Running a business in North Carolina comes with legal, financial, and environmental risks. Whether you’re opening a café in Wilmington or managing a contracting crew in Charlotte, securing the right coverage is more than protection—it’s a legal and financial requirement.
This guide breaks down the must-know facts about the insurance North Carolina companies need to stay compliant.
Who Needs This Coverage?
Most businesses in North Carolina are required by law to carry certain types of insurance.
Core North Carolina Commercial Insurance Requirements:
Workers’ Compensation Insurance: Mandatory for any business with three or more employees, including part-time or seasonal staff.
Commercial Auto Insurance: Required for all vehicles titled under the business. As of July 1, 2025, all auto insurance policies (including commercial) must meet new state minimums for both:
- Liability: $50,000 per person / $100,000 per accident for bodily injury and $50,000 for property damage (50/100/50).
- Uninsured/Underinsured Motorist (UM/UIM): $50,000 per person / $100,000 per accident for bodily injury and $50,000 for property damage.
Unemployment Insurance: Required if you pay $1,500 or more in wages in any calendar quarter OR employ one or more workers for 20 or more different weeks during a calendar year.
High-risk businesses may need to seek coverage through the North Carolina Rate Bureau (NCRB).
Required Coverage & Optional Policies
Meeting minimum standards is only the beginning. Most small businesses carry additional coverage to avoid lawsuits or contract issues.
General Liability Insurance: Covers third-party injuries and property damage. If a customer slips in your Asheville boutique, this protects against costly legal claims.
Business Owner’s Policy (BOP): Combines general liability with commercial property insurance. Ideal for small retailers and low-risk professional services.
Professional Liability (E&O): Protects consultants, designers, and tech firms from claims tied to missed deadlines, bad advice, or data errors.
Contractor Insurance: Includes tools and equipment protection (inland marine), subcontractor coverage, and site-specific liability.
Cyber Liability Insurance: Essential for any company storing customer data, especially with the rise of remote work in the Research Triangle.
Industry Risks and Claim Examples
Retail: Slip-and-fall injuries due to wet weather are a leading cause of claims.
Restaurants: Grease fires and foodborne illness claims can result in business closures without tailored endorsements.
Construction: Job site injuries remain one of the most frequent and expensive claims, overseen by the NC Industrial Commission.
E-Commerce & Tech: Cyberattacks lead to data breach claims that can be financially devastating for small businesses.
Discover cost-saving strategies in our guide: Local Business Insurance Solutions to Save You Money.
Average Insurance Costs by Industry
What you pay for insurance in North Carolina depends on factors including:
- Business size and industry type
- Number of employees and their job classifications
- Property location and regional risks
- Claims history and safety protocols
- NCRB classification code
Coastal counties may have higher hurricane risk, which can impact property insurance rates.
Claims Process & State Enforcement
If your business experiences a loss, North Carolina law requires prompt reporting.
For Workplace Injuries: You must file an Employer’s Report of Employee’s Injury (Form 19) with the NC Industrial Commission within 5 days of learning of the incident.
For Other Claims: Report the incident to your insurer promptly, submit all required documentation, and cooperate with investigations.
Penalties for noncompliance include:
- No workers’ comp: Fines of $1 per employee per day (minimum $50, maximum $100 per day).
- No auto coverage: Revocation of license plates and business registration.
- No liability policy: Loss of leases or contracts; owners may be sued personally.
Bottom Line for NC Business Owners
Meeting North Carolina’s insurance requirements is not just about avoiding fines—it’s about protecting your future.
Need help navigating options? Call us at (855) 718-7552
