Who Needs North Carolina Workers’ Compensation Insurance?
With a few special exceptions, any company in NC that has three or more employees on its payroll must carry workers’ compensation insurance (unless the company is qualified as a “self-insured” employer). Even a very small business should consider this insurance as essential as auto insurance or homeowner’s insurance is for an individual. It’s not just about how likely your employees are to suffer an injury on the job; it’s also about complying with state law. As the recent crackdown illustrated, there are heavy fines for a business that is found to be operating without the appropriate level of workers’ comp coverage.
Consequences of Non-Compliance
Consider the following consequences associated with failing to meet North Carolina workers’ compensation rules:
- According to a report by the News & Observer of Raleigh, state officials collected one million dollars from companies that were caught without workers’ compensation insurance.
- Neglecting to purchase workers’ comp insurance is a Class 1 misdemeanor in NC.
- In some cases, failing to protect employees with workers’ comp insurance is treated as a felony.
- Additional consequences can include the closing of the business and even a prison term for the business owners.
Why are these penalties so high? The answer is relatively simple: If an employee is injured on the job and his employer does not have workers’ comp insurance, the state of North Carolina is next in line to cover the employee’s medical bills. These bills routinely run into the thousands of dollars, and prosecuting an employer after an injury has occurred costs even more money in legal fees. It is in the state’s interest to avoid these complications by locating non-compliant employers and penalizing them before one of their workers is hurt.
However daunting the process of choosing workers’ compensation insurance may seem, it is critical for even a small startup company to cover these bases right away. Attempting to skip workers’ comp and “fly under the radar” because your employees work in a relatively safe office is similar to driving without a driver’s license and counting on not having an accident. With the state of North Carolina actively looking for employers who do not hold insurance, your business could face crippling fines and misdemeanor charges…even if none of your workers ever suffer an injury on the job.
Making North Carolina Workers’ Compensation Easy
With the solutions that Complete Employee Services provides, North Carolina workers’ compensation can become a simple, easy fix instead of a complicated and costly process. Our representatives have spent the time and effort becoming intimately familiar with the NC requirements so that you don’t have to. We overview your company, compare it with the state law, determine what your workers’ comp obligations are, and set up an insurance policy that gets you the coverage you need at rates that you can afford. Don’t go another day without this essential coverage; get in touch with us to protect your company as soon as possible.
This discussion does not even touch the topic of workers’ comp claims. Over the course of its lifetime, your company may face fraudulent claims and exaggerations by hurt workers that can threaten to raise your insurance costs unfairly. Without a detailed knowledge of the process, even legitimate claims can drain your resources as you try to resolve the issue on your own. Make sure that you have the experts at Complete Employee Services on your side, ready to handle both legitimate and illegitimate claims.
REFERENCE: Insurance Journal, “North Carolina Cracks Down on Employers Lacking in Workers’ Comp Coverage” (http://www.insurancejournal.com/news/southeast/2016/01/12/394749.htm), accessed 3/10/2016.