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North Carolina workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a North Carolina employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation insurance, also known as workmen’s compensation, provides essential benefits to employees who suffer a work-related injury or develop an occupational illness. This coverage can help pay for medical costs and replace a portion of lost income during time off.
There are also significant benefits for employers. In many cases, workers’ comp helps protect employers from lawsuits related to on-the-job injuries or illnesses.
Most businesses in North Carolina with three (3) or more employees, including corporations, sole proprietorships, LLCs, and partnerships — are required to carry workers’ compensation insurance.
According to the North Carolina Industrial Commission (NCIC), the following categories may be exempt:
Employees of certain railroads
Casual employees (i.e., those whose work is both casual and not in the course of the employer’s trade or business)
Domestic servants directly employed by a household
Farm laborers when fewer than 10 full-time, non-seasonal workers are employed by the same employer
Federal government employees working in North Carolina
Agricultural product sellers who sell on commission for the producer
Corporate officers may choose to exclude themselves from coverage — but are still counted when determining if a business meets the 3+ employee threshold
Additionally, any business involving the use or presence of radiation must carry coverage.
Employers can secure coverage in several ways:
Private insurance market: Most businesses purchase a policy from private carriers.
Self-insurance: Businesses may apply to self-insure, which requires meeting financial solvency requirements. For more information, contact the North Carolina Department of Insurance at (919) 807-6750.
Assigned risk pool: For businesses that cannot obtain insurance on the open market, the N.C. Rate Bureau manages an assigned risk pool. Contact them at (919) 582-1056.
Failing to carry proper workers’ comp coverage can lead to:
Fines of $50 to $100 per day, depending on the number of employees
Misdemeanor charges for negligence and potential felony charges for willful violations
Personal liability for medical expenses and lost wages
No insurance-paid defense costs if the employee sues
A statute of limitations of two years for workers to file a claim using Form 18
If an incident occurs, the employee must notify the employer immediately, or within 30 days, both verbally and in writing.
They must also complete Form 18 (Notice of Accident to Employer and Claim of Employee).
The employer must:
Notify the insurance carrier or plan administrator
File Form 19 with the NCIC within five days if:
The employee misses more than one day of work
Cumulative medical costs exceed $4,000
Provide a copy of Form 19 and a blank Form 18 to the employee
Having a workers’ compensation policy isn’t just required, it’s smart. It protects your business and provides peace of mind for your employees. Should an incident occur, they’ll have the support they need, and you’ll avoid legal and financial fallout.
If you have questions about obtaining coverage, the team at Beyond is here to help.
