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Nebraska Workers’ Compensation Requirements
Nebraska workers’ compensation laws require every business with at least one employee to have workers’ compensation insurance.1
Also known as workman’s comp, this coverage gives benefits to your employees if they get a work-related injury or illness. It can also help reduce your liability for injuries or illnesses that occur from work.
How Does Workman’s Comp Work in Nebraska?
Workman’s comp in Nebraska gives your employees different benefits to help them recover from work-related injuries or illnesses. The amount of benefits depends on an employee’s average weekly wage. As of January 2023, the maximum weekly income benefit is $1,029.2
Workers’ comp can help your Nebraska business and employees if:
- A receptionist trips over an office chair and breaks his arm
- An accountant notices a pain in her wrist due to carpal tunnel syndrome
- Your delivery person slips on ice in your parking lot and hurts his back
Who Needs Nebraska Workers’ Compensation Insurance?
The Nebraska Workers’ Compensation Act requires employers with one or more employees to have coverage.3 However, there are some exceptions to Nebraska workers’ compensation requirements, such as:4
- Railroad companies
- Private residences employing domestic workers
- Some agricultural employers
You can find more information about workers’ compensation requirements from the Nebraska Department of Insurance.
If you need proof of coverage, it’s easy to get a certificate of insurance from your insurer. This document includes important details about your policy and shows the state, your clients and employees that you have workers’ comp coverage. It’s important that your business classifies independent contractors and other workers correctly. Otherwise, you risk paying fines and penalties if intentional misclassification is discovered in a workers’ compensation audit.
Nebraska Workers’ Compensation Coverage
Nebraska workers’ compensation coverage can help cover an employee’s:
- Missed wages if a work-related injury or illness causes them to take time away from work.
- Repetitive strain injuries that develop over time. These are also called repetitive stress injuries (RSI) and the most common is carpal tunnel syndrome.
- Ongoing care, including physical therapy, surgeries and other treatment.
- Funeral costs and death benefits to beneficiaries if they lose their life in a work-related accident.
- Disability benefits if your employee gets partially or totally disabled and can’t return to work.
Nebraska Workers’ Compensation Rates
Nebraska workers’ compensation rates vary and depend on several factors. If your business and employees face more risks, your policy may be more expensive. For example, workers’ comp for a construction business will likely cost more than for a consulting company. Other factors that can affect the cost of workers’ comp for your business include your:
- Payroll
- Business experience
- Claims history
- Class codes
You can use this formula to help estimate your business’ workers’ compensation rate:
Workers’ Class Code Rate X Claims Experience Modifier X (Payroll / $100) = Premium**
Class codes are based on the type of job workers do. The experience modifier is based on your business’ claims history. Generally, if you have a safe business, it can lower your workers’ comp rate.
Some businesses may not be able to get workers’ comp from a private insurance carrier.5 This can happen if your business hasn’t been open long enough or if you’ve had many claims in the past.
If you can’t get workers’ comp through a private insurance carrier, you may have to get it through Nebraska’s assigned risk pool. In these cases, the state of Nebraska partners with an insurance company to provide your workers’ comp coverage.
Nebraska Workers’ Compensation for Independent Contractors
Under Nebraska’s workers’ compensation law, you don’t need to have workers’ comp coverage for independent contractors, but the law doesn’t specifically define what an independent contractor is. Instead, the court decides on a case-by-case basis if an independent contractor with a work-related injury or illness is an employee.6
Some factors they can use to determine their decisions are:7
- How much control you have over their work
- If the contractor can work for others while working for you
- Whether the contractor is working under your direction or without supervision
- The skills required to do the work
- Who supplies tools and equipment
- The length of employment
- How you pay the contractor
- If the work is part of your regular business
- Whether there is an assumed employer/employee relationship
The Nebraska Supreme Court’s website has additional information on the 10-factor test you can use to determine if a worker is an employee or independent contractor.
Nebraska Workers’ Comp Fee Schedule
The Nebraska workers’ comp fee schedule determines billing and payment policies for physicians treating a work-related injury or illness.
Filing a First Report of Injury and Nebraska Workers’ Compensation
You’re responsible for reporting your employee’s injury to the Nebraska Workers’ Compensation Court within 10 days of finding out about it.8 Insurers have 30 days to investigate the claim before having to provide workers’ compensation benefits.9
How Do I File a Workman’s Comp Claim in Nebraska?
To file a claim for workman’s comp in Nebraska, visit our workers’ comp claims page today.
Get more of your workers’ compensation questions answered from the professionals at The Hartford. Or get a quote for coverage in Nebraska today.
Last Updated: October 10, 2023
** This is a simplified calculation for educational purposes only. Actual premium calculations can be more complex. Experience mods are subject to state requirements and do not apply to every policy.
1,3 Nebraska Legislature, “Statute 48-106”
2 Nebraska Workers’ Compensation Court, “Benefit Rates”
4 Nebraska Workers’ Compensation Court, “Employer Frequently Asked Questions”
5 Nebraska Department of Insurance, “Nebraska Workers’ Compensation Insurance Plan”
6 Nebraska Workers’ Compensation Court, “Employer Frequently Asked Questions”
7 Nebraska Supreme Court, “Factors Considered When Determining Whether a Worker Is an Independent Contractor or an Employee”
8,9 Nebraska Workers’ Compensation Court, “Nebraska Workers’ Compensation Court Information Sheet: Rights & Obligations Under Nebraska Workers’ Compensation Law”
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