NC Workers' Compensation Rates: A Guide for Employers

NC Workers' Compensation Rates
Mordechai Kamenetsky
Last Updated: 
January 11, 2024

North Carolina workers' compensation rates vary significantly depending on the industry you are in. To help you understand how these rates can impact your business, we've compiled a list of the most common industries in NC along with the rates of one of our primary partner carriers. We also included sample premiums to help you get a better idea of what a policy would cost.

NC Workers' Compensation Rates
Class Code Description Rates per $100 of payroll Annual Premium
3632 Machine Shop $1.52 $380
3724 Garage Door Installation $2.89 $723
3821 Salvage Yard $3.81 $953
5022 Masonry $5.25 $1,313
5102 Door & Window Installation $4.29 $1,073
5183 Plumbing $2.47 $618
5190 Electrical Wiring $2.57 $643
5221 Concrete Construction $3.00 $750
5348 Tile Installation $3.00 $750
5437 Carpentry Trim $4.15 $1,038
5474 Painting $5.15 $1,288
5478 Flooring $2.71 $678
5537 HVAC Installation & Repair $3.32 $830
5645 Carpentry Noc. Residential Construction $11.92 $2,980
7605 Alarm Installation $1.97 $493
8006 Gas $1.71 $428
8017 Retail Store $1.03 $258
8380 Auto Shop $1.54 $385
8742 Outside Sales Person $0.20 $50
8810 Clerical - NOC $0.09 $23
8832 Doctors Office $0.23 $58
8835 Home Health Care $1.51 $378
8842 Group Homes $1.61 $403
9012 Building Operations By Owner $0.64 $160
9014 Janitorial Cleaning $2.12 $530
9015 Building Operations By Contractor $1.87 $468
9052 Hotel Employees $1.10 $275
9082 Restaurant $0.83 $208
9083 Restaurant Fast Food $0.81 $203
9102 Lawn Care $2.26 $565
9516 Electrical Equipment Service & Repair $1.81 $453

*Premiums are estimated based on a hypothetical $25,000 annual payroll.

You'll notice that industries with higher risks, such as construction, have higher rates due to the increased likelihood of workplace injuries. On the other hand, professional services with lower risks, like clerical work, have lower rates.

Keep in mind that these sample premiums are for illustrative purposes only and based on a set payroll amount. Your actual premium will depend on your specific payroll, your company's claims history, and any applicable taxes, fees, and adjustments.

Who sets the rates for Workers' Compensation in North Carolina?

In North Carolina, workers' compensation rates are set by the North Carolina Industrial Commission (NCIC). Insurance carriers then take these base rates and adjust them according to their underwriting criteria, resulting in the final rates they offer to businesses. Each carrier's rates may vary according to how they assess risk and other factors specific to their policies and clientele.

How do you calculate Workers’ Comp Premiums?

Calculating your workers' compensation insurance premium can be quite straightforward once you have the necessary information. It looks scarier than it is, so take a deep breath and I’ll show you how it works.

Here’s the formula: (Annual Employee Payroll / $100) x Industry Rate = Your Estimated Premium

Workers' Compensation Premium Formula

Let's break down the process using the example of a hotel business with a total annual payroll of $180,000 and an industry rate of $1.10 per $100 of payroll. Here's how you would estimate the premium:

  1. Locate your Industry Rate: First, you would need to find your specific industry rate, which can be found in the above list or provided by an insurance agent. For this example, we're using our partner carrier’s NC hotel industry rate of $1.10.
  1. Divide your total Payroll by 100: Take your total annual payroll and divide it by 100. For a payroll of $180,000, the calculation would be:
    $180,000 ÷ 100 = $1,800
  1. Multiply by your Industry Rate: Next, multiply the result by your industry rate. Continuing with the example:
    $1,800 x $1.10 = $1,980

So, the estimated annual premium for a hotel with a $180,000 payroll at a rate of $1.10 would be $1,980.

Watch this video to learn more about calculating your workers’ comp rate.  

Watch this video to learn more about calculating your workers’ comp rate.  

Keep in mind that this calculation provides a basic estimate. The actual premium may differ due to several factors:

Experience Modification Rate

Experience Modification Rate (ExMod): If your business has a history of few or no claims, you may have a lower ExMod, which could reduce your premium. On the other hand, a higher EMF could increase it.

Safety Discounts

Safety Discounts: Some insurers offer discounts if your business has safety programs in place that meet certain criteria, potentially lowering your premium.


Deductibles: Opting for a deductible on your policy can also affect your premium. A higher deductible typically results in a lower premium.

Payment Plan

Payment Plan: The way you choose to pay your premium (e.g., annually, semi-annually, quarterly) might influence the total cost due to potential administrative fees or discounts for full upfront payment.

To ensure you're calculating your workers' compensation premium accurately and taking advantage of any potential savings, it's best to consult with an insurance agent who can guide you through the process and help you understand all the factors that could impact your premium. 

If you're ready to get a more precise quote tailored to your business, consider using our instant quote tool. It's a fast and efficient way to get an estimate that reflects your specific business needs.

Ready to take control of your Workers' Compensation Insurance?

Navigating the complexities of workers' compensation insurance doesn't have to be a daunting task. With a clear understanding of the factors that affect your rates and a commitment to workplace safety, you can effectively manage your costs. 

Are you looking for a quick way to estimate your potential premiums? Get a quote today and get a step closer to securing the right workers' compensation insurance for your North Carolina business.

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Note: The rates listed provided above have been provided by one of our partner insurance carriers, were are accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in North Carolina at this time. Various factors, such as claim history and business experience can affect the rate as well. Business owners should consult with an insurance agent or the NCCI for accurate and up-to-date rate information.

Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.

Mordechai Kamenetsky

Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.

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