If you run a business in North Carolina, workers comp insurance North Carolina isn’t optional—it’s required by law. With strict enforcement from the NC Industrial Commission, employers must follow clear guidelines to protect workers and avoid serious penalties.
This guide explains who must carry coverage, what it includes, how much it costs, and how the North Carolina workers comp claim process works.
WHO NEEDS THIS COVERAGE IN NORTH CAROLINA
Under the NC workers comp coverage requirements, most businesses must provide coverage if they have three or more employees—including part-time or seasonal workers.
Coverage applies to:
- Corporations, partnerships, LLCs, and sole proprietors with 3+ workers
- Workers from day one—there’s no grace period
- Radiation-handling businesses, regardless of employee count
Exemptions include:
- Railroad employees covered by federal law
- Casual laborers not central to the business
- Domestic workers employed directly by households
- Agricultural employers with fewer than 10 full-time, non-seasonal workers
- Agricultural product sellers working on commission for producers only
Importantly, labeling someone an “independent contractor” doesn’t remove your liability. The state may still define them as an employee.
KEY BENEFITS & COVERAGE DETAILS
Workers comp provides protection for both the business and the employee. For employers, it reduces legal risks. For workers, it ensures fast care and stable income during recovery.
Core benefits include:
- Medical Coverage: Doctor visits, surgeries, hospital stays, and rehab—paid with no deductibles or co-pays
- Wage Replacement: Two-thirds of average weekly wage, capped at $1,380/week in 2025
- Disability Benefits: For both partial and total disabilities, short or long term
- Death Benefits: Covers funeral costs and weekly payments to dependents
- Specific Loss Awards: Compensation for permanent injury to limbs or functions based on impairment ratings
- Waiting Period: N.C. Gen. Stat. §97-28, Workers don’t receive wage replacement for the first 7 days unless their disability exceeds 21 days. If out more than 21 days, they receive compensation for all missed days including the initial 7 days.
COMMON CLAIMS, RISKS & REAL SCENARIOS
According to the Bureau of Labor Statistics in 2023, over 68,600 nonfatal injuries were reported across North Carolina. Industry-specific risks show why proper coverage is critical.
North Carolina Construction Workers Compensation
Construction is one of the most dangerous fields in the state. According to the U.S Bureau of Labor Statistics North Carolina’s construction industry has a higher workplace fatality rate than the national average, shown as 11.5 deaths per 100,000 employees in 2022. General contractors may be held liable if subcontractors lack proper insurance.
Manufacturing and Machinery Risks
In factories and plants, chemical burns and machine-related amputations are leading causes of injury. Though rates are dropping, repetitive stress injuries remain common.
Healthcare Industry Hazards
Nurses and aides face back injuries from lifting patients. Needle sticks also create risks for bloodborne illnesses, including recognized North Carolina workplace injury benefits for certain post-COVID conditions.
Agriculture
Tractor rollovers and pesticide exposure lead to serious incidents. Only employers with fewer than 10 full-time, non-seasonal workers may qualify for an exemption.
Transportation
Truck drivers face the most fatal injuries statewide. Delivery drivers and logistics teams also experience a high rate of overexertion and vehicle-related injuries.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
COSTS & WHAT AFFECTS YOUR PREMIUM
Premiums vary by industry, payroll, and safety history.
Basic formula: (Annual Payroll ÷ $100) × Industry Rate = Estimated Premium
For example: A hotel with $180,000 payroll × $1.10 rate = $1,980/year
Other rate facts:
- Clerical jobs: $230 minimum per policy term
- Road construction: Often exceeds $1,500 minimum because of high-risk classification
- Group self-insurance: Available to qualifying businesses with cost-saving potential
You may qualify for up to 25% off standard rates with a clean claims history or participation in approved safety programs.
North Carolina Workers Comp Claim Process
Act fast after an injury—deadlines matter. Missing them can mean losing benefits or facing legal issues.
Step-by-step process:
Employee Notification: The employee must provide written notice of the injury to the employer within 30 days of the accident.
Employer Reporting: The employer must file the “First Report of Injury” (Form 19) with the Industrial Commission within 5 days of learning of the injury.
Medical Evaluation: Conducted by an approved healthcare provider.
Insurance Review: Determines eligibility for wage replacement and medical costs.
Resolution or Appeal: If denied, cases may go before the NC Industrial Commission.
Clear documentation and timely filing are key to avoiding delays or penalties. Missing these critical deadlines can jeopardize benefits and expose employers to compliance violations.
North Carolina Workers Comp Penalties for Noncompliance
Failing to carry workers comp insurance North Carolina requires leads to serious consequences:
- Daily Fines: Ranging from $50 to $100 per day for each day of noncompliance
- Misdemeanor Charges: For willful failure to maintain coverage
- Civil Liability: You could be responsible for full injury costs out-of-pocket
- Stop-Work Orders: Immediate shutdown until compliant
- 3-year statute of limitations for penalty assessment: The employer may not be penalized for non-compliance occurring more than three years prior to the date of the penalty assessment
If you’re unsure whether your current policy meets North Carolina workers comp penalties standards, it’s time to reevaluate.
BOTTOM LINE & WHAT TO DO NEXT
Staying compliant with NC workers comp coverage requirements protects your employees, your business, and your future. Don’t assume you’re covered—get the facts, verify your policy, and act before a workplace injury exposes you to legal or financial damage.
Don’t wait until you’re fined—get covered now.
Call 855-718-7552 to speak with a licensed advisor today.
