Workers’ Compensation Insurance: North Carolina

Workers’ Compensation Insurance NC: Everything You Need to Know

In North Carolina, workers’ compensation policies are a form of “no-fault” insurance that employers provide for their employees. Any business with three or more people must have workers’ compensation insurance in NC. 

This insurance covers medical bills, lost wages, and death benefits in the event of a work-related accident. 

Read on to learn everything you need to know. 

If you have questions or want to check the current prices, you can contact us today and get all the information you need fast and for free! 

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How Does Workers’ Comp Work in NC?

Even if you don’t have three or more employees, having workman’s comp insurance in NC should be considered as it protects your employees. It can provide them with medical and financial benefits. 

Additionally, it protects you from financial losses in case an employee gets hurt while doing the job. 

Businesses that operate without workers’ comp insurance in NC could be held responsible for paying the total costs of a workplace injury or occupational disease. These charges could be hundreds of thousands of dollars. 

Read next: The Ultimate Guide to Workers’ Compensation Insurance 

What Does Workers’ Compensation Insurance in NC Cover? 

  • Medical care
  • Disability benefits (temporary and partial benefits until the employee recovers)
  • Travel expenses (related to medical treatment)
  • Death benefits (for fatal accidents)
  • Permanent total disability benefits (for employees who are unable to go back to work)

Who is Exempt From Workers’ Compensation in NC?

Although the general rule requires employers with three or more employees to carry workers’ comp insurance in NC, there are some exemptions:

  • Casual employees
  • Employees of a household
  • Farm workers (if the employer has fewer than 10 full-time employees)
  • Federal government employees
  • Commission-based sellers of agricultural products
  • Some railroad workers because they are already covered under federal policies

What is the Cost of Workers’ Comp in NC?

How much is workers’ comp in NC? Premiums cost an average of $1,614, with 90% of premiums being less than $5,000. 

North Carolina workers’ compensation rates are influenced by several factors, including: 

  • Business location
  • Payroll
  • Number of employees
  • Industry
  • Risk factors
  • Coverage limits
  • Claims history

Read more: To save money, you could try Pay-As-You-Go Workers’ Comp Insurance. 

Is Workers’ Comp Mandatory in North Carolina For Part-Time Employees?

All employers who have three or more employees, part-time or full-time, must carry workers’ comp coverage. Unless they fall into one of the above exceptions, part-time employees must also have workers’ comp insurance in NC. 

Is Workers’ Comp Insurance Required in NC?

According to the North Carolina Workers’ Compensation Act, all businesses that employ three or more employees must carry workers’ compensation insurance, including corporations, limited liability companies (LLCs), and sole proprietorships. 

How Long Does Workers’ Comp Last in NC?

According to North Carolina law, the statute of limitations for workers’ compensation claims is two years from the date of injury. Remember that reporting the injury to your employer is not the same as filing a workman’s comp in NC claim. 

If you fail to submit your application for benefits before the statute of limitations ends, your claim will be barred because of North Carolina state law. 

Read more: You can find specific information on workers’ compensation insurance for trucking companies. 

How Do I File For Workers’ Compensation in NC?

Formally, you can file a claim for workers’ comp insurance in NC by filing Form 18. An injured employee should file a Form 18, also known as Notice of Accident to Employer and Claim of Employees, Representative, or Dependent for NC Workers’ Compensation Benefits, with the North Carolina Industrial Commission by providing a copy of the form to their employer. 

A Form 18 is usually filed within 30 days of the accident. 

Do You Need Workers’ Compensation in North Carolina If You Are Self-Employed?

Sole proprietors in NC who have no employees, members of LLCs, and partners are not required to have workers’ compensation insurance as they are not counted as employees. 

However, it’s always a good idea to have workers’ comp insurance because health insurance providers can deny claims for work-related injuries. Workers’ compensation insurance is also useful because it can supply part of the wages employees would miss out on while recovering from the injury. 

Furthermore, independent contractors are not required to have workers’ comp insurance in NC. It is important to note that North Carolina law has specific criteria for determining if someone is an independent contractor. 

What Are the Penalties For Not Having Workers’ Comp in North Carolina?

If you fail to comply with NC workers’ compensation law, you could face strict penalties, including fines and possible criminal prosecution. 

One of the penalties the North Carolina Industrial Commission imposes is a fine of one dollar per employee per day for failing to carry insurance. 

The penalty carries a $50 per day minimum and a $100 per day maximum, no matter how many employees the employer has. Furthermore, if the business owner “willfully” fails to secure coverage, they could be charged with a felony. And if the failure is neglectful, it could be ruled a misdemeanor. 

Finally, in case of an injury, the employer is responsible for the medical treatment costs even if they don’t have workers’ compensation insurance. If there is no coverage, the employee can sue the employer for damages, which always costs more than a settlement. 

How Do I Get Workers’ Compensation Insurance in NC?

The first step is to request coverage from an insurance solutions provider. Typically, you need to answer a few questions regarding your business, payroll, and employees. 

You will need to provide the following information as part of the workers’ compensation in NC requirements:

  • Number of employees in each class code
  • Total payroll for all employees
  • Federal ID number
  • Copy of your workers’ comp insurance in case you had a claim in the past few years

The second step is to review the quote you receive from the insurance carrier. 

The third step is to purchase the policy. In many cases, policies can be purchased online.

Are you still confused about workers’ compensation insurance in NC, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free! 

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