If you are a Nevada sole proprietor with no employees, you are generally not required to carry workers compensation, and you are not automatically covered yourself. The day you hire anyone, though, coverage becomes mandatory for that worker, because Nevada requires it once you have one or more employees. You can also choose to opt in and cover yourself even while you are solo.
Who this is for: Nevada sole proprietors, from a solo handyman or consultant to a one-person shop about to make a first hire.
The short version
- A sole proprietor with no employees is left off by default and is not forced to carry.
- You can opt in to cover yourself by filing a written election with the state and a carrier.
- Hiring even one worker, part time or seasonal, makes coverage mandatory from day one.
- Paying help as a 1099 contractor does not automatically avoid it; control over the work decides.
- A contractor license adds its own coverage rules even for a one-person business.
How Nevada treats a solo owner
A sole proprietor is not automatically an employee in Nevada, so if it is just you, the state does not force a policy on you. You have a choice: you can opt in and cover your own on-the-job injuries by filing a written election of coverage with the state administrator and a private carrier. If you elect in, Nevada figures your benefits on a set wage that starts at 300 dollars a month by default and can be raised up to 1,800 dollars a month if you elect and pay for the higher amount. Many solo owners skip comp for themselves and instead carry health coverage and disability insurance, but electing in is the only way to get workers comp wage replacement for a work injury.
What changes when you hire
| Your situation | Is comp required? | What to do |
|---|---|---|
| Just you, no workers | No, optional for yourself | Decide whether to opt in; carry health and disability either way |
| You plus any employee | Yes, from the first hire | Buy a policy before the worker starts; you can add yourself too |
| You plus a 1099 helper you direct | Often yes | If you control how the work is done, that person may be your employee |
| Licensed contractor, no employees | Coverage or an exemption affidavit | The Contractors Board needs proof of coverage or a signed no-employee exemption |
Why solo owners still buy it
Even when the state does not require it, three things push Nevada sole proprietors to carry comp. First, general contractors and larger clients often will not let you on the job without proof of coverage, and a rejection letter will not do. Second, your own health plan usually excludes injuries that happen at work, leaving a gap that comp fills. Third, if you elect in, a serious work injury has a source of wage replacement instead of coming straight out of your savings. We can quote both a solo owner-only policy and a policy that adds employees when you are ready.
A Reno example
Illustrative, not a quote. A solo cleaning contractor in Reno works alone and is not required to carry comp for herself, but a property manager she wants to service requires proof of coverage before signing. She elects to cover herself and buys a small policy so she can hand over a certificate and win the account. When she later brings on her first part-time cleaner, that worker is covered from the first shift with no seasonal exception. See our workers comp for cleaning and janitorial businesses page.
Real questions Nevada owners ask
Do I need workers comp as a Nevada sole proprietor?
If it is only you with no employees, generally no, and you are not automatically covered. The moment you hire anyone, coverage becomes mandatory for that worker.
Can I cover myself as a sole proprietor?
Yes. Nevada lets you opt in by filing a written election of coverage with the state administrator and a private carrier. That is the only way to get workers comp for your own work injuries.
How are my benefits figured if I opt in?
Nevada uses a set wage, starting at 300 dollars a month by default. You can raise it up to 1,800 dollars a month by electing the higher amount and paying the added premium in advance.
What happens when I hire my first employee?
Coverage becomes mandatory from that person's first day, part time or seasonal included. Buy the policy before they start, and you can add yourself to it at the same time.
If I pay someone as a 1099 contractor, am I off the hook?
Not automatically. Nevada looks at who controls how the work is done. If you direct the details, that helper can be treated as your employee and must be covered.
Why would a client ask a solo owner for proof of coverage?
General contractors and property managers manage their own risk by requiring proof. If you are uninsured, a hurt worker on their site can become their problem, so many will not hire you without a certificate.
Does my health insurance cover a work injury instead?
Usually not. Most health plans exclude injuries that happen on the job, which is the gap workers comp is built to fill, including wage replacement while you recover.
Why Nevada owners choose Morrow
- We shop the right market for you. In Nevada you buy from private insurers on the open market; the state sold off its old fund in 2000, so there is no government fund to buy from. If no carrier will take you, a state-backed pool (the assigned-risk plan) still has to cover you, so we can shop your rate freely and always 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 Nevada guides
Every Nevada 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 Nevada (start here)
- Workers comp: the owner's overview
- I own an LLC: 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?
- What happens if I don't carry workers comp?
- 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Nevada cleaning workers comp
This guide is general information, not legal advice. Nevada rules and penalty amounts can change, so verify current requirements with the Nevada Division of Industrial Relations or a licensed advisor before you rely on them. Last updated: July 2026.