If you own a small business in the Nevada , this information will help you understand Nevada Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Whether you work in Las Vegas, Henderson, Reno, Carson City, Paradise, Spring Valley, Enterprise or anywhere else in the Silver State having sufficient commercial liability coverage is an important part of any small business plan in Nevada.
Fast Facts About Nevada Small Business
A small business is defined as any company with fewer than 500 employees. Small business is vital to Nevada’s economic well-being, accounting for over 95% of all state employers. Of Nevada’s 215,786 small businesses in 2008 (the latest data available), 47,772 were small employers, accounting for nearly 43% of the state’s private-sector jobs. Another 215,786 were sole proprietorships with no employees.
Source: SBA Nevada Small Business Profile 2011.
About Commercial Liability Insurance for NV Businesses
Commercial liability insurance (also called business liability insurance and commercial general liability insurance) protects your Nevada business from financial loss resulting from claims of injury or damage cause to others by you or your employees. A policy typically covers:
Bodily Injury – physical damage to a person other than an employee at your place of business and injuries caused by you or an employee at a client’s home or work place.
Personal Injury – libel, slander, copyright infringement, invasion of property or privacy, wrongful eviction, false arrest and similar acts that cause damage to a person’s reputation or rights.
Property Damage – damage done to another person’s property by you or an employee in the course of conducting your business.
Advertising Injury – losses caused by your advertising
Legal Defense and Judgments – costs to defend against real and frivolous suits and judgments up to the limit of your coverage. Note this generally does not include punitive damages for negligence or willful misconduct.
Nevada Minimum Business Insurance Requirements
Commercial Liability Insurance is not mandatory for businesses operating in Nevada. Nevada is a modified comparative negligence fault state. Generally, a plaintiff must prove that the other party was negligent, and if he or she was 51% or more at fault, there is no recovery. If the plaintiff is 50% or less at fault, the amount recovered is reduced by the percentage that the plaintiff’s carelessness contributed to his or her own injury. The statute of limitations for any personal injury is 2 years. The product liability statute of limitations is 4 years. Accidents and lawsuits (legitimate and frivolous) do happen in Nevada. If you own property or other valuable assets you would be wise to invest in sufficient commercial general liability coverage for your Nevada small businesses.
How Much Nevada Commercial Liability Insurance Should You Carry?
Each situation is unique, but as a general guideline, the type of Nevada business you operate or products you manufacture should determine how much Nevada commercial general liability insurance you need. A good rule of thumb for most small businesses is between $500,000 and $1 million. However, if yours is a high-risk business such as the building trades or has a high volume of interaction with the public such as a restaurant or retail business, you should consider increasing your coverage. Note that if you operate out of your home, your homeowner’s or renter’s insurance has limited coverage for business liability and loss.
How Are Premium Costs Assessed
Nevada commercial liability insurance premiums are based on a number of factors including the types of service or products you provide, the number of people you employ, how long you’ve been in business, and your claims history. Coverage is typically capped at a specific dollar amount for your policy period.
Other Insurance to Consider for Your Nevada Small Business
Nevada requires that anyone who employs one or more persons, whether full or part time, carry workers compensation insurance. Sole proprietors with no employees are not required to carry workers compensation. Other exemptions may apply. Contact the State of Nevada Department of Business and Industry for details of exemptions and compliance. http://business.nv.gov
Nevada requires that all drivers carry minimum automobile insurance. If you use your car or truck for business, it is recommended that you purchase a commercial vehicle policy.
Employee Disability Insurance
BOP – Business Owner’s Package
E&O – Errors & Omissions
EPLI – Employment Practices Liability Insurance
Commercial Property Insurance
Regulating Agency and References
Nevada Division of Insurance
This agency is responsible for regulating all insurance policies sold in the state, including commercial liability coverage. Visit their website at doi.nv.gov Call 1-888-872-3234. Write 1818 E. College Pkwy, Ste 103, Carson City, NV 89706, or 2501 E. Sahara Ave, Ste 302, Las Vegas, NV 89104.
Nevada Small Business Administration
The SBA is an independent agency of the federal government created to aid, counsel, assist and protect the interests of small business concerns and maintains a District Office in Las Vegas. Get the link to the Nevada SBA at www.sba.gov.
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. It also offers an online form for filing complaints, reporting suspected insurance fraud and downloading key financial information about insurance carriers at naic.org.
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at www.iii.org.