Workers’ compensation insurance rates in North Carolina are on par with national average rates.

Every type of job is assigned a base rate for coverage by the NC Department of Insurance. Workers' compensation insurance companies must use these base rates to calculate costs but can raise or lower these base rates up to 25% based on discounts, incentives, and policyholder claims histories.

Let's look at some workers' compensation base rate ranges for a few different kinds of jobs in North Carolina. These rates are for every $100 of employer payroll.

• Landscapers:  $3.88 to $10.60
• Plumbing contractors:  $3.15 to $8.60
• Short haul truckers:  $6.20 to $16.93
• Retail store workers:  $1.30 to $3.55
• Clerical workers:  $0.10 to $0.27
• Restaurant workers:  $0.96 to $2.62

Companies with a good safety record will pay rates on the lower end of these ranges, while those with unusually high numbers of employee injuries will pay rates at the higher end.

Your quoted costs will be based on the number of employees you have, how much they are paid, the types of jobs they do, and your company's history of accidents and workers’ compensation claims.

North Carolina law requires all employers with three or more employees to have workers’ compensation insurance. All employees, including minors and undocumented workers, must be covered. Additionally, any company that works with radiation must purchase workers’ comp insurance regardless of the number of workers.

There are a few exceptions. You do not need to buy coverage for:

• Sole proprietors, partners, corporate officers, or LLC members
• Agricultural workers, unless you have 10 or more non-seasonal workers
• Domestic/household workers
• Casual employees
• Certain railroad employees

In North Carolina, workers' compensation coverage is required immediately upon hiring a new employee. Policies can be purchased through a commercial provider or through the state’s assigned risk pool. Approved businesses may opt to self-insure.

Workers' compensation insurance can protect your business against financial losses and potential lawsuits by ensuring that workers who are injured on the job receive the medical benefits and compensation for lost wages they deserve. 

Workers' compensation insurance in North Carolina provides injured employees with:

• Full coverage for all medical treatment and hospital stays
• Coverage for related expenses like ambulance rides, prescription medication, physical therapy, and supplies like crutches, wheelchairs, and slings
• Mileage reimbursement if an employee must drive further than 20 miles round trip for necessary medical appointments
• Disability pay for employees who must take time off work to recuperate
• Vocational rehabilitation if a worker injury leaves them unable to return to their job
• Funeral or burial costs, and death benefits for the employee's spouse and dependents if a work injury is fatal

While workers’ compensation covers a lot of work-related injuries and illnesses, it has some limitations.

Your workers’ compensation company is likely to deny coverage for:

• Claims for workers who are not official employees of your business
• Employee illnesses or injuries sustained outside of working hours
• Injuries or illnesses that are related to preexisting conditions
• Accidents that occurred while the employee was under the influence of drugs or alcohol
• Injuries sustained while committing a serious crime
• Intentional and/or self-inflicted injuries

Be sure to be aware of what your policy will and will not cover when making a purchase. An independent insurance agent can help you understand your policy's fine print.

A workers' compensation certificate is a document that shows proof of insurance. Other names this document goes by include:

• Certificate of Insurance (COI)
• Insurance certificate
• Certificate of insurance form
• Subcontractor certificate of insurance
• Proof of insurance

Sometimes, clients may request to see this proof before they will hire you to do a job. The workers' compensation insurance certificate includes details like:

• Name and address of the policyholder
• Name and address of the insurer
• Type of insurance policies held by the insured
• Policy number(s)
• Effective dates of coverage

You will be issued this certificate by your insurer when you purchase or renew your workers’ compensation policy. 

Independent insurance agents make finding the right coverage easy by shopping and comparing insurance quotes for you. These agents can clarify the fine print so you know exactly what you’re getting when you buy any type of policy through them.

No business is too small to benefit from working with an independent agent. These agents are free to work with multiple insurance companies as they search for the best workers' compensation coverage at the most competitive price. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

In most cases, workers' compensation benefits received by employees are not taxable on the state or federal level.