Most employers with three or more employees in North Carolina are required to carry Workers' Compensation coverage, including sole proprietors, limited liability companies, and other business structures unless that employer has been specifically approved for self-insurance.
Casual employees of a business or domestic servants of the household are not required to be covered by Workers' Compensation. Sole proprietors, LLC members, and partners are not counted as employees but can choose to be covered by workers compensation.
North Carolina employers who provide Workers' Compensation coverage must report any injury or occupational illness to the insurer. Additionally, work-related injuries that cause an employee to miss work for more than one day or result in medical expenses greater than $2,000, require that the employer or carrier to notify the state.
Failure to carry the required Workers' Compensation coverage in North Carolina can result in criminal charges ranging from misdemeanor to felony. Fines of up to $100 per day may also be assessed for non-compliance. If an employee is injured when the employer does not have the required Workers' Compensation coverage, the employer can be held liable for the related medical expenses and wage replacement benefits for that employee.
Can a business be exempt from Workers' Compensation in North Carolina?
North Carolina requires Workers' Compensation coverage for most employers that employ three or more employees. However, sole proprietors, members of LLCs, and partners are not automatically counted as employees and can choose to be covered at their discretion.
What Does North Carolina Workers' Compensation Cover?
In North Carolina, Workers' Compensation insurance pays for approved medical treatment that may be required due to a work-related injury or occupational illness. North Carolina Workers' Compensation also provides income replacement for lost wages due to temporary disability caused by a workplace injury. Job retraining may be available if the injured worker is unable to return to their previous job.
Where Can I Buy North Carolina Workers’ Compensation Insurance?
Employers in North Carolina can purchase Workers' Compensation coverage through agents or brokers or through online portals like CoverWallet, which can also provide additional insurance policy types for your business. North Carolina does not have a state fund for Workers' Compensation but the state does provide a high-risk pool which can help to place coverage for high-risk businesses.
How Much Will I Pay for Workers’ Compensation Insurance in North Carolina?
Similar to in other states, Workers' Compensation rates in North Carolina are determined by a number of factors, including the type of industry, your company's claim history, and your payroll totals. CoverWallet’s team can give you a quote on Workers' Compensation coverage and other essential insurance coverages for your business.