SOLE PROPRIETORS
WORKERS´ COMPENSATION COVERAGE CONTRACT REQUIREMENT

Workers’ Compensation and Employer’s Liability Insurance is always required for any contractor / vendor who uses employees or subcontractors. Nevada law allows the sole proprietors to reject workers’ compensation coverage if they do not use employees or subcontractors in the performance of work under the contract.

Workers’ Compensation coverage can be waived if the contractor is performing the service as a sole proprietor. Sole proprietor contractors can reject workers’ compensation coverage per The Nevada Revised Statutes NRS 616B.627 and NRS 617.210. If a contractor has rejected workers’ compensation coverage under applicable Nevada law, the contractor must indicate the basis for the rejection of coverage and complete, sign and have notarized an Affidavit of Rejection of Coverage. The Affidavit must be completed, signed and notarized prior to performance of any work.

Sample Affidavit of Rejection of Coverage