Workers Compensation Insurance In Durham And Raleigh, NC
Protection Against Workplace Injuries
North Carolina's small businesses employ more than 1.5 million people, but no matter how big or small your business might be, you must maintain a secure working environment. One benefit you'll likely have to offer employees is workers compensation insurance. This is critical coverage that protects employee livelihoods following on-the-job injuries or illnesses. Under North Carolina law, most businesses must buy a workers compensation policy.
All About Insurance understands how essential workers compensation insurance is for both business and employee security. We'll help you optimize your benefits so that you can rely on your plan, rather than business income, to compensate qualifying employees for their losses. If you are ready to get your policy, then call us at (919) 321-2886 or request your quote online now.
Common Workers Compensation Insurance Questions
Under a variety of state and federal workers compensation laws, employees have protection from costs arising from injuries or illnesses they sustain on the job. Workers compensation insurance can help the injured party pay medical bills or receive income support as they recover from the accident. The policy will also free the employer from having to pay for the injuries out of their own pockets. Therefore, neither a business nor its employees will suffer undue losses just because an injury occurred.
Overall, the objective of workers compensation coverage is to ease the burden on employees and their families when someone gets hurt at work. It creates a convenient way for employees to receive the assistance they need for injuries. Some policies even make accommodations for survivor benefits if the injured person dies as a result of the workplace accident.
Coverage can also protect the business from undue stress related to someone getting hurt while working for them. When an employee files for workers compensation, they often surrender the right to sue the business over the injury. Therefore, the business can free itself from certain legal liabilities and reduce the risk of unexpected injury lawsuits.
Under North Carolina's Workers Compensation Act, most businesses that employ three or more people to purchase workers compensation insurance. These include:
- Sole Proprietorships
- Limited Liability Companies (LLCs)
There are various other stipulations in the law that might determine a business' need for coverage:
Businesses with one or more employees who face radiation exposure must buy coverage.
Partners, sole proprietors or executives sometimes don’t count as employees and don’t contribute to a coverage requirement.
Companies that employ contractors or sub-contractors are not exempt from workers compensation requirements.
The only parties that are exempt from the state's workers compensation rules are:
- Certain railroads and their employees
- Casual employees (i.e., persons whose employment is both casual and not in the course of the trade, business, profession or occupation of the employer)
- Domestic employees in a household
- Farm laborers (when fewer than 10 full-time, non-seasonal farm laborers are regularly employed by the same employer)
- Federal government employees
- Sellers of agricultural products for the producers thereof on commission or for other compensation, paid by the producers, provided the product is prepared for sale by the producer.
Business owners must buy a workers compensation policy that meets any coverage requirements for which they qualify. North Carolina institutes various penalties for businesses that are required to buy workers compensation insurance but fail to do so. These can range from financial fines to imprisonment. Your All About Insurance agent can help you determine your coverage requirements, so that you'll always have the appropriate coverage.
Under standard workers compensation coverage, you won't have to choose a specific coverage limit. Policies will calculate payouts based on a percentage of the employee's income and other factors.
However, many workers compensation policies provide additional coverage called employer's liability coverage. Coverage kicks in if the employee does not choose to take workers compensation and instead sues the business. Many states institute coverage requirements for this coverage. In North Carolina, policies must include at least $100,000 in coverage for injury claims and $500,000 for illness claims.
The policyholder is not the party responsible for calculating how much workers compensation they owe an employee. Once the claim occurs, the insurer works with the North Carolina Workers Compensation board to ensure that the employee receives the settlement to which they are entitled. The insurer will usually send the money directly to the employee.
The average small business pays around $2,000 - $3,000 annually for workers compensation insurance. However, depending on the size of the business, the structure of your coverage and other factors, you might have to pay more. Your agent will gladly work with you to compare the policies of various insurers to find the one that offers you the best affordability.