State
Nebraska business insurance requirements
Nebraska business insurance: workers' comp from the first employee, no state fund, 25/50/25 auto limits, a 50% comparative fault bar and a 3% surplus lines tax.
Workers' compensation
| Who must carry it | Required for every resident employer, and every nonresident employer performing work in Nebraska, with one or more employees in its regular trade or business, and for the state and its agencies (Neb. Rev. Stat. 48-106) |
|---|---|
| Employee threshold | 1 employee |
| Who can be excluded | Sole proprietors, partners and LLC members are not employees unless they elect coverage in writing with the insurer; executive officers owning 25% or more of a corporation's stock are excluded unless they elect in (48-115(9)-(10)); household domestic servants, interstate railroads, and agricultural employers with only related employees or fewer than 10 unrelated full-time employees are exempt (48-106(2)) |
| Construction rule | No separate threshold; an owner or contractor that does not require its contractor or subcontractor to carry comp can be jointly liable for the sub's injured workers (48-116) |
| Market | Competitive private market |
| State fund | No state fund; employers unable to buy coverage normally use the Nebraska Workers Compensation Insurance Plan |
| Rating bureau | NCCI |
| Penalty for not carrying it | Willful failure to insure is a Class I misdemeanor; the court may impose a penalty of up to $1,000 per violation, each day a separate violation, and enjoin the employer from doing business; authorized officers, members and managers are personally liable for benefits (48-145.01) |
| Workers' comp agency | Nebraska Workers' Compensation Court |
| Agency phone | 800-599-5155 |
| Agency website | newcc.gov |
Employee benefit mandates
| State disability insurance | No state mandate |
|---|---|
| Paid family and medical leave | No state program |
Commercial auto
| Minimum liability limits | 25/50/25 ($25,000 per person and $50,000 per accident for bodily injury, $25,000 property damage) (Neb. Rev. Stat. 60-310); FMCSA limits apply to interstate motor carriers |
|---|
Liability law
| Negligence rule | Modified comparative fault (50% bar); a claimant whose negligence is equal to or greater than that of all defendants recovers nothing (Neb. Rev. Stat. 25-21,185.09) |
|---|---|
| Time limits to sue | Personal injury and property damage 4 years (Neb. Rev. Stat. 25-207); written contracts 5 years (25-205) |
Insurance regulator
| Insurance regulator | Nebraska Department of Insurance |
|---|---|
| Consumer hotline | 402-471-2201 |
| Website | doi.nebraska.gov |
| Surplus lines tax | 3% of gross premiums less return premiums, paid quarterly with the verified statement due March 1, June 1, September 1 and December 1 (Neb. Rev. Stat. 44-5506, in effect in 2026) |
Laws that shape business insurance in Nebraska
- Joint and several liability for economic damages only; noneconomic damages are several, Neb. Rev. Stat. 25-21,185.10
- Claimant 50% or more at fault recovers nothing, Neb. Rev. Stat. 25-21,185.09
- Executive officers owning 25% or more excluded from comp unless they elect in, Neb. Rev. Stat. 48-115(9)
- Daily civil penalty for uninsured employers, Neb. Rev. Stat. 48-145.01
- Statutory employer liability for uninsured subcontractors, Neb. Rev. Stat. 48-116
Nebraska requires workers' compensation from the first employee in the employer's regular business, and that includes out-of-state contractors working in Nebraska "for any length of time." There is no state fund; coverage comes from licensed private insurers, self-insurance approved by the Workers' Compensation Court, or the state's assigned risk plan. Hail and tornadoes drive the property market, and two features of tort law, a 50% fault bar and several-only liability for noneconomic damages, help keep liability costs moderate.
Workers' compensation requirements
The act applies "to every resident employer in this state and nonresident employer performing work in this state who employs one or more employees in the regular trade, business, profession, or vocation of such employer" (Neb. Rev. Stat. 48-106). Household domestic servants and interstate railroads are outside it. Farms are covered only once they employ 10 or more unrelated full-time employees on each working day for 13 weeks in a calendar year, and a farm that crosses the line has to keep coverage through the next full calendar year.
Owners are out by default. Sole proprietors, partners and LLC members "actually engaged in the business on a substantially full-time basis" are covered only if they elect in writing filed with the insurer. Executive officers who own less than 25% of the corporation's common stock are employees; those owning 25% or more are not, unless they file a written election with the corporate secretary and the insurer (48-115). See can owners and officers exclude themselves from workers' comp?.
| Rule | Nebraska |
|---|---|
| Who must carry it | Employers with 1+ employee in the regular business, including nonresident employers |
| Construction | No separate threshold; upstream liability if a sub's coverage was not required |
| Exempt employment | Domestic servants, interstate railroads, smaller farm operations |
| Owner opt-outs | Sole proprietors, partners and LLC members out unless they elect; 25% officers out unless they elect |
| Penalty | Class I misdemeanor; up to $1,000 a day; injunction |
| State fund | None; Nebraska Workers Compensation Insurance Plan |
A business that uses "any scheme, artifice, or device" to get work done without being responsible for workers' comp is jointly liable with the immediate employer. The safe harbor is simple: an owner or contractor that, in good faith, requires its contractor or subcontractor to carry a comp policy from a licensed insurer is not caught by the rule (48-116). Put the requirement in the subcontract and collect a certificate of insurance; the court's online coverage lookup confirms that a policy is in force. Misclassified contractors raise the same issue; see independent contractors and workers' comp: the misclassification risk.
