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What is SIIS in Nevada?
According to SCLG, the State Industrial Insurance System (SIIS) was Nevada’s state-run workers’ compensation program [1].
Until 2000, all Nevada businesses were required to purchase workers’ comp coverage through SIIS, but due to management and financial issues, the system faced significant challenges.
Consequently, in 2001, Nevada privatized workers’ compensation insurance, allowing businesses to buy coverage from numerous competitive insurers and self-insured groups.
SIIS offered the same benefits as private workers comp insurers do now: Temporary or permanent disability payments following a work-related injury. Historically, SIIS paid out claims far larger than the revenue it collected. This is a big reason why Nevada privatized worker’s comp insurance in 2001
Workers Compensation Law in Nevada
Nevada’s workers’ compensation law mandates that all private employers with one or more employees carry workers’ compensation insurance.
Employees injured on the job receive benefits through this insurance coverage.
Who Is an Employee?
Workers’ compensation covers business employees, including:
- Minors
- Undocumented workers
- Corporate directors
Employees do not include independent contractors. An independent contractor may get their own workers’ compensation insurance. However, workers’ comp law in Nevada will not require the employer to provide this insurance.
What Injuries Are Covered?
Workers’ compensation in Nevada covers injuries that occur while the employee is working.
This means employees cannot claim workers’ compensation for injuries sustained during breaks or outside of working hours.
The insurance covers both one-time injuries, such as those from a fall off company equipment, and occupational diseases, which are injuries or illnesses that develop over time due to workplace conditions, like an illness from prolonged exposure to a toxic substance.
What are the Laws that Govern Worker’s Comp Insurance in Nevada?
According to Cerity, in Nevada, the law mandates that all employers with one or more employees provide workers’ compensation insurance [2].
The following are considered employees by the state:
- Full-time employees
- Part-time employees
- Seasonal employees
- Minors
- Undocumented immigrants
- Elected and appointed paid public officers
- Members of boards of directors serving corporations
- Musicians, including members of bands and orchestras
Certain exclusions apply as outlined by Nevada state law. For detailed information on these exclusions, visit the Nevada state website.
Sole proprietors who work alone are not required to have workers’ comp coverage. However, if they hire employees, they must provide workers’ compensation for them.
Businesses in Nevada also have the option to self-insure in lieu of a workers’ comp policy from a private insurer. However, most business owners opt not to do this, as self-insurance requires enough capital to pay any and all claims out of pocket, without any insurance coverage. Workers’ comp is typically more economical.
Workers’ compensation insurance premiums in Nevada are determined using NCCI loss costs, the loss-cost multiplier, the insurer’s scheduled rating, and other relevant factors.
Nevada boasts some of the lowest workers’ compensation rates in the nation, ranking as the 6th least expensive NCCI state in a 2020 study, with employers paying an average of 32% less than the national average.
A unique aspect of Nevada’s system is the payroll cap of $36,000, regardless of job classification or position. Out-of-state brokers and agents may overlook this cap, potentially leading to overcharging of insureds.
Related Articles:
- Is Nevada a Right to Work State?
- Examples of a Hostile Work Environment
- FCE Permanent Restrictions (How it Affects Workers’ Comp)
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References:
1. https://www.shouselaw.com/nv/blog/siis-in-nevada/
2. https://cerity.com/nevada-workers-comp/