Do you own a business in Nevada? If so, there are several actions you need to take to ensure that your business is positioned for success. One of the most important is getting liability insurance, which can help protect your business from the inherent risks associated with doing your job.

On top of being a smart way to safeguard your business, there are also specific types of insurance policies that are legally required in order to operate a business within the state of Nevada. But which policies are required by law? And which aren’t mandated but are still critical? This guide will answer these questions and more. Let’s do this!

Nevada commercial insurance laws

In Nevada, there are two other types of insurance that are mandatory in order to legally operate a business. They are:

  • Workers’ compensation (if you have one or more employees)
  • Auto liability insurance

Workers’ compensation

Practically every state in the country has some form of workers’ compensation law in place. Nevada is no exception.

If you have one employee or more, you’re legally required to have workers’ compensation insurance. It can help your business cover the costs for an employee who’s injured or gets sick while on the job.

Nevada’s workers’ comp program provides a number of benefits that can go towards assisting an injured employee, including:

  • Medical treatment
  • Lost time compensation (TTD/TPD)
  • Permanent Partial Disability (PPD)
  • Permanent Total Disability (PTD)
  • Rehabilitation and retraining
  • Dependent’s benefits in the event of death

Failure to obtain a policy can have severe consequences on your ability to operate. According to the Department of Business and Industry Workers of Nevada:

Employers who do not provide workers’ compensation will be charged with an administrative fine up to $15,000; appropriate premium penalties; may be ordered to close business until insurance has been obtained; and will be held financially responsible for all costs arising from a work-related injury.

On top of that, if you’re found to be negligent, you could be subject to criminal penalty for claims resulting in significant bodily harm. That’s just adding insult to injury!

Auto liability insurance

Does your business own or have long-term leases on vehicles? Do you use those automobiles to transport employees or clients, or move property?

If so, you’re obligated by the state of Nevada to have a commercial auto insurance policy.

But, if you only travel to and from job sites, using a vehicle titled in your name chances are you may not need a separate commercial auto policy.

Why? In this scenario the use of your vehicle may not be excluded under your personal auto insurance policy, so that coverage should suffice.

Let’s look at a few examples.

Scenario #1: A home baker specializing in wedding cakes doesn’t have a physical store and needs to deliver cakes all over town. In this scenario, the cake delivery is a key function of the business – without it the business may not be able to get as many clients. As such, the home baker needs a commercial auto policy to protect the business while delivering cakes.

Scenario #2: A painter travels to and from job sites carrying their painting supplies in their small van. Although being able to get to and from projects is important, it’s not a critical function of the services provided. In comparison their ability to paint the interior or exterior of the property is a critical function. (If they don’t do it well they won’t get clients and therefore have no business). As such, the painter’s personal auto policy may be enough to cover them when driving to and from job sites.

As insurance is inherently complicated, these are just two simple scenarios to illustrate the difference. To make sure you and your business have the right coverage, talk to your auto insurance broker.

Auto insurance policies can help cover:

  • Liability for third party bodily injury and property damage
  • Medical bills
  • Uninsured motorists liability coverage
  • Collision coverage
  • Comprehensive coverage

Nevada laws stipulate that you must carry a minimum level of insurance coverage, including:

  • $20,000 property damage liability per accident
  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident

Other types of business insurance in Nevada

In addition to general liability coverage, there are some other types of insurance your business should strongly consider—even if they’re not mandatory:

  • General liability insurance
  • Professional liability insurance
  • Commercial property insurance

General liability insurance

Although it may not be legally required to obtain general liability insurance in Nevada, most every business owner in the state should have it—and for good reason.


Because it shields your business from the inherent risks of interacting with third parties while you’re at work. When you associate with others, like customers or contractors, accidents can happen. A general liability policy can help cover third-party claims relating to:

  • Bodily injury
  • Property damage
  • Personal and advertising injury

For example, if you’re a painter, the vast majority of your work is performed on other people’s properties. Should you accidentally harm the client (they trip on your ladder, for example) or damage their property (perhaps you spill paint on their driveway) during the course of your work, you could be held liable for those injuries or damages.

Professional liability insurance

Do you provide clients with advice? If so, a client could potentially claim that your expertise guided them in the wrong direction, resulting in their financial loss. Were that to occur, you could be held liable for the damages.

Professional liability insurance, also known as errors and omissions (E&O) insurance, can provide the investigation and defense of claims alleging damages for actual or alleged damages.

What are some professions that could benefit from professional liability coverage? They include:

  • Advertising and marketing consultants
  • Computer programmers
  • Graphic designers
  • IT consultants
  • Photographers and videographers (excluding coverage for the ownership, maintenance or use of drones, which come with additional liabilities)
  • Translators

Commercial property insurance

Does your business rent or own a building? Then the building and your company’s belongings need to be protected. Commercial property insurance can cover the building itself, the equipment, and inventory from several perils, including:

  • Fire
  • Explosions
  • Burst pipes
  • Storms
  • Theft
  • Vandalism
  • Smoke damage

This type of policy protects your business’ physical assets from the most common types of misfortune. However, unpredictable “acts of God” like earthquakes and floods won’t be counted unless they’re specifically named and added to the policy.

How to get liability insurance in Nevada

No matter where you live in the U.S., including Nevada, most every business is legally required to have commercial auto insurance and workers’ comp. But those are just the minimum requirements; they don’t protect you from all the risks associated with operating a business.

So, where do you go to obtain different types of Nevada liability insurance policies?

With Thimble, it’s easy. We offer affordable, on-demand policies that go by the hour, day, or month. Tailor a plan that works when you do and saves you money when you’re off the clock.

Getting started is simple. Either download the Thimble mobile app or click “Get a Quote.” Enter some quick details about your business, and we’ll generate a free quote on the spot. Click to purchase and your policy and any necessary Certificates of Insurance (COI) will be instantly sent to your email inbox.

All of this can be done in less than 60 seconds. Yes, it’s that fast.

Although it may not be legally required, obtaining a liability insurance policy is a fantastic way to hedge against the inherent risks and costs of operating your business. Outside of workers’ compensation insurance and commercial auto insurance, it’s one of the best ways for you to protect the various facets of your business’ operations. As a business owner, you have a ton of responsibilities to worry about; being protected from liability shouldn’t be one of them. Want to make your life easier? Let Thimble protect you from the risks inherent to your profession. That way, you can focus on what matters most… growing your business!