Table of Contents
- Is Workers’ Compensation insurance required in NC?
- How does Workers’ Comp work in North Carolina?
- How much is Workers’ Comp in North Carolina?
- What if you don’t have Workers’ Compensation in NC?
- Who is exempt from North Carolina Workers’ Compensation laws?
- How NEXT helps North Carolina small business owners
Is Workers’ Compensation insurance required in NC?
All North Carolina businesses with three or more employees must provide workers’ compensation insurance to their workers, according to the North Carolina Industrial Commission.
This requirement applies to all corporations, sole proprietorships, limited liability companies (LLCs) and partnerships operating in the state.
Business owners can comply with the law either by buying workers’ compensation coverage from an insurance company or creating a self-insured workers’ compensation program for their employees.
How does Workers’ Comp work in North Carolina?
Workers’ comp can help your business pay for expenses related to work-related injuries for your employees. You can also be covered if you have owner’s coverage with your policy.
Typically, workers’ compensation insurance in North Carolina includes coverage for:
- Emergency treatment and medical expenses
- Lost wages income benefits
- Retraining if you can no longer do your job
- Permanent injury
- Death benefits and survivor benefits
Workers’ compensation does not cover incidents that are not job-related or when the injured person violates company policy, commits misconduct or uses drugs or alcohol on the job.
Workers’ Comp income benefits in North Carolina
Injured employees can be eligible for weekly compensation equaling two-thirds of their average weekly wages within a prescribed range, according to state law.
Temporary total disability benefits must not exceed 500 weeks from the initial disability date unless the employee establishes a need for further compensation.
Based on North Carolina’s workers’ compensation statute, permanent total disability benefits are possible if an employee meets specific criteria, including:
- Spinal injury resulting in severe paralysis.
- Severe brain or head injuries.
- Second-degree or third-degree burns to one-third or more of their body.
An employee who is found to be permanently and totally disabled can receive lifetime compensation.
Workers’ Comp death benefits in North Carolina
If an employee dies from a workplace injury or disease, employers must make weekly payments equal to 67% of the average weekly wages of the deceased worker at the time of the incident.
Employers must also pay for the employee’s burial expenses up to $10,000.
Workers’ comp death benefits in North Carolina generally go to individuals who depended on the deceased worker’s earnings at the time of their death. State law determines the size of a partially dependent person’s death benefit.
How much is Workers’ Comp in North Carolina?
Workers’ compensation costs vary across industries. Factors that influence price include:
- The number of employees and the type of work they do
- Your total payroll
- Your insurance claims history
- The locations where you do business
The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.
What if you don’t have Workers’ Compensation in NC?
The penalties for not carrying workers’ compensation in North Carolina can be severe.
According to the North Carolina Industrial Commission, if you don’t provide your employees with workers’ compensation coverage, consequences can include:
- Substantial financial penalties
- Misdemeanor charges
- Felony charges
- Time in jail
The state’s workers’ compensation statute imposes financial penalties of $1 per employee per day of noncoverage, totalling not less than $50 and not more than $100 per day. This translates into a fine of between $18,250 and $36,500 per year.
Without workers’ compensation protection for employees, your company could be liable for workers’ medical expenses and replacement income if they get ill or injured at work. Dissatisfied employees could also take legal action to recover additional financial compensation.
Who is exempt from North Carolina Workers’ Compensation laws?
Sole proprietors, LLC members and business partners are exempt from workers’ compensation coverage in NC, according to the state.
Corporate officers may opt out of workers’ compensation, but they still count under the rule that any business with more than three employees must carry workers’ comp coverage.
North Carolina state law also exempts employees such as:
- Agricultural workers on farms with less than ten employees
- Employees of certain railroads
- Some sawmill and logging workers
- Domestic workers
How NEXT helps North Carolina small business owners
NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.
We strive to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.
