Workers' Compensation by state

Workers' compensation requirements in North Carolina

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Does North Carolina require workers' compensation insurance?

Yes. North Carolina requires workers' compensation coverage once a business has three or more employees, under the North Carolina Workers' Compensation Act. North Carolina requires workers' compensation coverage once an employer regularly has three or more employees. Some operations involving specified hazards may be covered at lower counts, and employers below the threshold may elect coverage.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

North Carolina requires workers' compensation coverage once an employer regularly has three or more employees. Some operations involving specified hazards may be covered at lower counts, and employers below the threshold may elect coverage.

Coverage trigger: Three or more employees
If you go without coverage: Failing to carry required coverage can bring civil penalties assessed per day, possible criminal liability, and personal liability for corporate officers.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Employers with fewer than three employees
Certain agricultural employers with fewer than ten full-time workers
Some domestic servants and casual employees

Statutes and sources

North Carolina Workers' Compensation Act

N.C. Gen. Stat. sect. 97-1 et seq.

Regulator: North Carolina Industrial Commission . Last verified 2026-07-29 from the official source .

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