Here’s How Workers Compensation In North Carolina Works

Workers compensation is a type of accident insurance for employees in North Carolina. Most businesses are required to provide workers comp insurance in NC for their employees. Workers comp insurance in NC helps ensure that employees who are injured on the job can get the necessary medical care they need to recover and return to work. 

Workers compensation insurance is required in most states, though the laws do vary from state to state. If you aren’t already familiar with your state laws, workers comp insurance in NC can be a little confusing. Here’s what you need to know about workers comp insurance in NC. 

Who is required to carry workers comp insurance in NC?

Most businesses who have 3 or more employees are required to provide workers comp insurance in NC. There are a few exceptions to this rule, such as domestic workers employed in a household. Some railroad and government employees also do not require workers comp insurance NC. Farm workers with fewer than 10 nonseasonal employees are one of the last exceptions, not requiring workers comp insurance in NC. 

Some businesses may elect to self-insure if they can prove they have enough financial capital to cover a potential on the job injury or fatality. Businesses who elect to self-insure must commit to paying for all associated costs of an employee accident out of pocket without any assistance from an insurance company. Unfortunately, this is not cost-effective for most businesses. 

NC a No-Fault State

Workers comp insurance in NC is known as a no-fault system, meaning that injuries and illnesses suffered by employees while on the job are covered regardless of the fault of the accident. This helps ensure that employees get the medical care they need and protects businesses from costly unnecessary lawsuits later on. 

The only exceptions to the no-fault system in North Carolina include accidents that are a direct result of a purposeful act or because of drug use. In exchange for the right to use the workers comp insurance in NC workers must give up the right to file suit against a company down the road. 

Statute of Limitations

Workers comp insurance in NC dictates that illnesses and injuries must be reported within 2 years from the accident. Employees are encouraged to report accidents and illnesses immediately after their occurrence. However, some symptoms do not always manifest immediately. The statute of limitations offers time for all symptoms to become apparent and be reported. 

Workers Comp Insurance in NC

Workers comp insurance in NC was put in place to protect both businesses and employees. Premiums differ among insurers but they each use a unique set of elements to determine a business’s rates. Private insurance companies often use the business industry, number of workers, location, and size of payroll among other things to determine the rates for workers comp insurance in NC. If you’re ready to get a free quote on workers comp insurance in NC, call a local insurance agent familiar with your state laws today. It’s the best way to protect your company’s most valuable asset.