In this case, a minimum premium is charged. Minimum premiums vary by class code.
  3. Premium Size Discount – These discounts are based on the amount of premium being charged.  
  4. Schedule Rating - Optional premium adjustments may be available at the discretion of the underwriter based upon management practices and/or safety programs in place.  The most common sources of information used in determining this adjustment are questionnaires, inspection reports from our safety staff and information provided by your insurance agent. 
The Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) extends the federal terrorism risk insurance program. That program, initially enacted in 2002, reimburses insurance companies for some portion of insured commercial property and casualty losses resulting from acts of terrorism, both foreign and domestic.


What is Workers' Compensation Insurance
Workers' compensation insurance provides no-fault coverage which, under most state laws, allows employees who are injured on the job to receive the benefits outlined in statutes of that state regardless of who caused the injury. In return for providing workers' compensation coverage for their employees, employers receive exclusive remedy protections. This means that, in most situations, employees cannot sue employers for damages for workplace injuries.
Coverage is divided into two categories: (1) workers' compensation insurance and (2) employer's liability insurance. Workers' compensation insurance covers medical expenses and reimburses employees for wages lost due to a work-related accident. Employer's liability insurance provides coverage to the insured for liability to employees for work related bodily injury or disease other than the liability imposed by workers' compensation law. As with all types of insurance, there are some conditions and exclusions to both. For further information, please contact your insurance agent. 
Who Needs Workers' Compensation Insurance
For workers' compensation purposes, the statutes in Nevada are clear: “Unless excluded by statute, “…Every person, firm, voluntary association and private corporation, including any public service corporation, which has in service any person under a contract of hire” needs coverage. 
(NRS 616A.230).  See also definition of employee above.
Special statutory provisions apply to contractors:
Licensed contractors may be held to be a Principal Contractor subject to monetary penalties, criminal prosecution, and/or being ordered to shut the business down if industrial insurance coverage is not provided for subcontractors, independent contractors and their employees. The licensed contractor, their subcontractors or independent contractors must provide this coverage. The licensed contractor will be held responsible if no coverage exists. Non licensed contractors may be exempt if they qualify as an Independent Enterprise. 
Generally, in the case of construction, the principal contractor is almost always responsible for coverage. The principal contractor can, however, require proof of coverage from subcontractors.
Please click on the link below to see what the Nevada requirements are for coverage.
Advantage Workers' Compensation Insurance Company
Your coverage is provided by Advantage Workers' Compensation Insurance Company (AWCIC). AWCIC is a wholly owned subsidiary of WCF Insurance and is licensed in all 50 states plus the District of Columbia. 
The Nevada Division of Insurance
Insurance departments regulate all companies providing insurance coverage in a given state. The Division of Insurance in Nevada approves the premium rating plans used by workers' compensation insurance carriers. Loss Costs, which form the basis for the final rates charged by insurance companies in Nevada, are updated regularly based on statistical data provided by NCCI or the state bureau. 
Office of the Labor Commissioner
This is the state regulatory agency that adjudicates disputes between injured workers' and their employers/insurance carriers in Nevada.
What do I do if I hire employees out of state or have employees temporarily in other states?
Every state can have different laws regarding coverage outside of Nevada. Call your insurance agent as soon as possible to find out what coverage you may need.
What is the minimum premium payment?
Minimum premium is the lowest premium that will be charged.  This is a per classification charge. If multiple classifications are on the policy, the highest of the applicable minimums will be used. If you have coverage in multiple states on one policy, only one minimum premium will be charged on the policy.  
What happens if my policy cancels?
WCF Insurance must notify the Office of the Labor Commissioner anytime a policy cancels. It's very important for you to pay your premiums on time and to maintain insurance coverage. Large fines can be imposed for employers who do not maintain workers' compensation insurance for their employees.

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