Willfully failing to insure is a Class I misdemeanor. The compensation court or district court can order a penalty of up to $1,000 per violation, with "each day of continued failure" a separate violation, and the employer can be enjoined from doing business in Nebraska until it complies. Officers, LLC members and managers who had authority to buy coverage and willfully did not are personally liable for benefits and penalties (48-145.01). The court's FAQ adds that an injured worker may also sue the uninsured employer in district court (newcc.gov).
"Currently, there is no state fund licensed to provide workers' compensation coverage in Nebraska," the court says. Employers buy from licensed private insurers, including through the Nebraska Workers Compensation Insurance Plan for those the voluntary market declines, or get court approval to self-insure, which requires at least five years in business and 100 employees. NCCI files loss costs. See workers' compensation insurance: how it works and assigned risk and residual markets for workers' comp.
Disability and paid leave mandates
Nebraska has no state disability insurance program and no paid family and medical leave program. Disability and leave benefits are voluntary. For employees in mandate states, see state disability and paid family leave programs: every mandate in 2026.
Commercial auto requirements
A Nebraska automobile liability policy must provide at least $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people in one accident and $25,000 for property damage (Neb. Rev. Stat. 60-310). Those are minimums; contracts usually call for $1 million. Interstate for-hire carriers need at least $750,000 under federal rules; see FMCSA insurance requirements and filings for motor carriers and commercial auto insurance: what it covers and what it leaves out.
The business insurance market in Nebraska
Severe convective storms are the dominant property peril. FEMA declared major disasters for the April 2024 storms and tornadoes (DR-4778), storms, tornadoes and flooding from May 20, 2024 (DR-4808), wildfires that began March 12, 2026 (DR-4920) and storms, tornadoes and flooding from May 15, 2026 (DR-4928). Expect separate wind and hail deductibles, often a percentage of insured value, and roof age questions on submissions; see severe convective storms: hail, tornadoes and rising insured losses. Flood is excluded from standard property forms, and NFIP commercial limits stop at $500,000 for the building and $500,000 for contents, with the program authorized only through December 11, 2026 (FEMA).
Surplus lines licensees pay 3% of gross premiums, less returns, with quarterly statements due March 1, June 1, September 1 and December 1, and may not rebate any part of the tax (Neb. Rev. Stat. 44-5506). Nebraska has no FAIR plan: none appears among the plans in the Property Insurance Plans Service Office's member list (PIPSO), so commercial property the standard market declines generally goes to the surplus lines market. See surplus lines taxes, stamping fees and diligent search.
Liability law that affects premiums
Nebraska reduces a claimant's damages by his share of negligence and bars recovery entirely when that negligence "is equal to or greater than the total negligence of all persons against whom recovery is sought" (Neb. Rev. Stat. 25-21,185.09). With multiple defendants, economic damages are joint and several but noneconomic damages are several only, so a defendant pays pain-and-suffering damages only in proportion to its own fault, unless the defendants acted in concert (25-21,185.10).
Injury and property damage suits generally have four years (25-207); written contracts five (25-205).
Insurers based in Nebraska
- Berkshire Hathaway is headquartered in Omaha; its insurance group wrote $18.64 billion in U.S. commercial lines in 2025 by NAIC data, much of it through the companies it calls the Berkshire Hathaway Primary Group.
Where to get help
- Nebraska Department of Insurance (doi.nebraska.gov): 402-471-2201; Insurance Complaint Hotline 877-564-7323 (in state). File complaints against insurers and agents through the department.
- Nebraska Workers' Compensation Court (newcc.gov): information line 800-599-5155 or 402-471-6468, for coverage questions, self-insurance and disputed claims. Staff can provide information but not legal advice.
Confirm your obligations with the court or a licensed broker, and compare states with the workers' comp and benefits requirements by state.
Sources
- nebraskalegislature.gov/laws/statutes.php?statute=48-106
- nebraskalegislature.gov/laws/statutes.php?statute=48-115
- nebraskalegislature.gov/laws/statutes.php?statute=48-116
- nebraskalegislature.gov/laws/statutes.php?statute=48-145.01
- newcc.gov/employers/employer-frequently-asked-questions
- newcc.gov/home/office-hours-and-contact-information
- nebraskalegislature.gov/laws/statutes.php?statute=60-310
- nebraskalegislature.gov/laws/statutes.php?statute=25-21%2C185.09
- nebraskalegislature.gov/laws/statutes.php?statute=25-21%2C185.10
- nebraskalegislature.gov/laws/statutes.php?statute=25-207
- nebraskalegislature.gov/laws/statutes.php?statute=25-205
- nebraskalegislature.gov/laws/statutes.php?statute=44-5506
- doi.nebraska.gov/
- fema.gov/disaster/4778
- fema.gov/disaster/4808
- fema.gov/disaster/4920
- fema.gov/disaster/4928
- floodsmart.gov/get-insured/buy-a-policy
- fema.gov/flood-insurance/rules-legislation/congressional-reauthorization
- pipso.com/members/
Requirements were checked against these sources on the review date below. Laws and thresholds change - confirm with the state workers' compensation agency or insurance department.
Profile last reviewed October 24, 2026