Before you can begin a business in Nebraska, you typically need to accomplish several requirements to comply with state government and local laws. One of the most essential steps is obtaining Workers’ Compensation insurance, a type of coverage that can protect you from liability claims, particularly those made by a worker for an injury they suffered while performing their duties.
Nebraska Workers’ Compensation insurance has a few differences that make it unique from other states in the U.S. We have shared what you might want to know about the state’s insurance requirements. Keep reading to learn more or contact us to get a quote for a policy.
What Is Workers’ Compensation Insurance and Why Is It Essential?
Accidents can occur in the workplace, no matter how extensive your precautionary measures or safety protocols may be. When these incidents happen, your employees can get injured. Workers’ Compensation laws help to ensure that affected individuals can receive compensation for the damage they suffer.
A Workers’ Compensation claim can be a huge expense for a company. However, this financial risk can be mitigated with a Workers’ Compensation insurance plan. This type of policy can serve as a safety net, helping to cover the expenses so your company doesn’t have to.
Nebraska Workers’ Compensation Insurance: Specific Characteristics
Since Workers’ Compensation laws and insurance requirements differ from state to state, you can expect that Nebraska has some unique qualities. Here are some specifics you might want to remember:
- Most Employers Are Required To Get A Policy: Most employers who hire employees, might be required to get insurance as mandated by the Nebraska Workers’ Compensation Court.
- Where To Get Insurance: Nebraska is not a monopolistic state, so companies can purchase insurance plans from carriers like PolicySweet. For those who want to self-insure, there are several requirements you must first satisfy, such as having a minimum of 100 employees and being a corporation or political subdivision.
- Penalties: For each violation, you may have to pay an amount not exceeding $1,000. For each additional day you fail to rectify the violation, the court can fine you a similar amount. They may also file criminal charges that could result in one-year imprisonment, a $1,000 fine, or both.
- Exemptions: Like in other states, sole proprietors without employees may not be required to obtain Nebraska Workers’ Compensation insurance. In addition, household domestic workers and some agricultural employees may not need coverage.
What Does Nebraska Workers’ Compensation Insurance Cover?
The Nebraska Workers’ Compensation Court has three classifications for the type of benefits an injured worker can receive: medical benefits, indemnity benefits, and return-to-work services.
Medical Bills:
When a worker is injured because of an accident or hazardous exposure, they may need medical and hospital services, treatments, prosthetic devices, and other supplies and services that can cost them money. Employees may file a claim so their company and the insurer can provide medical benefits that help cover the listed expenses.
In Nebraska, employers may also be required to notify an employee that they can choose a doctor that can provide primary care services. Injured employees, on the other hand, should submit a detailed expense report for medical-related costs so that the insurance provider can make an accurate payment.
Indemnity Benefits:
Indemnity benefits are further classified into three types: temporary disability benefits, permanent disability benefits, and death benefits. Being unable to work because of a disability stemming from a workplace injury entitles an employee to indemnity benefits. This compensation provides a source of income for them and their loved ones even though they can’t report to work or perform their original duties.
In the case of death because of an accident, the employee’s surviving spouse or dependents can file a claim to receive death benefits. In some cases, the company and insurer may also provide compensation for burial services.
Return-to-Work Services:
Vocational rehabilitation benefits or return-to-work services can be awarded to employees who may need additional vocational training. This need could arise for workers who are no longer able to perform their original duties because of a disability. Workers’ Compensation can also cover job placement expenses in case the employee can no longer return to their original role because of the disability.
What Do Workers’ Compensation Policies Not Cover?
Like most other Workers’ Compensation laws in other states, Nebraska’s rules and policies also make exemptions to what can be covered by Workers’ Compensation insurance. For example, pain and suffering typically is not covered since it isn’t considered an economic damage. In addition, an employee cannot file a claim if the injury resulted from:
- Refusal to follow company safety protocols
- Use of controlled or prohibited substances
- Violence the employee instigated
- Intentionally injuring themselves
- Other scenarios
Insure Your Business Today!
To help avoid legal and financial trouble as you establish your business, it may be best to accomplish necessary business requirements first, including obtaining Workers’ Compensation insurance. PolicySweet can provide comprehensive policies that can help meet your needs. We have worked with many small businesses in Nebraska and other states across the U.S., helping clients in a variety of industries:
To help make things easier for you, we follow a systematic yet simple approach to provide coverage to businesses. First, we ask you for details about your business so we can get an in-depth understanding of your needs. Then, we can provide a no-obligation quote to help you make a more informed decision. Once you accept the quote and the plan, you can start your coverage immediately.
Ready to get insured? Contact us today and receive your quote!
Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.