Skipping required workers compensation in Nebraska is one of the most expensive risks an owner can take. Willfully going without coverage is a crime, it carries a civil fine of up to 1,000 dollars for each day you are uninsured, and the state can ask a court to bar your business from operating until you comply. On top of that, an injured worker can sue you directly, and the people who run the company can be held personally responsible.
Who this is for: Nebraska owners weighing the real cost of going without coverage, or worried about a lapse in a policy they already have.
The short version
- Willfully failing to carry required coverage is a crime, a class one misdemeanor.
- The civil fine can reach 1,000 dollars for each day you go without coverage.
- The state can get a court order barring the business from operating until it insures.
- You lose your usual legal defenses, so an injured worker can sue and recover more easily.
- Owners, officers, and managers with authority to buy coverage can be personally on the hook.
What the penalties look like
Nebraska stacks several consequences, and they can apply at the same time. The daily structure of the fine is the part owners underestimate, because a short lapse can add up fast.
| Consequence | What it means |
|---|---|
| Criminal charge | Willfully going uninsured is a class one misdemeanor, the most serious misdemeanor level |
| Daily civil fine | Up to 1,000 dollars for each day without coverage, since each day is a separate violation |
| Court injunction | The state can ask a court to stop the business from operating until it insures |
| Loss of legal defenses | An injured worker can sue in court, and you lose the defenses employers normally have |
| Personal liability | Owners, officers, and managers with authority can be personally liable for the claim and the fine |
The lawsuit exposure is the sleeper
The fines get attention, but the bigger number is often the lawsuit. When you carry comp, it is the exclusive remedy, meaning an injured worker takes comp benefits and cannot sue you for the injury. Go uninsured and that shield disappears: the worker can either claim comp benefits or sue you in court, and you lose the defenses that normally limit what an employer owes. A single serious injury handled through the courts can dwarf years of premium. Our national explainer on what workers comp does not cover helps you see where your exposure sits.
It gets personal
Nebraska does not stop at the business entity. An officer, member, manager, or partner who had the authority to secure coverage and willfully did not can be individually guilty of the misdemeanor and personally liable, together with the company, for the compensation owed and for the daily penalty. So forming an LLC or corporation does not put a wall between you and this particular risk. If you are the person who decides whether to buy the policy, you are the person the state and an injured worker can pursue.
A North Platte example
Illustrative, not a quote. A North Platte roofing company lets its policy lapse for two months to save money during a slow stretch. A roofer falls and is seriously hurt while the company is uninsured. Nebraska can charge the owner criminally, seek a fine that grows for each day of the lapse, and ask a court to halt the business. Because there is no coverage, the injured roofer can sue directly, and the owner is personally exposed for both the claim and the penalty. A continuous policy would have turned all of that into a covered claim. See our workers comp for roofers page.
Real questions Nebraska owners ask
What happens if I do not carry workers comp in Nebraska?
Willfully going without required coverage is a crime, can bring a fine of up to 1,000 dollars for each day uninsured, and can get your business barred from operating by court order. An injured worker can also sue you directly.
How big can the fine get in Nebraska?
Up to 1,000 dollars for each day you go without coverage, because each day counts as a separate violation. A lapse of even a few weeks can add up to a large total.
Can Nebraska shut my business down over this?
Yes. The state can ask a court for an injunction barring the business from operating until it secures coverage. For the state's request, no bond is required.
Is skipping workers comp a crime in Nebraska?
Yes. Willfully failing to secure required coverage is a class one misdemeanor, the most serious misdemeanor level, which can carry jail time and a fine.
Can I be personally liable if my company is uninsured?
Yes. An owner, officer, manager, or partner with authority to buy coverage who willfully did not can be individually charged and held personally liable for the claim and the daily penalty.
Why is the lawsuit risk worse than the fine?
Because going uninsured removes the shield that normally keeps a worker from suing you. The worker can sue in court and you lose your usual defenses, so one serious injury can cost far more than the fines.
What if my policy lapsed by accident?
You are still exposed for any injury during the gap, so close the lapse immediately. Keeping continuous coverage is the only reliable way to avoid the fines, the lawsuit risk, and personal liability.
Why Nebraska owners choose Morrow
- We shop the right market for you. In Nebraska you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because Nebraska has no state fund, and if no carrier will take you the Travelers-run Nebraska Workers' Compensation Insurance Plan is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Nebraska guides
Every Nebraska business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Nebraska (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- Nebraska roofing workers comp
This guide is general information, not legal advice. Nebraska rules and penalty amounts can change, so verify current requirements with the Nebraska Workers' Compensation Court or a licensed advisor before you rely on them. Last updated: July 2026.