Who is Required to Carry Workers Comp Insurance?

Workers compensation is an important type of insurance for businesses of all sizes because it protects the business in the event that an employee suffers an injury while on the job. The workers comp insurance pays the injured employee for a predetermined length of time or until they are cleared to return to work.

But, not all employers carry this insurance. For some, this can be risky while for others, the policy may not even be necessary. Here, our workers compensation attorney in Shallotte NC explains which employers are required to carry workers comp insurance.

Decoding the North Carolina Workers Compensation Act

In North Carolina, the Workers Compensation Act requires all businesses with three or more employees, including those operating as corporations, sole proprietorships, limited liability companies, and partnerships obtain workers compensation insurance or qualify as self-insured employers for purposes of paying workers compensation benefits to their employees. Any businesses with at least one employee whose work involves the presence of radiation are also required to carry workers comp insurance.

The only exceptions to this requirement include:

  • Employees of certain railroads
  • Casual employees (individuals who do not perform "work pertaining to the regular course of defendant’s business")
  • Domestic servants directly employed by the household
  • Farm laborers when fewer than 10 full-time, non-seasonal farm laborers are regularly employed by the same employer
  • Federal government employees in North Carolina
  • 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

Corporate officers can choose to be excluded from workers comp coverage but they are still counted when determining how many employees the company has. Individuals who are classified as sole proprietors, members of LLCs, and/or partners may not be automatically counted as employees.

Companies that subcontract work to subcontractors that do not have workers compensation insurance may be liable for any injuries sustained by the subcontractor's employees, even if the company is not required to carry the insurance under the Workers Compensation Act.

What Happens to Corporations That Choose Not to Carry Workers Comp Insurance?

If a company falls under the requirements outlined in the North Carolina Workers Compensation Act and it fails to carry the insurance, then it can face several stiff penalties. These companies, when caught, face financial penalties, misdemeanor and felony charges, and even imprisonment.

Contact Bain & Rodzik's Workers Compensation Attorney in Shallotte NC for Help

If you suffered an injury on the job and your employer is not handling your case with the attention it demands, contact Bain & Rodzik's workers compensation attorney in Shallotte NC as soon as possible. We can help you get the compensation you deserve.

Call the Law Firm of Bain & Rodzik today at 910-762-1199 to schedule a free initial consultation. With Bain & Rodzik, you don't pay unless we win your case!