Do I need workers compensation insurance?

Workers' Compensation Insurance Requirements in North Carolina

In North Carolina, whether you need workers' compensation insurance depends on the size and type of your business. Understanding these requirements is crucial for compliance and protecting your employees.

When Workers' Compensation Insurance Is Required

• Employers with three or more employees: You must carry workers' compensation insurance if you have three or more employees, including part-time workers.
• Construction industry: If your business is in construction, you must have workers' compensation insurance regardless of the number of employees.
• Subcontractors: Subcontractors in construction are also required to carry workers' compensation insurance.

Exceptions and Optional Coverage

• Businesses with fewer than three employees: Workers' compensation insurance is generally optional but recommended to protect your business and employees.
• Corporate officers: Officers of a corporation can choose to exclude themselves from coverage by filing the appropriate waiver with the North Carolina Industrial Commission.

Operational Considerations

• Insurance carriers: Purchase workers' compensation insurance through a licensed insurance company or the North Carolina Workers' Compensation Insurance Plan.
• Recordkeeping and reporting: Maintain accurate payroll and employee records to ensure proper coverage and compliance.
• Compliance and penalties: Failing to carry required workers' compensation insurance can result in fines, stop-work orders, and liability for employee injuries.
• Integration with payroll: Automate payroll systems to track covered employees and calculate premiums accurately.

As of 2026, always verify current requirements with the North Carolina Industrial Commission or a trusted insurance provider to ensure compliance.