NC State Mandated Insurances for Small Business Owners

NC Mandated Insurances for Small Business Owners

Small Business Owners Need Business Insurance

NC State Mandated Insurances for Small Business Owners

Most small business owners need business insurance in some form or another including NC state mandated business insurances. Insurance protection is essential in reducing risk and protecting business assets that you have worked hard to accumulate. In many cases, the personal assets of business owners could also be at risk. In addition, most banks need insurance as a condition of a loan to your small business.

Business insurance can help pay the costs of property damage, lawsuits from accidents, lost business income, workers’ compensation claims, natural disasters, theft, professional errors, and more. Small business owners often buy multiple coverages and combine several in one policy to help protect against the specific risks unique to their business. Business insurance serves to protect the business, business owner, and sometimes employees.

Often, small business owners lack the expertise to determine their insurance needs. Advice from professionals in accounting, insurance, banking, and law will help you make proper insurance decisions to decrease your risks and decide on your best protection options.

This is the first in a series of blog posts covering Small Business Insurance and covers NC State Mandated Insurances for Small Business Owners. The most common NC state mandated business insurances are Unemployment Insurance and Worker’s Compensation Insurance. 

NC State Mandated Business Insurance – Unemployment Insurance

Most small businesses in North Carolina must follow federal and state unemployment insurance laws and pay the related taxes. Unemployment (UI) tax is a business tax on a small business payroll paid by the employer. This tax allows the NC Department of Commerce’s Division of Employment Security to pay unemployment benefits to the qualified unemployed workers.

The federal-state unemployment insurance system (UI) provides temporary income support to workers who have lost their jobs through no fault of their own, by replacing part of their wages while they search for employment.

To be eligible for this benefit program in North Carolina, workers must a resident, unemployed, and have earned qualifying minimum wage amounts in NC. Furthermore, workers must actively seek work each week as they are collecting benefits.

For more information on Unemployment Insurance click here and for Unemployment Insurance FAQs click here.

NC State Mandated Business Insurance – Worker’s Compensation Insurance

What is Worker’s Compensation Insurance?

Workers’ compensation insurance, frequently referred to as workman’s comp insurance, is a state-mandated insurance program that provides medical, disability, rehabilitation, and survivor benefits to employees injured or killed due to work-related injuries or illnesses.

Who Administer Worker’s Compensation Insurance in North Carolina?

The North Carolina Industrial Commission was created to oversee and administer the North Carolina Workers’ Compensation Act. The Industrial Commission also assists both employees and employers with questions or concerns about workers’ compensation. For more information about the North Carolina Industrial Commission – click here.

Which Small Businesses must have Worker’s Compensation Insurance in North Carolina?

The North Carolina Workers’ Compensation Act requires any small business that employs three or more employees, whether full- or part-time, to have workers’ compensation insurance. Alternatively, they need to qualify as a self-insured employer for paying workers’ compensation benefits to their employees. This includes small businesses operating as corporations, sole proprietorships, limited liability companies, and partnerships.

It is a good idea to consider workman’s comp insurance if you are self-employed or have a business that is not required to carry it; even if just for yourself. Health insurance providers can deny claims for work-related injuries, which is one of the reasons why you may choose to carry workers’ compensation coverage.

What are the Workers’ Compensation Benefits in North Carolina?

Workers’ Compensation Benefits in North Carolina help workers that are injured or get sick on the job to pay medical bills and replace lost wages. It also covers income lost when disabled workers are unable to return to work on a temporary or permanent basis. Death benefits may also be available to family members of a worker who has died because of a work-related injury or illness.

How to Get Workers’ Compensation Benefits in North Carolina and what does it Cost?

A small business owner in North Carolina has the option to buy workers’ compensation insurance from the private insurance carrier they choose. Private workers’ compensation insurance companies set their own prices and can accept or reject businesses. The rates differ between workers’ comp insurance providers, and it is wise to shop around.

The cost of workers’ compensation in North Carolina typically depends on:

  • Total annual payroll,
  • Industry,
  • Type of work done by employees,
  • Years of operation, and
  • Claims history.

Small business owners can also use an experienced broker or agent to help them choose the workers’ compensation insurance that is right for their business?

The Hartford is one of the prominent workers’ compensation insurance providers for small businesses. Click here to find out more about Workers’ Compensation in NC and get a quote from The Hartford.  Other workers’ compensation insurance providers include Berkshire HathawayLiberty Mutual, and Progressive.

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