Does my business need workers' comp in North Carolina?
Workers' compensation pays medical care and part of lost wages when an employee is hurt on the job. In North Carolina, many small businesses are required to carry it sooner than they think.
The general rule: three or more employees
According to the North Carolina Industrial Commission, an employer with three or more employees generally must have workers' compensation coverage (or qualify as self-insured).
Corporate officers count
If your business is a corporation, its executive officers count as employees. The Commission's own example: a corporation with two officers and one employee already has three employees and must provide coverage.
Radiation work: no minimum
If even one employee works in activities that involve the use or presence of radiation, coverage is required no matter how many employees you have.
Contractors: get your subcontractors' certificates
Under N.C. Gen. Stat. § 97-19, a contractor who sublets work without first getting a certificate of workers' compensation insurance from the subcontractor can be held responsible for injuries to that subcontractor's employees, as if they were its own, even if the subcontractor has fewer than three employees. Getting the certificate before the work starts protects you.
What we'll ask for a quote
- What each employee does, so the work is classified correctly
- Estimated annual payroll for each type of work
- Whether you use subcontractors, and whether they carry their own coverage
Learn more on our workers' compensation page.
This guide is general information, not legal advice, and every policy is different. A licensed agent can review your situation and your policy with you. Call 1-888-311-4660 or request a quote.