# Captive Programs for Nevada Contractors and Developers Under NRS Chapter 694C URL: https://mycontractorsinsurancequote.com/construction-captive-insurance-programs/nevada Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC Nevada licenses pure, association, agency, rental and sponsored captives under NRS chapter 694C, with minimum capital and surplus from $200,000 for a pure captive to $800,000 for a rental captive. A Nevada captive may not provide personal auto coverage directly, but it may write excess workers' compensation for its parent and affiliates and reinsure a certified self-insured employer's program. Fit and terms depend on the program, the carriers and the firm's individual risk, and any captive is subject to Division of Insurance approval and underwriting. ## Key Decision Points - NRS 694C.060 recognizes pure, association, agency, rental and sponsored captives and state-chartered risk retention groups. - Minimum capital and surplus under NRS 694C.250 is $200,000 for a pure captive, $500,000 for association and sponsored captives, $600,000 for agency and $800,000 for rental. - A Nevada captive may not provide personal auto directly; it may write excess workers' compensation for its parent and reinsure a certified self-insurer. - Direct premium tax runs from 0.4 percent down to 0.075 percent in tiers, with a $5,000 minimum and a $175,000 cap. - Nevada employers secure comp through a private carrier, as a certified self-insured employer or through a certified association of self-insured employers. ## The Captive Types Nevada Licenses NRS 694C.060 defines a captive insurer as a licensed pure, association, agency, rental or sponsored captive, or a state-chartered risk retention group. A pure captive may insure only the risks of its parent and affiliated companies or controlled unaffiliated businesses. A sponsored captive funds its participants through protected cells, and a rental captive lets businesses use the captive without owning it. The Commissioner of Insurance and the Division of Insurance regulate Nevada captives. That range gives a Nevada contractor or developer several entry points: a company of its own, a seat in an association captive or a cell in a sponsored captive. Each is an option for an established firm to evaluate, not a default, and a feasibility review decides whether any of them fits. How these structures differ in control and shared risk is explained in [group, cell and single-parent captives compared](https://mycontractorsinsurancequote.com/resources/group-vs-single-parent-captive). ## Capital, Governance and a Nevada Presence NRS 694C.250 sets minimum capital and surplus of $200,000 for a pure captive, $500,000 for an association captive, $600,000 for an agency captive, $800,000 for a rental captive and $500,000 for a sponsored captive or risk retention group, generally in cash or an irrevocable letter of credit. A dormant captive needs $25,000. Nevada also asks for a presence in the state. The board meets in Nevada at least once a year, the principal place of business is in Nevada and at least one board member is a Nevada resident. How capital and governance choices are made is set out in our [captive feasibility and formation steps](https://mycontractorsinsurancequote.com/resources/construction-captive-feasibility). ### Illustrative scenario: A Las Vegas Developer Studies a Sponsored Cell A Las Vegas developer with several rental communities and steady general liability losses asks whether a captive could finance a retained layer across its portfolio. The study compares a pure captive, with $200,000 of minimum capital and a Nevada board presence, against a cell in a Nevada sponsored captive. The cell needs less capital and avoids running a company, and the premium tax applies per cell under NRS 694C.450. Its contractors' workers' compensation is unaffected because the developer has few employees. The details are hypothetical, and a real decision would depend on the sponsor, the regulator and the carriers involved. ## What a Nevada Captive May and May Not Write Under NRS 694C.300, a captive may write the forms of insurance the statute lists, subject to limits. It may not directly provide personal motor vehicle coverage. It may write excess workers' compensation for its parent and affiliates, and it may reinsure a parent's or affiliate's self-funded workers' compensation if that employer is certified by the Commissioner as a self-insured employer. Reinsurance otherwise follows NRS 694C.350. For a contractor, that typically means general liability and commercial auto layers can be financed in a captive, while primary workers' compensation stays with a carrier or a certified self-insurance arrangement that the captive may support. How these lines fit a Nevada GC's program is covered in [Nevada general contractor licensing and insurance](https://mycontractorsinsurancequote.com/nevada/audiences/general-contractors). ## Premium Tax and Independently Procured Insurance NRS 694C.450 taxes direct premiums at 0.4 percent on the first $20 million, 0.2 percent on the next $20 million and 0.075 percent above that, with lower rates on assumed reinsurance. The annual tax has a $5,000 minimum and a $175,000 cap, applied per cell for sponsored captives, and a one-time $5,000 credit applies. A Nevada insured that buys coverage directly from a nonadmitted insurer pays tax on that independently procured insurance at the rate that applies to authorized insurers, which is 3.5 percent. That matters when a Nevada company joins a captive domiciled in another state. ## Nevada Workers' Compensation Beside a Captive NRS 616B.612 requires covered employers to provide and secure compensation. NRS chapter 616B recognizes three routes: buying from an authorized private carrier, becoming a self-insured employer certified by the Commissioner after showing financial ability and posting security, or joining a certified association of self-insured public or private