Insurance in Nevada

Three insurance lines apply to most Nevada trade contractors: general liability, commercial auto, and workers' compensation. Two more (builder's risk and professional liability) apply situationally. Each line is governed by its own statute or contract requirement; together they protect the public, the customer, and the contractor's business from the most common construction losses. General Liability (CGL). Nevada does not statutorily require general liability insurance for every NSCB-licensed contractor. Coverage is, however, commonly required by general contractors of subcontractors, by construction lenders, by insurance carriers writing performance and payment bonds, by real-estate developers, and by larger commercial customers. Common minimums seen in Nevada contracts: $1,000,000 per occurrence and $2,000,000 aggregate for residential and small-commercial work; $2,000,000 per occurrence and $4,000,000 aggregate or higher for larger commercial and public projects. Limits are set by contract, not by statute. Standard exclusions to expect include damage to the contractor's own work product (often filled by a separate completed-operations endorsement), professional services, and pollution. Commercial Auto. Nevada requires liability insurance on every motor vehicle registered in the state under NRS 485.185 with statutory minimums of $25,000 per person, $50,000 per accident for bodily injury, and $20,000 for property damage. These are personal-auto-policy minimums; commercial auto policies for contractor vehicles typically carry $1,000,000 combined single limit because Nevada commercial customers and many local jurisdictions require it on bid documents. Confirm the required limit in any specific contract or municipal license application. Source: NRS 485.185 (https://www.leg.state.nv.us/NRS/NRS-485.html#NRS485Sec185). Workers' Compensation. NRS 616B.633 requires every Nevada employer with one or more employees to carry workers' compensation. Sole proprietors, partners, and corporate officers may elect coverage on themselves, but employees are non-elective. Construction is treated as an inherently hazardous industry and the Division of Industrial Relations (DIR) actively enforces compliance, including stop-work orders for uninsured contractors. Coverage is purchased through the private market in Nevada (the state moved away from a monopolistic state fund in 1999); rates depend on classification code and experience modification factor. Source: NRS 616B.633 (https://www.leg.state.nv.us/NRS/NRS-616B.html#NRS616BSec633). Builder's Risk. For projects under construction, builder's risk insurance covers physical damage to the work in progress (fire, theft of installed materials, weather damage). Typically required by construction lenders and most commercial contracts. Standard form is the project owner's policy, but contractors who self-finance smaller residential projects often carry their own. Professional Liability (Errors and Omissions). Applies when a contractor provides design or design-build services, including engineered plumbing or electrical layouts. Standard CGL policies exclude professional services. Required in most design-build contracts. Local Business License Insurance Requirements. Clark County, the City of Las Vegas, the City of Henderson, the City of Reno, and other local jurisdictions may require proof of insurance as part of issuing or renewing a local business license. Required minimums and acceptable certificates vary; confirm with the jurisdiction's business-license office before applying or renewing. Bond, insurance, and workers' compensation are separate. Carrying the NSCB license bond does not relieve any contractor of the obligation to carry workers' compensation under NRS 616B.633 or whatever insurance the work and contract require. Confirm each requirement against the current statute, NSCB rule, and your contract before you assume you are compliant.