Everything You Need to Know About Workers Compensation Insurance in NC

As an employer in North Carolina, it’s important to understand the benefits and requirements of workers compensation insurance. Not only is it required by law, but it also provides financial protection for both you and your employees in case of workplace injuries or illnesses. In this article, we’ll cover the basics of workers compensation insurance in NC, from how it works to how to obtain coverage.

What is Workers Compensation Insurance?

Workers compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill as a result of their work. In North Carolina, workers compensation insurance is mandated by law for employers with three or more employees, including part-time employees. The purpose of this insurance is to protect both employees and employers by providing benefits to injured workers while limiting the liability of their employers.

Workers compensation insurance typically covers medical expenses related to the workplace injury or illness, including hospitalization, medical treatment, and medication. It also provides income replacement benefits to employees who are unable to work due to their injury or illness. In the event of an employee’s death, workers compensation insurance may also provide benefits to their dependents.

How Does Workers Compensation Insurance Work?

If an employee is injured on the job or becomes ill due to their work, they should report the injury or illness to their employer as soon as possible. The employer is then responsible for reporting the incident to their workers compensation insurance provider. The insurance provider will determine whether the employee’s claim is valid and, if so, provide them with the appropriate benefits.

Most employers are required to purchase workers compensation insurance through a private insurance carrier or through the state’s assigned risk pool. The cost of this insurance is typically based on the employer’s industry and the number of employees they have. Larger employers may also have the option of self-insuring.

What Does Workers Compensation Insurance Cover?

Workers compensation insurance in North Carolina typically covers the following:

It’s important to note that workers compensation insurance typically does not cover injuries or illnesses that result from an employee’s willful misconduct or intoxication.

How to Obtain Workers Compensation Insurance in NC

If you’re an employer in North Carolina, you’re required to provide workers compensation insurance for your employees. To obtain coverage, you can purchase insurance through a private insurance carrier or through the North Carolina Rate Bureau, which facilitates workers compensation insurance for all employers in the state.

Before obtaining workers compensation insurance, you’ll need to provide some basic information about your business, such as the number of employees you have and the type of work they do. You’ll also need to provide information on any workplace hazards or previous workplace injuries or illnesses.

FAQs

Q: Who is Covered by Workers Compensation Insurance in NC?

A: In North Carolina, all employees are covered by workers compensation insurance, including full-time and part-time employees. Independent contractors are typically not covered by workers compensation insurance.

Q: What Should I Do if an Employee is Injured on the Job?

A: If an employee is injured on the job, they should report the injury to their employer as soon as possible. The employer is then responsible for reporting the injury to their workers compensation insurance provider.

Q: How Much Does Workers Compensation Insurance Cost in NC?

A: The cost of workers compensation insurance in North Carolina varies based on the employer’s industry and the number of employees they have. Other factors that may affect the cost include the employer’s safety record and any workplace hazards.

Q: What Happens if an Employer Does Not Provide Workers Compensation Insurance?

A: Employers who fail to provide workers compensation insurance can face fines and other penalties. In some cases, they may even be held financially responsible for their employees’ medical expenses and lost wages.

Q: Can Employees Sue Their Employer for a Workplace Injury?

A: In most cases, employees cannot sue their employer for a workplace injury if workers compensation insurance is in place. However, there are some exceptions to this rule, such as if the employer acted with intentional disregard for employee safety or if the injury was caused by a third party.

Overall, workers compensation insurance is an important protection for employers and employees alike. By understanding the basics of workers compensation insurance in NC, you can ensure that you’re complying with state law and providing your employees with the coverage they need in case of a workplace injury or illness.