If you are a business owner, there are many things you have to juggle in a day’s time. A typical day may be filled with meeting deadlines, organizing job duties for your staff, or making appointments with potential clients, all of which are important. But do you have the right type of insurance to protect yourself and your employees should an injury or illness occur related to the job? Read this TODAY to find out about N.C. workers comp insurance.
Is Workers Compensation Mandated by Law?
North Carolina workers compensation is a type of business insurance that provides protection for you and your employees for injuries and a percentage of wage replacement if an injury/illness occurs in the scope of business. If you are a sole business owner with 3 employees (inclusive of yourself), you are required by law to have workers comp coverage, regardless of whether your employees are full-time, part-time, or just seasonal.
If your business is incorporated, the law is still the same. Once there are 3 employees, including yourself, it is mandated that you carry workers compensation coverage for everyone.
Does the Size of My N.C. Business Affect the Cost of Workers Comp Coverage?
The cost of workers comp coverage depends directly upon your classification of employment. There are four markets of coverage available in North Carolina, one of which will encompass your type of business. Depending on your specific type of business classification, there are rates applied on a percentage basis. It is best to contact either the N.C. Department of Insurance at 800-546-5664, N.C. Rate Bureau at 919-582-1056 or your local N.C. independent agent to receive information on these rates.
Can Any N.C. Insurance Agent Write Workers Comp Coverage?
You need to understand that the North Carolina agent that you typically work with MAY NOT be licensed to write workers compensation insurance. If your N.C. independent agent does not write this type of insurance, there are many other agents that do and your agent can direct you to other N.C. independent agents licensed to write/offer workers compensation insurance. Since the N.C. law in most situations mandates workers comp insurance, you WILL be penalized if you are not in compliance. The penalty amount may range anywhere from $50.00 to $100.00 for each day you don’t have insurance, until the day you are properly covered.
It is important to be aware of the North Carolina rules, regulations, and requirements regarding your business and workers compensation insurance. Contact us TODAY at 866-869-3335 to answer any and all of your questions so that you, your business, and your employees will be properly protected.
Part II of this article will deal with information on how workers compensation is handled if you are a general contractor or subcontractor.