Under Nevada's industrial insurance law, an officer or LLC manager working without pay may reject workers comp by written notice to the insurer and to the company, and a paid one who owns the company may file the rejection with the insurer alone. An unpaid officer who later takes pay is deemed to have rescinded the rejection. A sole proprietor may elect coverage by notice to the Administrator and a private carrier.
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Nevada's name for workers comp is industrial insurance, and the owner rules part ways with California and Arizona on one basic point: the statutes set no ownership percentage. What matters is whether the person is paid and whether they own the company. Until a rejection is filed, officers and managers are typically part of the company's coverage.
That shows up in the premium. If a paid officer or manager remains in, Nevada reports that person within a yearly range of no less than $6,000 and no more than $36,000, whatever the actual salary. An unpaid officer who stays in is reported at a deemed monthly wage the rules set. Ask the carrier which figure it uses for each person.
A Nevada officer rejection of coverage follows one of two paths in Nevada Revised Statutes 616B.624, and pay and ownership decide which one fits.
| Person | Option | Notice Goes To | What Ends It |
|---|---|---|---|
| Officer or LLC manager who receives no pay | May reject coverage | The company and the insurer, in writing | A written rescission, or receiving pay for services |
| Paid officer or LLC manager who owns the company | May reject coverage | The insurer | A written rescission |
| Sole proprietor, including a working partner | Starts outside coverage and may elect in | The Administrator and a private carrier, in writing | Written withdrawal to both, or unpaid premium |
Use the rejection form the carrier provides, or the one in a public agency's contract packet, and keep the signed copy with the policy. Form numbers repeated on other websites may be out of date. Before anyone signs, the carrier can explain what benefits that person would give up after a work injury. The choice belongs to each officer or manager.
A rejection isn't permanent. Under Nevada Revised Statutes 616B.624(4), an officer or manager may rescind it by written notice. The statute also has an automatic trigger: an officer or manager who rejected while unpaid and then receives pay for services is deemed to have rescinded. That trigger doesn't reach a paid owner who rejected through the insurer-notice path, who was being paid from the start.
Illustrative scenario
A tile contracting LLC in Reno has two managers. One owns the company, draws a salary and has sent the insurer notice rejecting coverage. The other rejected in writing to both the company and its insurer while working unpaid during the startup months. When the second manager begins taking a monthly draw for running jobs, that pay may be treated as rescinding the earlier rejection, so the carrier would typically expect that manager's payroll back on the policy within the officer range. The first manager's rejection stays as filed until a written rescission.
Nevada counts working partners and members of working associations as sole proprietors (Nevada Revised Statutes 616A.310). The Division of Industrial Relations says a sole proprietor with no employees isn't required to cover themselves but may choose to, with an exception for licensed contractors covered below. Under Nevada Revised Statutes 616B.659, the election is a written notice filed with the Administrator and a private carrier.
This is where contractor sole proprietors get caught. The Division of Industrial Relations' employer FAQ says sole proprietors who are contractors under Nevada's contractor licensing law, working within the scope of their license, must secure coverage. That sits beside the general rule that a sole proprietor with no employees may choose. The line is the Division's own statement, so ask the Division and the carrier how it applies to your license.
The license board has its own requirement. Under Nevada Revised Statutes 624.256, a contractor shows either an industrial insurance policy or an affidavit of exemption to get, keep, activate or renew a license. On a job site, Nevada treats the subs of a principal contractor, and their workers, as that contractor's employees. Principal contractors licensed in Nevada also can't use the independent enterprise exception. The Nevada independent enterprise test explains that exception.
A principal contractor or owner may also ask the insurer to certify whether each sub on a project is insured and whether a sole proprietor sub elected coverage (Nevada Revised Statutes 616B.645). That is why a general contractor may ask a lone sub for proof; the subcontractor insurance checklist for GCs sets out the documents to request.
Treating a License Exemption as the Whole Answer
A common mistake is to file an exemption affidavit with the license board and assume the question is closed. The board's file, the Division's statement on licensed sole proprietors and a general contractor's subcontract can each ask for something different. Read all three before a job starts, and get the carrier's answer in writing.
Public work has its own form. Under Nevada Revised Statutes 616B.627, before starting work on a contract with the State or a city, county or other political subdivision, a contractor furnishes its insurer's certificate of compliance. A sole proprietor who uses no employees may submit an affidavit instead, stating that it has not elected coverage as a sole proprietor. Agency packets may title this a Nevada affidavit of rejection of coverage.
Once the affidavit is in, the public entity may not require the sole proprietor to buy industrial insurance for himself or herself, and the entity is not that sole proprietor's employer or principal contractor for the contract. A contractor with a crew furnishes the insurer's certificate instead.
From October 1, 2026, Nevada limits the payroll counted for each private-sector employee, and for policies from January 1, 2027 that limit is $102,452.16. Owners are counted on their own basis instead: officers and LLC managers within the yearly range above, and sole proprietors at the deemed wage they elected. The Nevada industrial insurance payroll limit tool gives the per-employee figure for each policy period. Restaurant owners who work the floor face the same officer rules; workers comp for Nevada restaurants covers tips and meals in payroll.
List every officer, LLC manager, partner and sole proprietor with three facts: paid or unpaid, whether they own the company, and what has been filed with the carrier. The Nevada contractor workers comp rules page covers the principal contractor and payroll rules around that list, and builders can compare notes on Nevada contractor industrial insurance.
Running jobs in other states? Arizona brings majority owners in only by carrier endorsement, as the Arizona owner workers comp election guide explains, and California uses ownership tests for officer waivers, covered in California officer exclusion workers comp.
Valley contractors can start from Las Vegas contractor workers comp. Once the list is done, get a Nevada contractor industrial insurance quote; a licensed broker goes over each officer's and manager's status with you, and the carrier confirms each choice in writing. Other owner and audit topics are in workers comp questions answered.
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As a paid officer who owns the company, you may reject by giving notice to the insurer under Nevada Revised Statutes 616B.624. Officers who draw no pay use the other path, which needs written notice to the company as well. Use the carrier's form, keep a copy, and ask the carrier to confirm in writing the date it takes effect.
Nevada law deems an officer or manager who rejected while unpaid and then receives pay for services to have rescinded the rejection. The carrier would typically expect your pay on the policy from that point. Tell the carrier the date pay started and ask it to confirm your status in writing.
The Division of Industrial Relations states that a licensed contractor operating as a sole proprietor, within the scope of the license, must secure coverage, even though other sole proprietors without employees may choose. The license board also wants either evidence of coverage or an exemption affidavit before it issues or renews a license. Check both with the Division, the board and your carrier.
It stands in for the insurer's certificate of compliance when a sole proprietor uses no employees and has not elected coverage. Once it is filed, the public entity may not require that sole proprietor to insure himself or herself, and it is not that person's employer or principal contractor for the contract.
A deemed wage of $300 a month, unless the sole proprietor files written notice choosing $1,800 a month at least 90 days before an injury. The figure comes from the statute, not from what the business earns. Ask the carrier how each choice changes premium and benefits.
Under Nevada Revised Statutes 616A.310, a sole proprietor's coverage remains in effect only while the sole proprietor remains a Nevada domiciliary. If you plan to move, talk to the carrier before the move about the election and about any work you still do in Nevada.
6 official sources
Reviewed by David Gleason, Principal, on .
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Nevada officer and sole proprietor rules, laid out step by step before anyone signs a form.
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