employers. The Division of Insurance's self-insured workers' compensation section oversees employers and associations under those sections. Because a Nevada captive may reinsure a certified self-insurer's program and write excess comp for its parent, larger contractors sometimes study self-insurance and a captive together. That combination needs the Commissioner's certifications and careful structuring with counsel. NDOT and one-call rules for civil firms are covered in [Nevada civil contractor insurance and bonds](https://mycontractorsinsurancequote.com/nevada/audiences/civil-infrastructure-contractors). ## Before You Ask for a Quote ### What to Gather - Loss runs for each line for five or more years - A chart of the parent, affiliates and any controlled unaffiliated businesses - Financial statements for capital planning - Current workers' compensation carrier or self-insurance status - Contracts that require an admitted carrier ### What to Ask the Insurer or Surety - Which Nevada captive type fits our size: pure, association or a sponsored cell? - What capital will the Division likely expect above the minimum? - How would the tiered premium tax and the $5,000 minimum apply to us? - Could the captive support excess or reinsured comp under NRS 694C.300? - Who will serve as the Nevada-resident director and captive manager? ## Broker Notes **Quick Answer:** Nevada licenses pure, association, agency, rental and sponsored captives under NRS chapter 694C, with capital minimums from $200,000 to $800,000. A captive may not provide personal auto directly but may write excess comp for its parent and reinsure a certified self-insurer, and it pays a tiered premium tax with a $5,000 minimum. **Common Mistake:** Planning primary workers' compensation in a Nevada captive. The statute allows excess comp and reinsurance of a certified self-insurer, so primary comp typically stays with a carrier or a certified self-insurance arrangement. **Broker Perspective:** Nevada's sponsored and rental structures can let a mid-size firm test a captive without forming a company, so we compare a cell with a pure captive on the same loss data. **Coverage Impact:** The captive finances retained layers; coverage terms come from the fronting policies, reinsurance and endorsements issued for the program. ## Questions Buyers Ask ### How much capital does a Nevada pure captive need? NRS 694C.250 sets $200,000 of capital and surplus for a pure captive, generally in cash or an irrevocable letter of credit. The Division may expect more for construction risks. ### Can a Nevada captive write our workers' compensation? Not as primary coverage. NRS 694C.300 allows excess workers' compensation for the parent and affiliates and reinsurance of a certified self-insured employer's program. ### What premium tax does a Nevada captive pay? NRS 694C.450 taxes direct premiums at 0.4 percent on the first $20 million, 0.2 percent on the next $20 million and 0.075 percent above that, with a $5,000 minimum and a $175,000 cap. ### Does a Nevada captive need anyone based in Nevada? Yes. The board meets in Nevada at least once a year, the principal place of business is in Nevada and at least one board member is a Nevada resident. ## Official Sources 1. [NRS chapter 694C (captive insurers)](https://www.leg.state.nv.us/nrs/nrs-694c.html), Nevada Legislature. Pure, association, agency, rental and sponsored captives; capital and surplus minimums; no direct personal auto; excess workers' compensation and reinsurance of certified self-insurers; tiered premium tax. Verified 2026-10-25. 2. [NRS chapter 685A (surplus lines and independently procured insurance)](https://www.leg.state.nv.us/nrs/nrs-685a.html), Nevada Legislature. An insured whose home state is Nevada pays tax on independently procured insurance at the rate for authorized insurers. Verified 2026-10-25. 3. [NRS 680B.027 (premium tax rate)](https://www.leg.state.nv.us/nrs/nrs-680b.html), Nevada Legislature. Premium tax on authorized insurers at 3.5 percent. Verified 2026-10-25. 4. [NRS chapter 616B (securing workers' compensation)](https://www.leg.state.nv.us/nrs/nrs-616b.html), Nevada Legislature. Employers secure compensation through a private carrier, as a certified self-insured employer or through a certified association of self-insured employers. Verified 2026-10-25. 5. [Captive Insurers](https://doi.nv.gov/Captive-Insurance/), Nevada Division of Insurance. Describes captives as regulated self-insurance and links the captive types, application and annual filing pages. Verified 2026-10-25. ## Related Decisions - [captive, large deductible or self-insured retention](https://mycontractorsinsurancequote.com/resources/captive-vs-large-deductible) - [risk retention groups](https://mycontractorsinsurancequote.com/resources/risk-retention-groups-for-contractors) - [construction captive programs](https://mycontractorsinsurancequote.com/construction-captive-insurance-programs) - [Nevada developer insurance and bonds](https://mycontractorsinsurancequote.com/nevada/audiences/developers) - [Nevada construction insurance rules](https://mycontractorsinsurancequote.com/nevada) - [group or single-parent captive](https://mycontractorsinsurancequote.com/resources/group-vs-single-parent-captive) --- Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283 Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. A review is not guaranteed and is limited to insurance considerations. It is not legal advice and is not a substitute for advice from your own legal counsel, which you may need before signing a contract or obtaining coverage. Insurance and surety services are provided through Gleason Insurance Brokers, LLC. Site information is educational and does not constitute legal advice, a binder, an offer of coverage, a guarantee of eligibility or confirmation of policy terms. Insurance conditions are governed by actual issued policies; surety rights and obligations are governed by bond and indemnity documents.