Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Nebraska

In Nebraska, whether you need workers compensation insurance depends on the number of employees and the nature of your business operations.

When Workers Compensation Insurance Is Required

• Employers with one or more employees: Nebraska law generally requires all employers who have one or more employees to carry workers compensation insurance.
• Coverage applies to: Most full-time, part-time, and seasonal employees working in Nebraska are covered under this requirement.

Key Operational Considerations

• Employee Classification: Properly classify workers as employees or independent contractors to ensure compliance with insurance requirements.
• Insurance Providers: You can obtain workers compensation insurance through private carriers or the Nebraska Workers' Compensation Court’s assigned risk pool if coverage is denied.
• Recordkeeping: Maintain accurate payroll and injury records to support claims and compliance reporting.
• Payroll Impact: Workers compensation insurance premiums are often calculated based on payroll and job risk classifications, so accurate payroll tracking is essential.
• Compliance Monitoring: Regularly review your insurance coverage to accommodate changes in employee count or business activities.

Exceptions and Additional Notes

As of 2026, sole proprietors and partners without employees are generally not required to carry workers compensation insurance but may choose to do so voluntarily for protection.

Ensure you consult with your insurance provider or a Nebraska workers compensation expert to tailor coverage to your business needs.