Nevada General Insurance: The Benefits For Businesses And Professionals In NV
The Silver State is associated with big businesses such as hotel and entertainment conglomerates, but nearly 99% of all businesses in the state are small businesses – making up the bulk of the NV economy. According to the SBA, small businesses in the state add nearly 30,000 jobs per year. This is why having a large liability insurance coverage should be the cornerstone of your business plan, in order to secure the longevity of your business.
Small business growth boosts Nevada’s economy and every business requires Nevada general insurance to protect its business interest. It doesn’t matter if you’re a small gardening company in Paradise or a 50-bed hotel in Reno, we can offer the same wide all-encompassing coverage that will keep you safe from accidents and lawsuits. As a licensed Nevada general insurance company, we can provide the best premium rates for your business and help you grow.
Benefits Of Liability Insurance Nevada
Liability insurance protects your business for all payments you owe to other businesses, clients or visitors. This type of insurance coverage can provide million-dollar sums for all possible accidents and protect the business from bankruptcy. For instance, if you have to pay the medical bills of a client you can make a claim on your liability insurance and the insurance will cover their hospitalization expenses.
If you get sued by a business competitor or your employee damages property by accident, you’ll also be covered under a “General Liability” plan for commercial businesses. While you have to insure your own business (usually via Business Insurance coverage), this insurance is about potential payments you may have to make to others. Here are the main perks of liability insurance:
- Bodily Injury. If you own a hotel in Las Vegas and you have a shiny new marble floor lobby, but a client slips on it and breaks their leg they will demand medical expenses and claim you didn’t secure the lobby to prevent accidents. The medical costs will be covered under a liability insurance policy. The same applies if an employee injures another person by accident.
- Property Damage. If your employee drives a forklift into a private fence and destroys it by accident, you’ll need to bear the repair costs for the fence. If your employee spills a chemical on an expensive carpet and the business associate demands damages for the carpet, you’ll need coverage. Property damage exists to pay off all physical damage caused to items, real estate, valuables, and other valuables.
- Advertising Damages. If you hire the wrong advertising agency and they spread negative rumors about a competitor that causes a loss in revenue, they may decide to press charges. If one of your senior employees starts talking negatively about a competitor’s business practices and the word goes out which causes them to lose revenue, you may be held personally liable even though you had nothing to do with it. All revenue loss that came about as a result of slander and defamation is covered under general liability insurance.
Nevada General Insurance: What Are The Legal Requirements?
Nevada state law can have an impact on the way you’re allowed to run your small business. While NV is a very business-friendly state with zero state taxes and low regulations, there are certain basics you must cover in order to operate as a business.
- WCI: Workers’ Compensation Insurance
Nevada mandates that all businesses must provide WCI for employees. Even 1-person companies and contractors must have WCI. This is a basic form of social security that covers employee’s medical bills in the event of injury or sickness. This policy is also required for subcontractors and other people you work with on a one-time basis.
- Commercial Auto Insurance
Nevada businesses that own vehicles for business purposes have to purchase a separate commercial auto insurance policy. While the premiums are similar to what private owners pay, you will need to meet the mandatory minimums in terms of coverage. If you run a small business such as a pizza restaurant and make deliveries with your car, you’ll need to get commercial auto insurance.
The same requirement applies to fleets of trucks, vans, motorcycles, etc. The mandatory minimum coverage in NV is $50,000 per accident and $25,000 in medical payments. To stay on the safe side, purchase at least $100,000 in coverage per vehicle.
The best practice for commercial auto insurance is to purchase it separately as its own policy if you manage a fleet of vehicles. If you only have 1 vehicle under your business, you can add coverage for it under your General Liability Insurance policy.
Liability Insurance Nevada: For Professionals
If you’re a professional in a high-risk area such as medicine, consulting, law, law enforcement/security, and you’re exposed to a high risk of potential claims against you – you’re going to need liability insurance similar to that of business owners. It’s not uncommon for lawyers to take out liability insurance to the sum of $5M a year. Professional liability insurance will cover you for the following things:
- Negligence. Let’s say you’re a doctor and you wrongly pierce a client when you’re drawing blood, but they decide to press charges. Patients can even sue you for emotional distress if you cause a physical injury that takes weeks to heal. This is especially a risk factor for doctors who deal with hard patients such as cancer patients that may react differently to treatments. Similar scenarios apply to contractors who may make a small mistake and get sued by their clients. Even if you apply extra caution at your job, your clients might not interpret it that way and press charges.
- Contract Failure. If you’re an engineer and you fail to deliver on a project by the due date because one of your employees quit, you could get sued by the company that hired you. Things that are out of your control can impact your projects and this can have severe repercussions if the other party decides to press charges. If you manufacture a product and one of your main suppliers runs out of materials that delay their production, this can also impact your production and cause you to lose revenue because you have to cancel contracts. Your clients can claim negligence or breach of contract and you’ll need liability insurance to defend yourself in the court of law.
Liability Insurance Nevada: What Is The Cost?
The cost of liability insurance in NV varies based on the company. The main detrimental factors are the total revenue of the business, the # of employees, the square footage, the contractors/partners, the past claims history and experience.
If you run a very small business with a low record of past claims, you may pay 10-20x less than a large business that is at high risk of lawsuits. As a broad average for the state of Nevada, most businesses pay $500-5000 per year in liability insurance. Note that it’s possible to pay less or pay more, depending on the size of your business.