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Workers’ Compensation Insurance Requirements in Nebraska
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Workers’ Compensation Insurance Requirements in Nebraska
Nebraska contractors operate in a pure private-insurance state where coverage is required the moment you hire your first employee. With Nebraska sitting just above the national median for overall premium cost, and concrete and plumbing trades running notably higher than electrical work, getting the right coverage at the right price matters for every job bid.
Nebraska Workers’ Compensation Legal Requirements
The Nebraska Workers’ Compensation Act (Neb. Rev. Stat. §§ 48-101 to 48-1,118) requires nearly all employers to carry coverage from the first employee, with limited exceptions addressed in § 48-106.
- Coverage is required starting with the 1st employee for virtually all Nebraska employers
- Sole proprietors, partners, LLC members, and corporate officers owning 25%+ of company stock are not considered ’employees’ and may exempt themselves, though they can elect coverage voluntarily
- Operating uninsured carries civil fines up to $1,000 per violation with each day of noncompliance counted separately, criminal exposure up to 1 year imprisonment and/or a $1,000 fine, and the loss of exclusive-remedy protection so an injured worker can sue directly for unlimited damages
- No blanket independent-contractor exemption certificate exists like in some states — general contractors typically require subs to carry their own coverage or sign a formal waiver
How Nebraska’s Workers’ Comp System Works
System type: Private Carrier Market
Nebraska is a pure private-carrier state with no state fund — employers buy coverage directly from a licensed private insurer or qualify for self-insurance, while the Nebraska Workers’ Compensation Court administers claims and disputes rather than selling policies. Nebraska ranks 23rd of 51 on the Oregon DCBS 2024 rate study with an index rate of 1.12, putting it just 3% above the national median overall.
How Nebraska’s Rates Compare by Trade
| Trade (NCCI Class Code) | National Rank (of 51) | Rate per $100 of Payroll |
|---|---|---|
| Roofing (Class 5551) | 26th of 51 | $9.64 |
| Electrical Wiring (Class 5190) | 30th of 51 | $2.22 |
| Plumbing NOC (Class 5183) | 22nd of 51 | $2.93 |
Source: Oregon Dept. of Consumer and Business Services, 2024 Workers’ Compensation Premium Rate Ranking Study (published June 2025) — the only study benchmarking all 50 states plus DC on a common industry mix.
Filing a Workers’ Comp Claim in Nebraska
An injured employee should notify their employer as soon as possible after an incident. The employer or insurer must then complete and submit a First Report of Injury (FROI) to the Nebraska Workers’ Compensation Court within 10 days of the employee’s report. The insurer has 30 days from that filing to accept, deny, or request additional information on the claim.
Penalties for Non-Compliance
Nebraska imposes civil fines up to $1,000 per violation, with each day of continued noncompliance treated as a separate violation, plus criminal exposure of up to one year in jail and/or a $1,000 fine, and uninsured employers lose exclusive-remedy protection against employee lawsuits (Nebraska Workers’ Compensation Court).
Resources: Nebraska Workers’ Compensation Court, NEWCC Employer FAQ, Nebraska DAS Risk Management – Workers’ Compensation
How Much Does Workers’ Comp Insurance Cost in Nebraska?
Nebraska sits close to the national median overall, but individual trades vary widely — roofing carries by far the highest base rate of the three core trades due to fall-related claims severity.
| Trade | Estimated Cost per $100 Payroll | What Drives It |
|---|---|---|
| Roofing | $9.64 (per the Oregon study’s Class 5551 rate) | Height-related injury severity and frequency |
| Electrical | $2.22 (Class 5190) | Lower claims frequency relative to other trades |
| Plumbing | $2.93 (Class 5183) | Strain and equipment-related injury claims |
What Moves the Price Up or Down
- Whether owners/LLC members elect voluntary coverage or exempt themselves
- Your experience modification factor from prior claims
- Total classified payroll across all trades on a project
- Which private carrier you select in Nebraska’s open market
Rates shown are from the Oregon DCBS 2024 Workers’ Compensation Premium Rate Ranking Study and represent base index comparisons, not a quote. Actual premium depends on experience mod, claims history, and payroll — get a Trade Safe quote for exact pricing.
Frequently Asked Questions
Does a Nebraska contractor with one employee need workers’ comp?
Yes. Nebraska law requires coverage from the first employee for nearly all employers under the Nebraska Workers’ Compensation Act.
Do sole proprietors in Nebraska have to carry coverage on themselves?
No. Sole proprietors, partners, LLC members, and corporate officers owning 25% or more of the company are not classified as employees and may exempt themselves, though they can elect voluntary coverage.
Is there a state fund for workers’ comp in Nebraska?
No. Nebraska is a pure private-carrier state with no state fund — coverage comes from licensed private insurers or through qualifying self-insurance.
What happens if a Nebraska employer is caught operating without coverage?
They face civil fines up to $1,000 per violation (compounding daily), possible criminal charges including up to a year in jail, and lose the legal protection that normally caps their liability for a workplace injury.
Workers’ compensation requirements can change — verify current rules with the Nebraska Workers’ Compensation Court before making coverage decisions.
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