Workers’ Compensation in North Carolina

A Worker’s Compensation insurance is a mandatory insurance for all employees in majority of the states of America, including North Carolina. It is a business insurance that provides medical benefits and income lost for workers who suffered work related injuries or diseases and cannot work at a period of time.

In North Carolina, Workers’ Compensation was regulated in 1929 requiring each business that has three employees and up to get Workers’ Compensation coverage.

Workers’ Compensation has become a government mandate in most countries including the United States of America. Formerly, workers that get injured while performing a job-related task had to prove the negligence of their employers to get compensation for the medical care, lost wages, and other restitutions. But over the years of insurance development and economic growth, workers today can now work with ease and without worries in their workplaces as they are covered by their Workers’ Compensation insurance carriers.

Table of Contents
• Employers’ Obligations
• Employers’ Failure to Carry Workers’ Compensation
• SynchronoSure®’s Workers’ Compensation
• Forms Needed to a File Claim

Employers’ Obligations

All business owners in North Carolina that has three employees or more are obliged by the state’s Workers’ Compensation Act to provide insurance coverage for their employees’ injuries by accident or occupational illness. This includes businesses operating as corporations, sole proprietorships, limited liability companies and partnerships, and those involve the use or presence of radiation.

However, there are certain exceptions to this requirement.
• employees of certain railroads
• casual employees like people whose employment is both casual and not in the course of the trade, business, profession or occupation of the employer
• domestic workers hired directly by a family
• farm workers 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

People who are not automatically counted as employees:
• sole proprietors
• members and partners of LLCs
• executive officers, directors, or committee members of a non-profit corporation

Employees may refer to their insurance agents if they are uncertain of their employers’ responsibilities.

Employers’ Failure to Carry Workers’ Compensation

If the employer fails to carry a Workers’ Compensation insurance, he/she might face the following sanctions:

May face difficult financial penalties

The employer will have to pay for lawyers and other legal matters when faced in the hearing for the negligence to carry a workman’ compensation for his/her employees. Aside from that, the employer will be needing to pay for the damages this negligence cause the employees.

As stated by the North Carolina Workers’ Compensation Act, “Any employer required to secure the payment of compensation under this Article who refuses or neglects to secure such compensation shall be punished by a penalty of one dollar ($1.00) for each employee, but not less than twenty dollars ($20.00) nor more than one hundred dollars ($100.00), for each day of such refusal or neglect and until the same ceases.”

May be charged with a misdemeanor

A misdemeanor is defined as a “lesser” criminal offense punishable by a community service, fine or worst imprisonment.

May be charged with a felony

Worse than misdemeanor, a felony is a serious criminal offense punishable by imprisonment not lesser than one year, or it can be a lifetime imprisonment for some extreme cases.

In the long run, the employer can save more if by having a Worker’s Compensation. Not having one will actually make the business vulnerable to lawsuits and severe financial loss. The workers do their part in the business therefore the employers must also do their part in providing liability insurance for them.

SynchronoSure®’s Workers’ Compensation

SynchronoSure® is a state-of-the-art Insurtech Managing General Underwriter (MGU) focused on small sized property and casualty insurance for gig economy, other emerging industries, and small businesses in the U.S. With the combination of artificial intelligence and expertise of our underwriters in decision-making, we bind policies in minutes.

SynchronoSure®’s Workers’ Compensation is a business insurance that pays for the medical care for workers who suffer from on-the-job injuries or illnesses, and covers financial loss such as lost wages when the employee cannot work due to injury or sickness. This product also protects the business’ assets from lawsuits.

Quick information about this product:
• Minimum Policy Premium $1,000
• Maximum unmodified manual premium of $35,000
• Maximum experience modifier of 1.35
• Installment Options of Annual or Full Payment Due at Inception
• Employers Liability with Limits up to $1m/$1m/$1m

We have several payment plans:
• Annual
• 2 Pay (to bind coverage, 20% down + first installment required)
• 4 Pay (to bind coverage, 20% down + first installment required)
• 10 Pay (to bind coverage, 20% down + first installment required)

Our Workers’ Compensation has an Insurance-As-A-Service™ Resources that gives you value-added resource for legal, human resource management, risk management, mental health, ergonomics and loss mitigation services.

Meeting the requirements of state laws, our Workers’ Compensation does not charge Assigned Risk Adjustment Program (ARAP) surcharges that is in North Carolina Assigned Risk Program. We have a broad appetite for small account Workers’ Compensation risks. Check our 1,000+ payroll classifications here.

Forms Needed to a File Claim

The basic forms are as follows:

Form 19Employer’s Report of Employee’s Injury or Occupational Disease to the Industrial Commission
This form is for the employers to file the First Report of Injury (FROI). Employers must submit it within five days of learning of the employee’s accident or occupational illness. All FROI must be completed and submitted electronically through Electronic Data Interchange (EDI). The only exceptions will be when a Form 18 was previously filed and a six-character alphanumeric number has already been assigned, or for an occupational illness in which a Form 18B has already been filed. If one of these are satisfied, the FROI can be mailed into the N.C. Industrial Commission, faxed to the N.C. Industrial Commission at 919-715-0282, or e-mailed to forms@ic.nc.gov.

Form 18Notice of Accident to Employer and Claim of Employee, Representative, or Dependent
Use this form for legal claim of injury on behalf of the employee if filed within two years of the date of accident or occupational illness and gives the required written notice to the employer if a copy is submitted to the employer within 30 days of the incident.

Form 18bClaim by Employee, Representative, or Dependent for Benefits for Lung Disease
Use this form if the employee’s claim is for a lung disease such as asbestosis, silicosis, and byssinosis (G.S. §97-53).

For more details about the North Carolina industrial Commission forms, visit N.C. Industrial Commission Forms.
Skip to content