North Carolina Workers Compensation-Workmans Compensation

North Carolina Workers Compensation Insurance Rules

North Carolina Workers Compensation

1. Does my North Carolina business need workers compensation insurance?

Yes, Any employer who employs three or more employees, must provide workers' compensation insurance. If you are a Sole Proprietor, Partnership, LLC, estate or trust, you are required to carry workers' compensation insurance once you have three (3) employees. If you are incorporated, including all forms of corporations and those which have non-profit status, you are also required to carry workers' compensation insurance. Everyone is included in the headcount, including corporate officers. Businesses dealing with radiation are required by law to possess coverage when they have one (1) employee. Agricultural operations must carry coverage when there are ten (10) or more regular, non-seasonal employees.

2. In North Carolina who can exempt themselves from Workers Compensation Insurance?

There are no longer any exemptions for workers' compensation insurance in North Carolina, and there has not been since October 1995.

3. Does North Carolina workers compensation law have specific requirements for sub-contractors/contractors and sole proprietors?

General contractors with three (3) or more employees are required to carry workers' compensation insurance. If a general contractor enlists the services of a sub-contractor who has one or two employees, there is liability on the part of the principal contractor for those employees but not that of the subcontractor. The principle contractor may request documentation of workers' compensation coverage from the sub-contractor prior to subletting any contract. If the principal contractor obtains this proper documentation, he will not be held liable to any of the subcontractor's employees for compensation or other benefits.

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act , courtesy of Cornell University.
Click here for: USL&H Web Site - Dept of labor

Read the complete text of the Jones Act here.

North Carolina Workers Compensation