All Nebraska employers with one or more employees, full-time or part-time, are required to provide workers’ compensation insurance. This policy covers the cost of medical treatment for work-related injuries.
Nebraska imposes strict workers’ compensation insurance rules on employers doing business there. Unless otherwise excluded, employers with one or more employees are required to provide insurance.
The law applies to virtually all employees, including those:
A limited number of employee types are exempt from coverage. They include:
Household domestic servants and some workers in agriculture are also exempt but can be covered at the employer’s discretion.
In Nebraska, employees must file a workers’ comp claim within two years from the injury or illness date.
It depends on the type of business you operate. Here’s how the rules of the Nebraska Workers’ Compensation Court work:
Sole proprietors, partners, and LLC members are exempt from buying workers’ comp insurance for themselves. However, they may purchase coverage if desired. This can be a smart decision since health insurance providers can deny claims for work-related injuries.
Executive officers of state corporations who hold 25% or more of their firm’s common stock aren’t considered employees and thus are exempt from workers’ comp coverage. Executive officers who want to elect workers’ comp protection must notify their insurance company and inform the entity’s corporate secretary.
Executive officers of nonprofit corporations in the state who earn $1,000 or less from their work for the corporation are also exempt.
Nebraska employers are not required to provide workers’ comp for independent contractors.
However, it’s important to make sure independent contractors are properly classified. While the Nebraska workers' comp statute does not define “independent contractor,” case law offers several factors to consider when making this determination on a case-by-case basis.
Furthermore, the Nebraska Supreme Court applies a 10-factor test, with no single factor being determinative.
All Nebraska employers with one or more employees, full-time or part-time, are required to provide workers’ compensation insurance.
Here are several examples of how workers' compensation insurance coverage helps pay expenses for injured workers:
Additionally, your workers' comp policy won't cover willful negligence, as well as:
The average cost of workers’ compensation in Nebraska is $50 per month.
Your workers' comp premium is calculated based on a few factors, including:
Business owners in Nebraska have a few choices when it comes to buying a workers' compensation policy:
Insurance providers use a specific formula for calculating workers' comp premiums:
Here's a breakdown of this equation:
To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.
In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of an estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.
A ghost policy is a cheap option in some states, including Nebraska. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.
Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.
Workers' compensation helps cover medical expenses related to workplace injuries and occupational diseases. It can pay for doctor's appointments, medications, and all other medical care related to the employee's injury.
It also provides partial wages while an injured worker recovers, usually equal to two-thirds of their average weekly wage.
Workers' compensation benefits in Nebraska include:
Policies usually include employer's liability insurance, which pays for legal expenses if an employee blames their employer for an injury. However, under the Nebraska Workers' Compensation Act, an employee forfeits their right to sue their employer over an injury or disease once they accept benefits.
For details, read the Nebraska Workers’ Compensation Court's FAQ for employers.
The State of Nebraska takes workers’ compensation seriously. If you fail to comply with the law, you may face one or more of the following penalties:
Also, an injured employee may sue you for damages in district court, an action in which the employer will lose its common law defenses.
If a worker’s injury results in a wrongful death, the surviving spouse will receive two-thirds of the employee's average weekly wage until the spouse gets remarried. Surviving children are also entitled to a death benefit.
In addition, the worker’s family may receive $6,000 to cover funeral expenses.
A workers’ compensation settlement is an agreement between the injured employee, employer, and insurer that resolves a workers’ compensation claim. This benefits both the employee and the employer.
In Nebraska, many workers’ comp claims end in settlements. This means the parties involved in the case—the injured employee, the company, and the insurer—must agree on a lump-sum payment amount. In exchange, the employee (or the employee’s survivors) must agree to the insurer stopping future benefit payments.
Employees who wish to enter into an agreement to take a lump-sum payment in lieu of future benefits must file an application with the Nebraska Workers’ Compensation Court.
If you are ready to buy workers' compensation coverage, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.