Almost 1 million small businesses call North Carolina home. Those companies account for 99% of the businesses within the state and employ over 1.7 million people. The state’s workers’ compensation laws play an important role in keeping those employees safe while also protecting businesses.
• Sole proprietors with no employees
• members of LLCs,
Like most other states, North Carolina does require businesses to carry workers’ compensation insurance. Companies with three or more employees must carry this coverage, including part-time employees unless they fall into one of several exemption categories.
It’s important to note that the state does not count sole proprietors with no employees, members of LLCs, or partners as employees, and these people are not required to have workers’ compensation insurance. A corporation’s officers can choose to be excluded or to have coverage, but still count as employees either way. The same rule applies to nonprofit directors and executive officers.
If you’re an independent contractor, you’re not required to have coverage. However, the state’s laws regarding independent contractors are somewhat murky, so make sure you know you qualify before deciding not to purchase workers’ compensation insurance in North Carolina.
Self-employed individuals do not have to have workers’ compensation insurance if they fall into one of the categories discussed above. However, it’s always a good idea to purchase coverage, even if you’re self-employed.
North Carolina’s workers’ compensation exemption requirements go beyond sole proprietors and independent contractors and include the following:
Struggling with high workers’ compensation insurance costs? You’re not alone. It’s a major factor for many business owners and decision-makers in North Carolina.
There’s good news. Many business owners don’t realize that it’s possible to reduce the costs of workers’ comp insurance without sacrificing coverage or putting their businesses in legal danger. Here are a couple of ways you can make coverage more affordable:
The rate you pay for workers’ comp coverage will vary based on payroll size, industry, and state. However, the process is similar in all states.
One of the most important tips for controlling workers’ comp costs is to keep accurate payroll records and tax documents all year long. That helps ensure you get the most money back at the end of the year and that you can avoid paying more money.
When an employee is injured on the job, workers’ compensation insurance comes into play. Note that these injuries can include on-the-job incidents, but also occupational diseases that develop over time. In most cases, the policy will pay two-thirds of the employee’s average weekly earnings until they can return to work.
The full breakdown of what workers’ comp covers in NC is as follows:
Medical care from a covered provider
Disability benefits for employees not able to return to work
Death benefits for spouse/family
Obtaining worker’s comp insurance in North Carolina is as simple as buying a policy from a trusted insurance agent licensed to work in the state. Kickstand Insurance offers affordable coverage for North Carolina employers. While small and medium sized businesses (SMBs) need to purchase from an insurance company, large companies may be able to self-insure.
Workers’ compensation insurance is mandatory for businesses that don’t fall within one of North Carolina’s exemptions. If you fail to purchase coverage, you are in danger of suffering a wide range of penalties, including:
While most states offer some form of workers’ comp death benefits, North Carolina’s are more flexible than some. For instance, under the Pickrell presumption, even deaths from unknown causes and circumstances can mean benefits for an employee’s survivors.
The state also presumes the spouse and any minor children were wholly dependent on the employee’s income, but the benefits can also go to partially dependent individuals, including adult children and next of kin. The state’s weekly death benefit is two-thirds of the employee’s weekly earnings paid for a minimum of 500 weeks or until a minor child turns 18. Burial expenses are also included up to $10,000.
Employees may choose to settle their worker’s compensation case. That offers immediate cash to pay for mounting medical bills and helps avoid a court case, which might delay benefits for a very long time. It also benefits the employer.
In this situation, the employee would sit down with the insurance company and its lawyers, as well as a representative of the employer, to find a solution that benefits everyone. The state allows compromise settlement agreements, Form 26A settlements, and Form 21 settlements.
Like most states, North Carolina has a two-year statute of limitations from the date of the injury. An injured employee must file Form 18 within that time, or their claim will not be processed.
However, employers are also required to immediately report work-related illnesses, injuries, and accidents to their insurance carrier. If the employee’s medical costs are more than $2,000 or they must miss more than one day of work, the employer or the insurance company must file a report with the state’s Industrial Commission no more than five days from the date of the accident/incident.
The report must also be given to the employee, who must also be given a blank report to use to file a claim.
Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!
Why choose Kickstand for your North Caroline workers’ compensation insurance? Our unique process is streamlined and designed to help you get the coverage you need at the best possible rates.
Our expert agents work with you to tailor your coverage and provide guidance throughout the process. We also verify that your employees are classified properly and that you’re not paying for anything you don’t need. It’s all about attention to detail and outstanding customer service.
It takes just 5 minutes to complete our online form and receive a no-obligation quote.