Who Needs Business Insurance in Nebraska

While business insurance is not universally required in Nebraska, certain policies are mandatory for most employers and businesses:

• Any business with one or more employees must carry workers’ compensation insurance.

• Businesses that own or use vehicles for work must have commercial auto insurance.

• Some professions and industries (e.g., contractors, food service, healthcare) may need to provide proof of general liability or professional liability insurance to operate or obtain a license.

• Businesses leasing property or working with clients often need general liability insurance as required by landlords or contracts.

Even when not required, insurance helps shield your business from lawsuits, property damage, and financial loss.

Workers’ Comp: When It’s Required

Nebraska law requires nearly all employers with one or more employees (full-time, part-time, minors, or seasonal) to carry workers’ compensation insurance. This policy covers medical costs, lost wages, and disability benefits for employees injured or made ill on the job.

Exemptions include:

• Sole proprietors, partners, and LLC members

• Executive officers with at least 25% ownership in a corporation

• Executive officers of nonprofits earning $1,000 or less

• Household/domestic workers

• Most agricultural employers (unless employing 10+ unrelated full-time workers for 13 weeks in a year)

• Federal employees, railroad workers, and volunteers

Penalties for non-compliance: Civil fines up to $1,000 per violation (per day), possible criminal charges, business closure, and loss of legal defenses in court.

Commercial Auto Insurance Basics

All business-owned vehicles in Nebraska must be covered by commercial auto insurance. Minimum required coverage is:

• Bodily injury: $25,000 per person / $50,000 per accident

• Property damage: $25,000 per accident

• Uninsured/underinsured motorist: $25,000 per person / $50,000 per accident

Personal auto policies do not cover vehicles used for business purposes. Hired and Non-Owned Auto Insurance (HNOA) is recommended if employees use personal, leased, or rented vehicles for work.

Penalties for non-compliance: Class II misdemeanor, possible suspension of license plates/registration, and reinstatement fees.

Professional Liability for Certain Jobs

Professional liability insurance (errors & omissions/E&O) is not required by Nebraska law for most businesses, but is highly recommended and often required by clients or licensing boards for:

• Lawyers, doctors, architects, engineers, IT professionals, real estate brokers, consultants

• Professions where errors, omissions, or negligence could cause financial loss to clients

This policy covers claims of mistakes, undelivered services, or negligent advice. It does not cover bodily injury or property damage, which are handled by general liability insurance.

Is General Liability Insurance Mandatory?

General liability insurance is not required by Nebraska law for most businesses. However, it is:

• Required for certain occupations to obtain or maintain a business license

• Often mandated by landlords, lenders, or client contracts

• Strongly recommended for all businesses to protect against third-party bodily injury, property damage, and personal/advertising injury

Average cost: $27–$48 per month, depending on business size and industry.

Other Useful Coverages for Businesses

Nebraska businesses should consider these additional policies for comprehensive protection:

• Business Owner’s Policy (BOP): Bundles general liability and property insurance.

• Commercial Property Insurance: Covers buildings, inventory, and equipment.

• Business Interruption Insurance: Replaces lost income after a covered disaster.

• Cyber Liability Insurance: Protects against data breaches and cyberattacks.

• Umbrella Insurance: Increases the liability limits above existing policies.

• Employment Practices Liability: Covers claims of wrongful termination, discrimination, or harassment.