Understanding Nebraska Workers’ Compensation Requirements

An A-Z guide on everything you need to know before you purchase a Nebraska Workers' Comp Insurance Policy

Most business owners in Nebraska are required to have workers’ compensation insurance when they have one employee. While workers’ comp is commonly needed across the United States, every state has different laws. Understanding Nebraska workers’ compensation requirements will set you off on the right foot.

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Seasonal, part-time, temporary, and minor employees need to be covered by the policy.

Who is exempt?

  • Federal employees
  • Railroad workers
  • Agricultural employees
  • Volunteers

Is workers’ comp insurance required in Nebraska?

Yes. If you have even a single employee, then you need to have a policy. Having it benefits your employees if they experience a work-related illness or injury. Employers must have coverage for seasonal, part-time, full-time, temporary, and minor employees.

Do you need workers’ compensation coverage if you’re self-employed?

In Nebraska, independent contractors and self-employed individuals are not required to have workers’ compensation insurance. However, contractors are loosely defined, and determinations are made case-by-case. The Workers’ Compensation Court uses past case law and other factors to decide whether you qualify as self-employed or independent contractors.

Who is exempt from Nebraska workers’ comp requirements?

The following types of employees do not need to be covered by this type of insurance: federal employees, railroad workers, agricultural employees, and volunteers.

How much is workers’ comp coverage in Nebraska?

Your Nebraska workers’ comp rate will depend on the following factors:

  • The type of business you have
  • The size of your payroll
  • Your safety record
  • Claim history
workers comp policy cost

How can Nebraska small business owners save money on workers' comp?

Workers’ comp can get expensive, especially in a high risk industry. There are some things you can do to lower your premium amounts.

Some of the most common methods to cut costs include:

How does workers’ comp work in NE?

First, you need to determine your estimated yearly payroll and use that information to get a quote or two for a workers’ compensation policy. Then you need to choose a plan and finalize it.

After the term is over, your payroll will be audited to compare the estimated payroll to the actual payroll. If you paid too much, you’ll get a refund. If you pay too little, you’ll get a bill.

What does workers’ comp cover in Nebraska?

Workers who file a workers' comp claim in Nebraska can receive benefits for the following:

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Nebraska?

The cheapest and most common way of getting workers comp insurance is to get a quote from an insurance agent.  Here at Kickstand Insurance, we have a quick and easy way to get a quote for an insurance policy. 

If you are an outlier, either you are in a very high-risk business or you have a bad claims history, a typical insurance company will not want to insure your company. 

You can buy coverage from the Nebraska-assigned risk pool in this situation. Travelers Indemnity Company manages this plan and acts as the workers’ comp provider of last resort. This option is more expensive but there aren’t any other options if you fall into this category.

For larger businesses that are comfortable taking on additional risk, they have the option to self-insure any claims from your employees. The company would be responsible for paying the claims instead of sending them to an insurance company.

What can happen if I don’t have workers’ comp insurance in Nebraska?

For companies that are required to have workers’ compensation insurance but do not, there are several consequences you may face. 

These penalties include the following:

  • A civil fine of up to $1,000 for each violation. Every day is a separate violation and potential fee.
  • With criminal charges of not having the proper insurance, you could face a $1,000 fine, imprisonment of up to a year, or both.
  • Businesses and employers may not be allowed to do business until they have proper coverage. This also may come with a $1,000 fine.
  • Sick or injured employees may sue the employer for damages caused by the accident in district court.
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FAQS

What are workers’ comp death benefits in NE ?

Death benefits may be provided for a deceased worker’s children and spouse. The benefits may go to the worker’s parents if no dependents exist. 

The burial allowance is $10,000 in Nebraska. Families can also receive up to 75% of the employee’s average weekly wage. The minimum weekly benefit is $49, while the maximum is $855.

These benefits can be paid for up to 500 weeks but will stop if the spouse dies or gets remarried. Surviving children receive benefits until they turn 19 (or 25 if they are in school.) Benefits can keep going for disabled children.

How do workers’ comp settlements work in NE?

Under Nebraska workers’ compensation requirements, employers, workers, and insurance companies can reach an agreement known as a settlement. This might be a structured settlement over time or a lump sum settlement. 

The Nebraska Workers’ Compensation Court presides over these cases and is not bound by traditional common law or rules of evidence.

What are the statutes of limitations regarding workers’ comp in NE?

For those in Nebraska, the statute of limitations is two years from the date of an injury or when the last compensation payments have been made. So you have two years after an injury or two years after receiving your most recent payments.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Learn more about Workers' Comp in Nebraska

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