While most businesses in North Carolina are required to offer workers’ compensation insurance, some confusion remains about who needs this type of coverage. That’s why the insurance agents at MP Davis Insurance Agency urge their clients to be fully informed about the process. Failure to purchase a policy can lead to fines and fees and may even require the employer to pay out of pocket for worker injuries.

Who Needs Insurance

Any employer with three or more workers in North Carolina is required to have workers’ compensation insurance in place. An employee is defined as any person who performs work-related duties on behalf of the business, whether the worker is employed in a full or part-time capacity. Even if you hire independent contractors, you may still be required to purchase insurance. Despite their designation, some arguments can be made that a worker has been improperly classified.

Exceptions to the Rule

Of course, there are exceptions to the above rule. This includes federal government workers, domestic servants, railroad employees, and anyone whose employment is considered casual. Corporate officers may opt out of coverage, but they will still be counted as an employee when determining whether a business has enough workers to mandate coverage.  

Consequences of Not Having Insurance

There are several negative consequences of not having workers’ compensation insurance. Fines are standard in this case, and when penalties are exorbitant, employers may have difficulty paying them. Criminal charges can also occur; in North Carolina, an employer without satisfactory coverage could be faced with a misdemeanor or felony. Depending on the severity of the charges, a jail sentence may also be levied.

In Randleman, NC, workers and employers look to MP Davis Insurance Agency for reliable advice about securing the right insurance policy. Whether you need workers’ compensation insurance or are in search of a policy to cover your home or auto, they can help you find the coverage you need at a price you can live with. Call (336) 498-7606 to find out more about receiving an insurance quote. You can also visit them online to see a complete list of services in the Piedmont Triad Area.