North Carolina workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
North Carolina
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
North Carolina
's workers' comp laws?
Navigating the complexities of workers' compensation in North Carolina can be daunting for employees and employers.
Coverage ensures that workers receive medical treatment and compensation for lost wages, helping them navigate the challenging period following a workplace accident.
Understanding how this system works, who is covered, and what benefits are available is crucial for both employees and employers in the Tar Heel State.
Let’s deep dive into the intricacies of North Carolina's workers' comp, offering insights, tips and guidance to help you make informed decisions and benefit from this vital protection.
What is workers' compensation?
North Carolina workers' compensation is a state-mandated insurance program for all employers with three or more employees. Coverage provides benefits such as medical care and lost wages for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of medical treatment for an employee’s work-related injury or illness could become the responsibility of your business.
North Carolina workers' compensation rules and laws
The North Carolina Industrial Commission administers the workers’ comp law in the state.
Passed in 1929, the North Carolina Workers’ Compensation Act requires employers with three or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
In North Carolina, workers' compensation cases are "no-fault," which means that the amount a claimant receives will not increase or decrease regardless of who was at fault.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
North Carolina
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
North Carolina workers’ comp exemptions include:
- “Casual” employees, who do not participate in regular business or trade. Casual employees don’t work regular hours and can leave the job without notice.
- Domestic or “household” employees.
- Farm workers when the farm employs fewer than ten full-time employees.
- Federal government employees.
- Railroad employees.
- Certain sawmill and logging employers.
- Corporate officers who are excluded from coverage. However, they’re still counted as an employee when determining if a business has three or more workers that are required for workers’ comp coverage.
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Benefits provided
Workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
North Carolina workers’ comp benefits include:
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Death benefits
North Carolina workers’ compensation rates
An employee’s workers’ compensation lost wage benefit is 66% of their average weekly wage.
As of 2023, the maximum North Carolina workers’ comp weekly benefit is $1,254.
How much does workers’ comp cost in
North Carolina
?
How do you file a workers’ compensation claim in
North Carolina
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer and North Carolina Industrial Commission
Injured workers must immediately file a Form 18 Notice of Accident with the North Carolina Industrial Commission and send a copy to the employer.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Receive benefits
If an employer’s insurance provider accepts the claim, the worker may begin receiving benefits to cover medical expenses and lost wages.
Step 4: Return to work/permanent disability benefits
Following their recovery, the worker is to resume work safely. If a work injury left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Choosing a healthcare provider
In North Carolina, injured workers are to seek treatment from employer-selected doctors.
There are exceptions, though. In emergencies, an employee can go to the nearest emergency room. And when an injured worker’s care is inadequate, employees can contest their employer’s selection.
Compensation for missed work
Wage loss benefits for the first seven missed days of work due to an injury are only provided if the employee’s disability continues for more than 21 days.
No compensation is due for the first seven (7) days of lost time unless the disability exceeds 21 days. Therefore, the first check will not include payment for days 1-7. Payment for those days will be made should the disability continue beyond 21 days.
Resolving disputes
Injured workers who disagree with their claim outcome can request North Carolina’s Industrial Commission Mediation Section to hold an appeal hearing on a disputed claim.
How to get workers' compensation
Insurance requirements for employers
Unless exempt, employers in North Carolina must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.