This Month in Lake Norman Woman’s March Magazine issue, Donna talks about What Worker’s Compensation is, the requirements under NC law, and the dangers of not having this type of policy for your business.
Worker’s Compensation Insurance: Worker’s Compensation Insurance provides benefits for employees who obtain occupational diseases or workplace injuries by way of medical and rehabilitation payment for medical expenses and replacement wages while they recover.
Is it required? If you are a business owner, you may be wondering if your business needs to carry Worker’s Compensation coverage. Whether you are a sole proprietor, a Limited Liability Company, corporation, or partnership, under the North Carolina Workers’ Compensation Act, you are required to obtain Worker’s Compensation insurance if you have three or more employees that are not owners. In other words – it’s Law! There are some situations where members may be excluded. Sole proprietors, members of LLCs, and partners are not automatically counted as employees. Executive officers of corporations are automatically included, but may elect to be excluded from coverage.
Dangers to Not Having Worker’s Compensation:
If you are a business owner, don’t let this area of business make the cut when budgeting or cutting business costs. If you fail to carry Worker’s Compensation insurance, you may face the following consequences:
- face stiff financial and legal penalties
- could be charged with a misdemeanor or even a felony and face jail time.
Be in the know: The state is cracking down on uninsured employers and the seriousness of enforcing Worker’s Compensation laws. Worker’s Compensation rates will also be increasing toward the end of 2021. Now is the best time to get coverage, so don’t wait!