Running a business in Las Vegas isn't like running one anywhere else. Sure, you've got the usual concerns—payroll, inventory, keeping the lights on—but you're also operating in a city where the hospitality industry drives 37% of the entire state's economy, where businesses run 24/7, and where serving alcohol isn't just common, it's practically expected. That unique business environment means your insurance needs are different too.
Here's what you need to know about protecting your Las Vegas business, whether you're running a restaurant on the Strip, managing a small retail shop in Henderson, or organizing events at convention centers.
What Business Insurance Is Actually Required in Nevada
Let's start with what's legally required. Nevada doesn't mess around when it comes to workers' compensation. If you have even one employee—full-time, part-time, doesn't matter—you need workers' comp coverage. This also applies to independent contractors and subcontractors. The average cost runs about $75 per month, though that varies based on your industry and the type of work your employees do. A desk job carries less risk than construction work, so rates reflect that difference.
Good news on workers' comp: Nevada has seen several years of rate decreases, including a 13.6% drop in 2022 and smaller decreases through 2024. The bad news? Rates are scheduled to increase 6.5% in March 2025. If you're shopping for coverage, do it now before that increase kicks in.
Commercial auto insurance is the other non-negotiable. Nevada requires it for any vehicle used solely for business purposes. The state mandates minimum liability limits of $25,000 per person for bodily injury, $50,000 per accident, and $20,000 for property damage. But here's the reality: those minimums won't cut it if something serious happens. Most insurance professionals recommend carrying $500,000 to $1 million or more in liability coverage. A single serious accident could easily exceed those state minimums, leaving your business on the hook for the difference.
Coverage You'll Need Even Though It's Not Legally Required
General liability insurance isn't required by Nevada law, but try finding a commercial lease without it as a requirement. Landlords want to know you're covered if a customer slips and falls in your space or if you accidentally damage the property. At an average of $42 per month, it's one of the most affordable protections you can buy. This policy covers legal costs from customer injuries, property damage you cause to others, and even claims of defamation or copyright infringement.
Commercial property insurance protects your physical assets—your building, equipment, inventory, furniture. Las Vegas might not have hurricanes, but fire, theft, and vandalism happen everywhere. If you've invested thousands or millions in your business location and what's inside it, property insurance ensures you can rebuild or replace what's lost.
Special Considerations for Las Vegas's Dominant Industries
The hospitality and entertainment sectors directly employ over 365,000 people in Nevada and support more than 436,000 jobs when you count indirect employment. If you're part of this industry, you face risks other businesses don't have to worry about.
Liquor liability is the big one. Standard general liability policies specifically exclude coverage for alcohol-related incidents. If you serve alcohol—whether you're a bar, restaurant, event venue, or catering company—you need separate liquor liability coverage. When someone gets injured by an intoxicated customer you served, your liquor liability policy handles the legal and medical costs. Most Las Vegas events require $1 million in liquor liability coverage, and that's the minimum you should carry even if it's not required for your specific situation.
Operating 24/7 creates its own challenges. Late-night and early-morning shifts can increase the risk of accidents and injuries. Make sure your workers' comp and general liability policies don't have time-of-day restrictions. Some insurers charge more for round-the-clock operations, but that's better than discovering you're not covered when a 3 AM incident occurs.
Event and Convention Coverage: A Must for Meeting Planners
Las Vegas is one of the top convention destinations in the country. If you organize events—festivals, concerts, trade shows, corporate gatherings, or weddings—you need special event insurance. This isn't the same as your regular business liability policy.
Events on city property or in city facilities require specific coverage amounts. The City of Las Vegas typically requires $1 million per occurrence and $2 million aggregate for general events. You'll also need to name the city, its officials, agents, and employees as additional insured parties on your policy. This requirement appears on an ACORD 25 form or similar certificate of insurance.
Event insurance costs vary widely based on size and scope. Small private events might cost as little as $66 to insure, while large public gatherings can run $125 to $1,000 or more. The cost depends on expected attendance, whether you're serving alcohol, the activities involved, and the duration of the event.
Bundling Policies: The Business Owner's Policy (BOP)
If you're buying general liability, commercial property, and business interruption coverage separately, stop. A Business Owner's Policy bundles these three coverages into one package at a lower price than buying them individually. BOPs are designed for small to medium-sized businesses and typically cost less while providing the same protection.
Business interruption coverage is the often-overlooked gem in a BOP. If your business has to close temporarily due to a covered loss—say a fire or major equipment breakdown—this coverage replaces your lost income and helps pay ongoing expenses like rent and payroll while you get back on your feet. For Las Vegas businesses operating in competitive markets where every day of closure means lost revenue to competitors, this protection is invaluable.
Getting the Right Coverage for Your Las Vegas Business
Every Las Vegas business is different, and the insurance you need depends on your specific industry, size, and operations. Start with the legally required coverage—workers' comp and commercial auto if you have vehicles. Add general liability because your lease almost certainly requires it and it's inexpensive protection against common risks.
From there, evaluate your industry-specific needs. Serving alcohol? You need liquor liability. Own your building or have expensive equipment? Add commercial property coverage. Organize events? Get special event insurance with the required limits. The hospitality industry in Las Vegas spends more than $4,800 per employee annually on health insurance alone—protecting your business adequately requires a similar commitment to comprehensive coverage.
Talk to an insurance agent who specializes in Nevada business coverage and understands Las Vegas's unique business environment. They can help you identify gaps in your coverage and find policies that fit your budget while protecting what you've built. With workers' comp rates set to increase in March 2025, there's no better time than right now to review your options and lock in current pricing.
