What Is Workers’ Comp Insurance?
Workers’ compensation insurance (often called workers’ comp) provides benefits to employees who are injured or become ill because of their job. It helps cover medical expenses, lost wages, and rehabilitation costs, while also protecting employers from certain legal claims.
North Carolina Workers’ Comp Requirements
North Carolina requires workers’ compensation coverage for most employers with three or more employees regularly employed in the same business. Corporate officers count toward the three, even though a corporation can choose to exclude an officer from the policy. Sole proprietors, partners, and LLC members are not counted automatically, but they can elect coverage for themselves.
If any employee’s work involves radiation, coverage is required with just one employee. And a contractor who hires a subcontractor without coverage can be held liable for that subcontractor’s injured workers, so always get a certificate of insurance.
Exceptions include:
- Agriculture, unless 10 or more full-time, nonseasonal farm workers are regularly employed
- Domestic workers in private homes
- Casual workers whose job is not part of the employer’s regular business
- Certain small sawmill and logging operators
What Workers’ Comp Covers in NC
While policies can vary by carrier, most workers’ comp insurance includes:
- Medical Expenses: Hospital bills, doctor visits, surgeries, prescriptions, and rehabilitation.
- Lost Wages: Partial income replacement while the employee recovers.
- Disability Benefits: For temporary or permanent disabilities related to a work injury or illness.
- Death Benefits: Support for dependents if a work-related injury or illness results in death.
- Legal Protection: Helps cover legal fees if an injured employee files a lawsuit.
Common Work-Related Injuries in North Carolina
- Slips, trips, and falls
- Back injuries from lifting
- Repetitive motion injuries (e.g., carpal tunnel)
- Machinery or equipment accidents
- Exposure to harmful substances
Penalties for Not Having Workers’ Comp in NC
An employer who is required to carry coverage and doesn’t can face:
- A penalty of $1 per employee for each day without coverage, at least $20 and at most $100 per day, until coverage is in place
- Criminal charges: a Class 1 misdemeanor for neglecting to carry coverage, or a Class H felony if the failure is willful
- Paying an injured employee’s medical bills and lost wages out of pocket, plus potential lawsuits
How Sizemore Insurance Helps NC Businesses
As an independent insurance agency, we:
- Review your business operations to ensure you meet NC legal requirements
- Compare rates from multiple top carriers
- Help you understand your coverage limits and exclusions
- Assist with claims to keep the process smooth for you and your employees
Whether you run a construction crew in Wilmington, a restaurant in Raleigh, or a retail shop in Charlotte, we’ll match you with a policy that meets legal requirements and fits your budget.
Get a Workers’ Comp Quote Today
Protect your employees, and your business, with the right coverage.
Start your quote online or call (910) 791-1011 to connect with a Sizemore Insurance advisor. See also North Carolina Business Insurance.
Sources: NC General Statutes 97-2 (who must carry coverage), 97-19 (uninsured subcontractors), 97-94 (penalties), and the NC Industrial Commission.