📊 Nevada Workers’ Compensation: Proposed 2026 Rate Changes & What Employers Should Know

Workers’ compensation insurance continues to evolve in Nevada, and recent filings from the National Council on Compensation Insurance (NCCI) suggest meaningful changes that employers — especially those with challenging risk profiles — should understand ahead of their next renewal.

🧾 What’s Being Proposed for 2026

In October 2025, NCCI filed a proposal with the Nevada Division of Insurance that, if approved, would significantly increase both voluntary market loss costs and Assigned Risk Pool rates effective March 1, 2026.

The proposal calls for a +21.9% increase to:

• Voluntary market loss costs

• Assigned Risk market rates

This means the base cost used by insurers to calculate premiums could be materially higher for all employers — not just those with higher experience modification factors (eMods). 

📉 Why Rates Are Trending Up

The NCCI analysis points to a combination of factors contributing to the proposed rate increase:

• Deterioration in loss experience: Recent data through 2023 shows more frequent and severe claims compared with prior years. 

• Large losses: Elevated large loss activity, particularly in sectors like construction and leisure/hospitality, has influenced overall cost trends. 

• Flattening decline in lost-time claims: After years of gradual improvement, lost-time claim frequency has leveled out in Nevada, adding upward pressure on costs. 

• Payroll cap effects: Nevada’s unique payroll cap for premium calculations means wage growth isn’t fully reflected in premium bases, which can worsen loss ratios when wages rise. 

These elements combined are driving the actuarial need for higher loss costs in both voluntary and Assigned Risk markets.

🧠 What This Means for Employers

If the proposed changes are approved, businesses in Nevada could see a notable increase in their workers’ compensation premiums when renewed after March 1, 2026.

Importantly:

• Assigned Risk Pool rates (for employers who cannot secure coverage in the standard market) would rise along with voluntary market base costs. 

• Employers with high eMods already feeling upward pressure on premiums are likely to see compounded impact.

• Even employers with good claims histories may pay more due to the overall shift in loss costs.

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📌 Why This Matters for Planning

Workers’ comp is one of the largest controllable costs for many employers. Knowing that base loss costs and Assigned Risk rates may increase substantially gives employers time to:

• Audit current controls: Safety programs and return-to-work practices can impact eMod values over time.

• Explore market alternatives early: Standard markets, mutual carriers, captives, or self-insured groups may offer options before premiums reset.

• Compare quotes before renewal: Shop proactively rather than at the last minute.

🛠 A Reminder on Assigned Risk Requirements

In Nevada, to access the Assigned Risk Pool, producers generally must document that a risk was refused by at least two standard insurance markets before placement. This ensures Assigned Risk remains a plan of last resort, and isn’t treated as the first option — which could mean higher cost with fewer strategic placements.

📅 What Employers Should Do Next

While rate proposals are subject to approval and could change, prudent planning can help protect your business from unexpected cost shocks:

• Review your current experience modifier and loss history well ahead of renewal.

• Talk with your agent or risk specialist about options beyond automatic Assigned Risk placement.

• Stay informed on regulatory updates and filings as they move through the approval process.

This kind of preparation doesn’t guarantee outcomes — but it positions you to make informed decisions in a changing cost environment.

If you’d like help understanding how these proposed changes might affect your business or exploring alternative workers’ compensation solutions, feel free to reach out — we’re happy to walk you through it.