Business insurance coverage protects your business from losses as a result of incidents that might happen during the daily course of your work operations. There are different kinds of business insurance that include legal liability, coverage for property damage, or employee-related risks.

Companies assess their insurance needs in accordance with their potential risks, which may be different depending on the type of surroundings in which the business operates. North Carolina business insurance is governed by the national Department of Insurance (DOI), which also keeps the citizens informed about all things related to your business insurance. 

The principal insurance you need in North Carolina includes workers’ compensation insurance and commercial auto insurance. In addition, it’s recommended that you also take into consideration other types of business insurance policies as well. Especially general liability and professional liability, in order to completely protect your business.

This article guides you through the most important things you need to know about business insurance in North Carolina. So, if you’re operating a business there, and you want to understand the state’s insurance policies and plans, keep on reading.

Workers’ Compensation Insurance In NC

In North Carolina, all the businesses that employ three or more employees need to hold workers’ compensation insurance. Nevertheless, there are several exclusions and circumstances that outweigh this common rule:

  • Agricultural and farm workers – These exclusions relate to businesses in the agricultural trade sector.
  • Domestic workers – Household employees like maids or private chefs may not need to be covered.
  • Work involving radiation – Every business in which radiation is present needs to carry workers’ compensation insurance, regardless of employee count.
  • Federal policies and crossover – If employees are covered under particular national policies, they might not need to be covered. For example, some railroad workers who are covered under federal-level policies but based in North Carolina don’t require workers’ compensation.

Implementing mandatory insurance coverage is handled by the Industrial Commission of North Carolina. The penalties for not having the legally obliged workers’ compensation coverage involve fines for lapses in coverage.

Lapses in coverage may carry criminal charges, which will make you or the person in charge of the insurance personally responsible. If your lapse is considered passively neglectful instead of actively willful, it can be ruled a misdemeanor. If your lapse is considered actively willful, it can be ruled a felony. And finally, If one of your employees is injured while working, you would be accountable for medical procedures and lost wages, even though you don’t have coverage.

Commercial Auto Insurance In NC

Apart from workers’ compensation, the other principal required business insurance is commercial auto insurance. Every vehicle owned by a business in North Carolina has to be covered by commercial auto insurance. It helps with covering injuries and damages originating from job-related car accidents. 

No matter if you have one work truck or few delivery vehicles, the commercial car insurance policy will provide you coverage up to the limit of your policy for: 

  • Costs for claims connected with emergency care;
  • Medical expenses;
  • Property damage;
  • Vehicle damage;
  • Legal fees;
  • Gap coverage on financed and leased vehicles.

When you buy a new policy, you can update it to include non-owned and leased auto insurance. That coverage will provide extra protection when you use hired vehicles or if one of your employees uses a private vehicle for professional purposes. 

General Liability Insurance

Every business should consider having a general liability insurance policy. It provides protection for the daily risks that every business encounters. From customers or third parties injuring themselves on your property to unintentionally damaging somebody’s property, general liability covers numerous liabilities.

For example, if a third party, like a customer, falls on your property, they can sue you. If you set up a sponsored advertisement on social media that offends one of your competitors, they can prosecute you for defamation.

However, that’s where general liability insurance comes into play. It will protect you from the expenses associated with third-party claims of property damage, bodily injury, or even advertising damage. You can also purchase insurance coverage that relates to the services your business offers. It’s also known as professional liability insurance.

Recommended Business Insurance In NC

Besides the federal requirements throughout the states and the specific requirements North Carolina enforces, there are also other types of insurance that every business should carry. Note that it’s wise to consider incorporating both professional liability insurance and general liability insurance.

The type of work you do, who you do it for, where you do it, and a number of other factors may expose you to risks aside from what your standard insurance plans can cover. Therefore, you might also consider having additional insurance plans.

Final Words

To protect your business, you will need to cover all your foundations. It means going above and beyond what’s required by the state of North Carolina, along with the essential liability coverage every business should consider. 

Nowadays, business insurance is revolutionized. Many insurance companies offer custom-tailored insurance policies to fit your business needs most adequately. Consequently, understand the insurance legislations of North Carolina, and purchase the most appropriate business insurance policies afterward.