Running your own business in and around Matthews, NC often means you must hire employees. Jim Boyce Insurance supports our local entrepreneurs. Which is why we want to educate new business owners about the state’s law about worker’s compensation, so you can feel confident that you meet the law’s requirements and understand if your business is exempt from carrying this type of insurance.

Who Is Required To Carry Worker’s Compensation Insurance In North Carolina?

Any business that employs three or more individuals is required to carry this type of insurance. This includes businesses run as sole proprietorship, limited liability companies, and corporations. Even if you call your employees "independent contractors" you may still be found responsible for such individuals as an employer. Such distinctions are ruled by the Industrial Commission. Subcontractors that do not have their own worker’s compensation insurance could also become your liability. 

Who Is Exempt From Carrying Worker’s Compensation Insurance?

Some exceptions to this law include casual employees, certain farm workers, or household servants. Some railroad employees and those who work for the federal government in the state of North Carolina can be excused from having to carry worker’s compensation. Additionally, the trucking industry has its own special insurance requirements different from what’s expected by other industries.

What Happens If I Fail To Carry Worker’s Compensation Insurance?

Depending on the severity of your failure to comply with this law, you may incur large fines, criminal misdemeanor or felony charges, and possibly face prison time. 

Understanding your insurance responsibilities as an employer can be a confusing process. If you’re a small business owner near Matthews, NC, let Jim Boyce Insurance answer your questions and make sure you have the right business insurance for worker’s comp and beyond!