Protecting small businesses in the Silver State
With a quarter of a million small businesses employing nearly half a million workers, Nevada's small businesses make up a big part of the state's economy. According to the U.S. Small Business Administration, small businesses account for 99.1% of all business in the Silver State. And those businesses are helping Nevada's economy to grow. In 2015, small businesses created 26,753 net jobs.
Small business growth in Nevada is bolstered by the state's Small Business Administration, which offers development programs, trade expansion grants, counseling centers and more. But Nevada also reports one of the highest rates of employee lawsuits in the nation, so it's essential for Nevada's business owners to protect their investments through comprehensive small business insurance coverage.
Top industries covered by Hiscox in Nevada
Thanks to Hiscox's in-depth knowledge of diverse fields, small business owners in a range of industries can find insurance coverage with Hiscox. Some of the Nevada business owners who most frequently insure with Hiscox include those who work in the IT consulting, cosmetology, landscaping, personal training and home repair industries.
Nevada's Small Business Administration offers numerous perks for tech start-ups, making the Silver State a land of opportunity for IT consultants—but an IT consultant's everyday work with sensitive personal and business information brings a consistent level of risk that can benefit from a custom-tailored insurance policy.
Most IT consultants will choose the protection of professional liability insurance, also called errors and omissions insurance, which safeguards businesses that provide professional services. This policy would protect an IT consultant and appoint a lawyer if needed to defend against even baseless claims. For example, an IT consultant might review a client's website security in order to implement new procedures If the client's website later gets hacked, the client might make a claim of faulty work and sue to recover the revenue lost from the site being down.
General liability insurance, which protects against claims of bodily injury or property damage, would also protect an IT consultant if, for example, they accidentally break an antique vase when visiting a client’s office.
As part of the beauty and wellness industry, cosmetologists have deeply personal interactions with clients every day. While this may be one reason why cosmetologists choose to enter the beauty industry, it also carries certain risks, including client claims of emotional distress, bodily injury, personal injury, treatments gone wrong and property damage. Even when these claims don't have factual basis, they can still be stressful, costly and detrimental to a cosmetologist's business.
Professional liability insurance, which may also be called errors and omissions insurance, provides protection against lawsuits claiming that a business has negligently performed its services. In the cosmetology industry, a case like this might arise if a cosmetologist's assistant uses the wrong chemical treatment on a client, that client suffers an allergic reaction and has to miss work to seek medical treatment, and they subsequently sue the cosmetologist for emotional distress and lost wages.
Nevada cosmetologists can also benefit from general liability insurance, which protects in the case of lawsuits claiming property damage, slander, and bodily injury, which may occur even in the case of accidents in which no individual is at fault. For example, a cosmetologist performing hair and makeup services for a bridal party in the client's home might have an equipment malfunction that starts a small fire, and the client sues for damages to her home and mental distress.
A landscaper in Nevada may operate heavy equipment near clients' homes or businesses, handle harsh chemicals, and use sharp tools near clients. These everyday activities bring a heightened risk of bodily injury and property damage that expose landscapers to potential liability, which is exactly why Hiscox provides custom insurance that can meet the specific needs of each Nevada landscaper.
General liability insurance is one of the most important types of insurance for a landscaping business to have. It protects against bodily injury, so if a client trips over a lawn care professional's tools and breaks an ankle, the policy will cover the costs of the client's medical care. It also protects against property damage, so if an employee accidentally damages the façade of the client's home or business while working in the garden or trimming nearby foliage, the policy will cover the costs of replacing the brick or siding. And because it protects against personal injury, the business owner will be protected if an employee is overheard making disparaging comments about a client, the client hears about the gossip and subsequently sues for slander. The general liability policy would cover the claim and appoint a defense attorney, as necessary.
Personal trainers in Nevada might train clients for competition, help them recover after injuries, or simply help them get in shape. But as personal trainers know well, there are risks that come along with any fitness regimen, from injuries sustained during workouts to physical damage from equipment to chronic pain that starts after a session is over. While these risks are inherent to physical training, they may prompt litigious clients to file a claim against their personal trainers.
