Table of Contents
- Is Workers’ Compensation insurance required in NC?
- How does Workers’ Comp work in North Carolina?
- How much is Workers’ Comp in North Carolina?
- What if you don’t have Workers’ Compensation in NC?
- Who is exempt from North Carolina Workers’ Compensation laws?
- How NEXT helps North Carolina small business owners
Is Workers’ Compensation insurance required in NC?
All North Carolina businesses with three or more employees must provide workers’ compensation insurance to their workers, according to the North Carolina Industrial Commission.
This requirement applies to all corporations, sole proprietorships, limited liability companies (LLCs) and partnerships operating in the state.
Business owners can comply with the law either by buying workers’ compensation coverage from an insurance company or creating a self-insured workers’ compensation program for their employees.
How does Workers’ Comp work in North Carolina?
Workers’ comp can help your business pay for expenses related to work-related injuries for your employees. You can also be covered if you have owner’s coverage with your policy.
Typically, workers’ compensation insurance in North Carolina includes coverage for:
- Emergency treatment and medical expenses
- Lost wages income benefits
- Retraining if you can no longer do your job
- Permanent injury
- Death benefits and survivor benefits
Workers’ compensation does not cover incidents that are not job-related or when the injured person violates company policy, commits misconduct or uses drugs or alcohol on the job.
Workers’ Comp income benefits in North Carolina
Injured employees can be eligible for weekly compensation equaling two-thirds of their average weekly wages within a prescribed range, according to state law.
Temporary total disability benefits must not exceed 500 weeks from the initial disability date unless the employee establishes a need for further compensation.
Based on North Carolina’s workers’ compensation statute, permanent total disability benefits are possible if an employee meets specific criteria, including:
- Spinal injury resulting in severe paralysis.
- Severe brain or head injuries.
- Second-degree or third-degree burns to one-third or more of their body.
An employee who is found to be permanently and totally disabled can receive lifetime compensation.
Workers’ Comp death benefits in North Carolina
If an employee dies from a workplace injury or disease, employers must make weekly payments equal to 67% of the average weekly wages of the deceased worker at the time of the incident.
Employers must also pay for the employee’s burial expenses up to $10,000.
Workers’ comp death benefits in North Carolina generally go to individuals who depended on the deceased worker’s earnings at the time of their death. State law determines the size of a partially dependent person’s death benefit.
