$18,250 – $36,500 in fines, even if there are no workplace injuries – that’s what you could expect if your business is caught without workers’ compensation insurance coverage for a year.
The North Carolina Workers’ Compensation Act requires most businesses with three or more employees to obtain workers’ compensation insurance with few exceptions. While your employees can opt out of coverage, you cannot. Not providing workers’ compensation can be a very expensive mistake.
Workers’ compensation insurance in North Carolina protects employees in case of injury while they’re employed by you. It also protects you as a business owner from lawsuits and expensive problems if your employee becomes ill or injured while on the job. Working with an independent insurance agent allows you to choose the coverage that is best suited for your business. Coverage can include medical expenses, loss of income, the cost of rehabilitation, death benefits, and more.
Of course, you’ve heard of this requirement before. Why should you be concerned about it now? Recently, we have seen a surge in workers’ compensation audits as well as random “inspections” of businesses to see if business owners have purchased the necessary coverage for their employees throughout the area.
Maybe you already have workers’ compensation coverage, and you’re not concerned. Ask yourself one question. Is your coverage good enough to survive an audit? When an auditor comes into your location and begins to look at your workers compensation coverage, they’ll look at your original or most recent premium and compare that to your employee and payroll information to determine if your premiums should go up.
Auditors check the classification codes, rates, and payrolls used to calculate the initial premiums to determine accuracy based on your current employees. They’ll also look at your company information on your website, through other online resources, and anything else to determine if the business information you present to the world is accurate based on your current practices and your original premium. They’ll also look for the certificate of insurance for any of your subcontractors or independent contractors that receive a 1099 each year to make sure those workers shouldn’t be covered by your workers’ compensation premiums.
Does it sound complicated and a little scary? It should. If any information is missing or if the auditor feels that your records don’t reflect the business you’re doing, they could raise your premiums, whether their findings are accurate or not. Without proper documentation, records, and information, you could pay more than you need to for your premiums.
Avoid some of that hassle and feel confident going into an audit by working with our independent insurance agents to purchase your workers’ compensation coverage. Our agents will walk you through all of the coverage options available and help you understand your obligations under the law. You can’t stop an audit or an inspection from happening, but you can breath easier if you know you have the right coverage for your business.
Charlotte Insurance understands workers’ compensation coverage. We have helped countless businesses purchase and maintain the coverage they need without paying any more than necessary. Contact us today so we can make sure you have the right coverage for your business.