North Carolina requires most employers to carry workers' compensation insurance once they have three or more employees, including part-time workers and family members on payroll. Construction employers are required to carry it with even one employee.
What It Covers
Workers' compensation covers: - Medical costs for employees injured on the job, regardless of fault - A portion of lost wages during recovery - Death benefits to surviving family members if an employee is killed in a work-related incident
How the Premium Is Calculated
The premium is calculated based on your payroll and the class codes assigned to each type of employee role. Higher-risk roles (like roofers or electricians) carry higher class code rates than lower-risk roles (like office staff). Accurate classification is important - misclassification can result in a surprise audit bill.
How It Protects the Employer
Workers' comp also protects the employer. In most cases, an employee who receives workers' comp benefits gives up the right to sue the employer for the injury - which provides meaningful liability protection for the business.
Even if your business is below North Carolina's three-employee threshold, voluntary coverage can protect you from a lawsuit if a worker is injured. The NC Industrial Commission is the state agency that administers workers' compensation claims and employer requirements in North Carolina. Get a workers comp quote for your North Carolina business through IronHaven.