Professional liability insurance, also called errors and omissions insurance, covers claims against businesses that provide professional and personal services, such as personal trainers. This insurance offers protection even in cases where the personal trainer hasn't made a mistake, such as if an older client happens to suffer chest pain, has to be rushed to the hospital after a session with a personal trainer, and subsequently files a claim alleging that the personal trainer caused his heart attack and mental anguish.
In addition, the physical nature of a personal trainer's business should have the protection of general liability insurance, which protects against claims of bodily injury or property damage. This would protect the personal trainer's business in the case of slip-and-fall claims, which are not uncommon in a busy gym environment, or if a client brings their laptop to the gym, and it is subsequently damaged when someone trips over it.
A handyperson in Nevada will serve a wide variety of clients in a range of settings, from prestigious corporate offices to neighborhood shops and private homes. Dealing with others' personal property every day brings a heightened liability risk that can benefit from custom, comprehensive small business insurance. And an insurance policy inspires confidence in clients when they're deciding which handyperson or company to hire for a repair or home or business improvement project.
Most handypersons can benefit from the protection of general liability insurance, which offers several essential benefits. Because it protects against bodily injury, the handyperson's business will be protected if, for example, a client trips over the handyperson's toolbox, falls, and sprains a wrist; the policy will cover the costs of the client's medical care. Because it protects against property damage, it will cover the costs of, for example, repairing a wall that was damaged during a home repair project. And because it protects against personal damage, the business will be protected if, for example, an employee on his coffee break is overheard gossiping about a client in a false and unflattering way, the client subsequently hears about the discussion and sues for slander. In those cases, the policy will cover the resulting claim and pay for a defense attorney when necessary.
More professions we insure in Nevada
Nevada Small Business Insurance
As small business insurance specialists we understand that every business is different, which is why we don’t offer one-size-fits-all solutions. We customize our small business insurance in Nevada to the specific risks you face, ensuring you get the right coverage at the right price.
General liability insurance, known as Commercial General Liability (CGL), protects your business from another person or business’s claims of bodily injury, associated medical costs, and damage to property. Some examples of what could be covered are below:
- Bodily injury: A client tripped on an area rug in a real estate agent’s office and fell, breaking his hip. The client claimed bodily injury and medical expenses. General liability insurance protects real estate agents against third-party claims of slander, property damage, bodily injury, and associated medical costs.
- Property damage: A make-up artist went to a bride’s home to do the bridal party’s make-up before the wedding. She spilled liquid foundation on an expensive carpet, staining it. The bride’s parents sued for the cost to clean the carpet. General liability insurance protects beauticians and cosmetologists against third party claims of property damage, bodily injury, and related medical costs.
- Personal injury: An employee at a management consulting firm went to a bar after work. After a few drinks, he began talking loudly about an executive at a client company. The comments were overheard by associates of the executive, so word got back to the executive, who sued the consulting company for slander. General liability insurance protects management consultants against third-party claims of defamation and slander, property damage, and associated medical costs.
Learn more about how much general liability insurance costs.
Professional liability insurance, also known as errors and omissions insurance (E&O insurance), covers another person’s claims against businesses that provide professional and personal services. Some examples of what could be covered include:
- Negligence: An esthetician applied a chemical peel to a client, unaware that the client recently spent considerable time in a tanning booth. The client had a reaction to the peel, resulting in painful and unsightly blisters that took weeks to heal. The client sued the esthetician for emotional distress and negligence. Professional liability insurance can protect estheticians against claims of negligence, and will appoint an attorney to defend them if needed, even if they haven’t made a mistake.
- Breach of contract: A building inspector was hired to complete the inspection of a new office complex within a very short period of time so that the complex could open on schedule. Shortly after the inspector accepted the project, two of his employees quit, leaving him without the resources necessary taking him longer to complete the job. The opening of the complex was delayed, and the client sued the building inspector for the loss of revenue. Professional liability insurance protects building inspectors against claims of negligence and will appoint an attorney to defend them, if needed, even if they haven’t made a mistake.
