NORTH CAROLINA'S ONLINE RESOURCE FOR NC WORKERS COMPENSATION INSURANCE

Whether you want to find out about NC Workers Compensation Insurance Coverages, want to find out if you need NC Workers Compensation Insurance for your business, or to simply obtain a NC Workers Compensation Insurance Quote, you’ve come to the right place.

WHAT IS NC WORKERS COMPENSATIONS INSURANCE?

Workers Compensation and Employers Liability is a form of no-fault insurance provided by the employer for the employee.  The employee gives up certain rights to sue in exchange for protection from injuries incurred on the job.  Workers Compensation Laws in North Carolina are governed by the North Carolina Industrial Commission.

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NC WORKERS COMPENSATION INSURANCE - DO I NEED IT?

The answer is YES!  Then again, you are reading an Insurance Web-Site.  The better question would be…”Am I required to carry Workers Compensation Insurance in North Carolina?”  In order to answer that question, we must distinquish between various forms of business entities.

  • Sole Proprietorship, Partnerships, L.L.C.’s, Estates, or Trusts are required by law to carry Workers Compensation Insurance once they have three (3) employees who are regularly employed, in ADDITION to the sole proprietor, partners, formulators of the L.L.C., executor of the estate, and bearer of the trust.  It does not matter if the employees are full time, part time, regular, seasonal, or family members.
  • Corporations are required by law to carry Workers Compensation Insurance once you have a total of three (3) people in the corporation.  Everyone is included in the headcount, including corporate officers.
  • Businesses with radiation are required by law to carry Workers Compensation Insurance when they have one (1) employee.
  • Agricultural Operations must carry Workers Compensation Insurance when there are ten (1) or more regular, non-seasonal employees.
NC WORKERS COMPENSATION INSURANCE - GHOST POLICIES

A “Ghost Policy” is a term used to describe a Workers Compensation Insurance Policy where the company / person purchasing the policy has no employees and chooses to Exclude themselves from Coverage.  This type of policy is common with sub-contractors in the construction industry.  These sub-contractors are typically required by the General Contractor who hires the sub-contractor.

NC WORKERS COMPENSATION INSURANCE - RATE MODIFICATIONS

Rate Modifications are determined by the North Carolina Rate Bureau and can provide a either a discount or a debit to the stated Workers Compensation Rate for a policy.  Rate Modifications are based on the insured’s claims experience.  In order to qualify for a Rate Modification (effective January 1st, 2007) the insured must have a premium of at least $8,000 for the previous policy period.  If more than two years of data is used, an average annual premium of at least $4,000 is required.

NC WORKERS COMPENSATION INSURANCE - HOW ARE PREMIUMS DETERMINED?

Premiums are determined by associating annual payroll figures to the “class codes” present in your business.  Your original estimates of payroll will (more than likely) not be the accurate payroll figures at the end of the policy period.  The insurance carrier will audit your payroll figures and adjust your final premium either up or down depending on the actual payroll figures.

NC WORKERS COMPENSATION INSURANCE - HOW DO I PURCHASE IT?

First, we need to determine what “class code(s)” your business has.  Once we determine the class codes, you will need to assign an annual payroll amount to each class code.

NC WORKERS COMPENSATION INSURANCE QUOTES (BY CITY)