Is workers comp required in North Carolina?
North Carolina generally requires coverage for businesses with three or more employees, with stricter rules for some industries. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in North Carolina
Workers comp in North Carolina is a competitive private market. Agents compare carriers that write your class of business, and an assigned-risk option exists for employers that private carriers decline.
Who sets the rules
The North Carolina Industrial Commission oversees workers comp in North Carolina. Classifications and loss costs in North Carolina come from the North Carolina Rate Bureau, an independent rating organization, so codes and rules can differ from NCCI states.
What North Carolina employers should know
- North Carolina contractors that sublet work can be responsible for uninsured subcontractors, so certificates are routinely requested.
- Furniture manufacturing, textiles and construction are long-standing North Carolina classes.
North Carolina facts employers ask about
The North Carolina Industrial Commission administers workers comp and enforces coverage. Most employers with three or more employees must carry it, and employers with even one employee in activities involving radiation exposure must also comply. Sole proprietors and partners are not required to cover themselves but may elect to.
North Carolina contractor rules are stricter than the general threshold suggests. A general contractor that sublets work to an uninsured subcontractor can be treated as the statutory employer and become liable for the subcontractor's injured workers, regardless of how many employees each business has. Collecting certificates before any sub starts work is the practical answer.
Classifications, loss costs and the residual market in North Carolina are handled by the North Carolina Rate Bureau, an independent organization rather than NCCI. Employers that private carriers decline can obtain coverage through the assigned risk pool it administers. The Commission's compliance staff can assess penalties against employers that go without coverage.
Sources: North Carolina Industrial Commission; North Carolina Rate Bureau. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
Insurers in North Carolina price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for North Carolina employers
Contractor workers comp
Workers comp for general contractors and trades like roofing, electrical, plumbing and painting.…
Trucking workers comp
Workers comp for trucking companies, owner-operator fleets and delivery operations: driver…
Restaurant workers comp
Workers comp for restaurants, cafes, bars and caterers. Burns, cuts and slips, tipped payroll,…
North Carolina workers comp FAQ
Is workers comp required in North Carolina?
North Carolina generally requires coverage for businesses with three or more employees, with stricter rules for some industries. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in North Carolina?
The North Carolina Industrial Commission administers the workers compensation system in North Carolina.
Can I buy North Carolina workers comp from a private insurer?
Yes. Private insurers write workers comp in North Carolina, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in North Carolina?
Classifications and loss costs in North Carolina come from the North Carolina Rate Bureau, an independent rating organization, so codes and rules can differ from NCCI states. Insurers in North Carolina price policies from payroll by classification, then apply your claims experience and any credits or debits. Keeping payroll estimates current avoids a large audit adjustment.