If you plan on starting a business in North Carolina, there are a lot of rules and regulations to consider before beginning. Employees are your number one source of success, serving as your eyes, ears and face of the business. This means that you must do what you can to protect the key employees of your business in case of an accident.
In North Carolina, businesses must offer workers compensation if they employee three or more workers. As with most regulations, there are certain exceptions.
North Carolina Workers Compensation Exceptions
Businesses with less than three employees are not required to offer workers compensation. Other possible exclusions include:
Some of these (corporate officers, LLC employees, etc.) may choose whether or not to be covered under workers compensation. LLC employees, partners and sole proprietors will not count as employees unless they’re covered under this insurance, but corporate officers are counted whether they’re covered or not.
Another exception is agricultural businesses, which are not required to have workers compensation unless they employ at least ten agricultural employees that are not seasonal.
How Much is Workers Compensation in North Carolina?
Workers compensation is based primarily on payroll. In North Carolina, most employees pay around $1.06 for every $100 of payroll. In North Carolina, the market can affect this price, as the state has a competitive rating system. This can also depend on the business’ location, industry and policy coverage limits.
Do You Really Need Workers Compensation in North Carolina?
If you aren’t required to carry workers compensation, you may be tempted not to carry it at all. While this can save you money on monthly premiums, it also adds a lot of risk to your business. Say an employee is grabbing boxes from a high shelf. They fall off the ladder, tearing their ACL and suffering a fractured wrist. If your business doesn’t offer workers compensation, this employee can sue the business for their medical expenses. Medical expenses can add up quickly, especially when including emergency services (such as an ambulance), surgery and physical therapy.
Workers compensation is crucial for keeping your employees safe in case of a workplace injury and it can also protect your business in case of an expensive lawsuit. Even a single claim can cost millions of dollars that could damage your business’ income and reputation, so make sure you have the right workers compensation policy for your business.