If you’re a North Carolina employer looking to protect both your business and your team in 2026, 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 under the North Carolina Industrial Commission (NCIC). Official NCIC employer guidance.
Workers’ compensation insurance (sometimes called 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, while also helping employers avoid state enforcement actions tied to failing to maintain required coverage. NCIC overview and employer resources.
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 or qualify as an approved self-insured employer. Official NCIC employer requirement page.
However, there are exceptions. According to the NCIC, the following categories may be exempt:
Employees of certain railroads
Casual employees (work is both casual and not in the course of the employer’s trade/business)
Domestic servants directly employed by a household
Farm laborers when fewer than 10 full-time, non-seasonal farm laborers are regularly employed by the same employer
Federal government employees working in North Carolina
Sellers of agricultural products who sell on commission (or other compensation paid by the producer) under the NCIC’s described conditions
Important coverage trigger: businesses in which one or more employees are employed in activities involving the use or presence of radiation are required to have workers’ compensation coverage.
Corporate officers: corporate officers may elect to be excluded from coverage, but are still counted when determining whether a business has three (3) or more employees.
Employers can secure coverage in several ways:
Private insurance market: most businesses purchase a policy from private carriers.
Self-insurance: businesses that qualify can apply to self-insure. The North Carolina Department of Insurance provides official self-insurance licensing information and application requirements here.
Assigned risk pool: for businesses that cannot obtain insurance on the open market, the North Carolina Workers’ Compensation Insurance Plan (assigned risk) is administered by the North Carolina Rate Bureau (NCRB). Assigned risk overview.
Failing to carry required workers’ comp coverage can lead to civil penalties, criminal charges, and direct liability for benefits owed to injured employees.
Civil penalty: North Carolina law authorizes a penalty of $1 per employee per day, with a minimum of $20 per day and a maximum of $100 per day, for each day of noncompliance until it ends. Official statute (G.S. 97-94).
Criminal exposure: under the same statute, an employer who neglects to secure coverage may be guilty of a Class 1 misdemeanor, and an employer who willfully fails to secure coverage may be guilty of a Class H felony.
Employee claim timing: Form 18 (claim form) states it must be filed with the NCIC within two (2) years of the date of injury/occupational disease or the claim may be barred. Official Form 18 PDF.
Employee notice: the Form 18 instructions state notice should be given to the employer immediately after the accident or as soon as practicable and within 30 days. (Form 18 can also serve as written notice.) Official Form 18 PDF: https://www.ic.nc.gov/forms/form18.pdf
Employee claim form: employees should complete Form 18 (Notice of Accident to Employer and Claim of Employee) and file it with the NCIC within two (2) years. Official Form 18 PDF.
Employer responsibilities (when a worker is injured):
The employer must report the injury to its carrier/claims administrator immediately when an injury/occupational disease occurs (or is alleged) and medical attention is needed or sought.
If the injury/alleged injury causes the employee to be absent from work for more than one day, or the employee’s medical expenses are greater than $4,000, the employer (or carrier) must file Form 19 with the NCIC within five (5) days of learning of the injury/allegation.
If a Form 19 is filed, the employer/carrier must provide the employee a copy of Form 19 and a blank Form 18.
Official Form 19 PDF (includes the “file within 5 days” and “provide a blank Form 18” instructions).
Complete forms library (includes Form 17 posting notice, Form 18, Form 19, and others).
Having a workers’ compensation policy isn’t just required for most employers with three (3) or more employees, it’s smart. It protects your business and provides peace of mind for your employees. If an incident occurs, employees have a defined path to benefits, and employers can avoid the serious legal and financial consequences tied to noncompliance. Official employer requirement guidance.
If you have questions about obtaining coverage, the team at Beyond is here to help.
