During the first three years of being a self-insurer, an employer must maintain a minimum net worth of:

The requirement for an employer to maintain a minimum net worth while operating as a self-insurer for workers' compensation in Nevada is specifically structured to ensure that the company has sufficient financial backing to cover potential claims. The threshold set at $2,500,000 reflects an amount that is viewed as necessary to protect employees while also ensuring that the employer can manage its liabilities effectively during the crucial initial years of self-insurance.

This minimum net worth provides a buffer that helps to guarantee payment of claims, thereby minimizing the risk to employees and the insurance system as a whole. The rationale behind having this specific amount is to ensure that only those employers with adequate financial resources can opt for self-insurance, as they need to be able to pay out any claims that occur.

Other amounts, while potentially significant, either do not align with the regulations or would create an undue burden on employers, which the law aims to avoid. Thus, $2,500,000 stands as the appropriate figure to maintain a balance between ensuring financial stability and encouraging a viable environment for self-insured employers.