Learn more about professional liability insurance.
Key Nevada laws and conditions driving increased business liability rates
Across the country, employees in all U.S. states are guaranteed a baseline level of protection against discrimination by the federal government. Employers with at least 15 employees may not discriminate against employees based on race, color, national origin, sex, religion and disability. Employers with 20 or more employees must guarantee freedom from age discrimination, and employers with four or more employees must guarantee freedom from discrimination based on citizenship status.
In addition to prohibiting employment discrimination based on race, color, national origin, sex, religion, disability and age, Nevada law also prohibits employment discrimination based on pregnancy, genetic information, sexual orientation and gender identity or expression. Employers must comply with these laws if they have at least 15 employees.
These additional protections broaden not only the potential for discrimination lawsuits but also for retaliation lawsuits—when an employee claims to have been fired or otherwise retaliated against for making a claim of discrimination. And Nevada faces one of the highest rates of employment discrimination lawsuits in the nation. A Hiscox study found that Nevada companies have a 55% higher chance of facing an employment charge than the national average. These charges can take their toll on a small business. It takes an average of 318 days for the typical claim to be resolved, and cases that result in a defense and settlement payment cost an average of $160,000.
While all business owners will do their best to mitigate these risks through careful management practices, all small business owners can use the protection of a comprehensive insurance policy to obtain additional peace of mind.
Nevada workers compensation laws
Just as Nevada boasts stronger employment discrimination laws than the U.S. average, its workers' compensation requirements are remarkably strict. While many U.S. states have a threshold of four or so employees before workers' compensation coverage is required, Nevada requires all employers—even those with as few as a single employee—to obtain workers compensation insurance.
Sole proprietors may choose to exempt themselves, and other exceptions include household and domestic workers, agricultural labor, and casual employees—those who work for less than 20 days with a labor cost of under $500—among others.
Nevada businesses may obtain workers compensation insurance from a commercial provider, such as Hiscox, or approved businesses may self-insure with the Nevada Division of Insurance. In order to qualify as a self-insured employer, businesses must meet a tangible net worth requirement of $2.5 million.
Penalties for failing to obtain workers compensation insurance are severe. According to the Nevada Department of Business & Industry, employers who do not provide workers' compensation will be charged with an administrative fine of up to $15,000, may face stop-work orders, and will be held financially responsible for all costs arising from a work-related injury. If a worker is substantially harmed or killed, the uninsured employer may also face criminal charges.
How can Hiscox help your Nevada business?
At Hiscox, we tailor each client's coverage—from liability insurance to a business owner's policy to workers’ compensation and beyond—to ensure that it meets each individual's specific needs. We offer a range of benefits:
- Flexible payment options. Our monthly payment schedule, with no added fees, can help you manage a growing business's cash flow.
- Tailored insurance. With Hiscox, you'll never be stuck with a one-size-fits-all insurance policy.
- Claims responsiveness. When a covered claim is reported, Hiscox will immediately assign a dedicated claim specialist to assist you.
- Worldwide coverage. A Nevada business insured with Hiscox is covered for work done anywhere in the world, as long as the claim is filed in the U.S., a U.S. Territory, or Canada.
Get a fast, free quote now, and get the protection you need for your Nevada business. If you have questions, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday – Friday, 7am – 10pm ET.
Quote online or call a licensed insurance agent
Hiscox Customer Reviews
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All of our insurance products have been fully approved in Nevada by the Department of Business & Industry, Division of Insurance and are underwritten by Hiscox Insurance Company Inc., an Illinois insurance company whose license number is 4539.
This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverage is subject to underwriting and may not be available in all states.
Administered by Hiscox Inc., a Delaware corporation that is a licensed insurance producer in all states and Washington, D.C. 520 Madison Avenue, 32nd Floor, New York, NY 10022.