Nebraska , States

Nebraska Workers’ Comp Insurance: What to Know in 2025

November 19, 2025

If you run a business in Nebraska, workers’ compensation insurance is not optional—it’s a legal requirement. Whether you manage a grain farm near Grand Island or operate a roofing crew in Omaha, Nebraska Workers’ Comp Insurance helps protect your employees—and your business—when injuries happen.

This 2025 guide explains who needs coverage, what it includes, how much it costs, and how to stay compliant with NE Workers’ Comp Requirements.

Who Needs Workers' Comp Coverage in Nebraska?

In Nebraska, nearly every employer must carry workers’ comp—even if they only have one employee. The law applies to:

Full-time, part-time, and seasonal employees
Teenage workers, interns, and temporary staff
Businesses in retail, construction, agriculture, healthcare, manufacturing, and hospitality

You’re required to buy a policy from a private carrier or apply to self-insure if you meet Nebraska’s financial standards. The Nebraska Workers’ Compensation Court regulates compliance.

Some exemptions include:

Sole proprietors with no employees
Business partners without employees
Certain domestic household workers (like live-in nannies or cleaning staff) These workers can be covered if the employer chooses to provide coverage.
Agricultural employers who employ only related employees, OR agricultural employers who employ fewer than 10 unrelated, full-time employees for 13 calendar weeks in a calendar year

But remember: Just one uncovered worker can expose your business to penalties and lawsuits.

Key Benefits of Nebraska Workers' Comp Insurance

A workers’ compensation policy in Nebraska provides crucial protections. It ensures that your business isn’t financially responsible for medical bills or wage losses following an injury. Benefits include:

Medical Coverage: Pays for hospital visits, surgeries, physical therapy, and prescriptions
Wage Replacement: Replaces a portion of wages while an employee recovers
Vocational Rehabilitation: Covers training or placement help if the injured worker can’t return to the same job
Death Benefits: Supports surviving family members if a fatal workplace injury occurs

Having the right coverage helps you stay aligned with NE Workers’ Comp Compliance rules and reduces the risk of litigation.

If your business can’t get a policy in the voluntary market—because of your claims history or industry risk—the Nebraska Workers Compensation Insurance Plan (NWCIP) assigns you coverage to keep you compliant.

Industry-Specific Workers' Comp NE Risks

Some industries in Nebraska are more dangerous than others. If your business operates in agriculture, healthcare, or construction, you’re more likely to experience claims.

Common injury sources include:

Slips and Falls: Especially in warehouses or hospitals where floors can be slick
Overexertion: Lifting feed bags, heavy equipment, or repetitive motion in manufacturing
Caught-in-Machinery Accidents: Common on farms using combines or in plants using conveyors

Nebraska-specific risks:

Severe Weather: Ice storms in winter raise fall risks; summer heat can cause heatstroke
Remote Job Sites: Many rural businesses are far from hospitals, delaying care
Heavy Machinery Use: Increases injury likelihood during planting or harvesting seasons

According to national safety data, average claim costs range from $50,000 to over $90,000, depending on injury type and industry. For example, motor vehicle injuries cost the most, followed by burns and fall-related trauma.

Nebraska Workers' Comp Costs: What You'll Pay

Nebraska workers’ compensation rates typically range from approximately $0.96 to $1.18 per $100 of payroll, depending on industry classification and other factors:

Payroll Size: More payroll = higher total premiums
Industry Classification: High-risk fields like roofing cost more than office jobs
Claims History: If you’ve had recent claims, expect higher future premiums
Safety Programs: You can earn discounts by implementing workplace safety protocols or training

Ways to save:

Work with a carrier that offers loss control services
Develop and document your safety policies
Make sure you don’t misclassify job roles—that error inflates premiums

Nebraska rates are generally lower than in Colorado but slightly higher than South Dakota, mainly because of different risk levels and industry concentrations.

Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.

Workers' Compensation Claims Process Nebraska

The Workers’ Compensation Claims Process Nebraska businesses must follow is time-sensitive. Here’s how it works:

Employee Reports the Injury: As soon as possible, preferably immediately
You Must File a First Report of Injury: Within 10 days of notice
Medical Evaluation Begins: Either by your authorized provider or one chosen by the employee
Ongoing Benefits: Are based on medical reports, wage history, and disability classification
Disputes: If disagreements arise, the Nebraska Workers’ Compensation Court holds hearings. Appeals can reach the Nebraska Court of Appeals or even the State Supreme Court

Missing a filing deadline could result in delayed benefits or legal penalties.

2025 Legal Updates Affecting NE Workers' Comp Compliance

Stay aware of recent rule changes:

June 2023: Legislative bill 426 reduced the number of workers’ compensation judges from 7 to 6.
The maximum weekly income benefit (Temporary Total Disability) became $1,084.00 per week on July 1, 2024, and remains at this rate through June 30, 2025. Effective July 1, 2025, this maximum will increase to $1,137.00 per week.
Early 2025: Medical billing rules (#2–#48) updated, along with the state’s medical fee schedule

Following these updated rules is key to maintaining full NE Workers’ Comp Compliance.