Workers Compensation Insurance
Workers compensation is a form of insurance offering protection to employees by providing wage replacement and medical benefits to workers injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence.
The North Carolina Workers Compensation Act requires that all businesses that employ three or more employees, including those operating as corporations, sole proprietorships, limited liability companies and partnerships, obtain workers’ compensation insurance or qualify as self-insured employers for purposes of paying workers’ compensation benefits to their employees.
Businesses in which one or more employees are employed in activities which involve the use or presence of radiation are required to have workers’ compensation coverage.
An employer is not relieved of its liability under the Act by calling its employees “independent contractors.” Even if the employer refers to its workers as independent contractors and issues a Form 1099 for tax purposes, the Industrial Commission may still find that the workers were in fact employees based upon its analysis of several factors, including but not limited to the degree of control exercised by the employer over the details of the work.
If you subcontract work to a subcontractor who does not have workers’ compensation insurance, you may be liable for the work-related injuries of the subcontractor’s employees, regardless of the number of employees you or the subcontractor employs
The actual rate determination is accomplished by audit unless audit not required. The annual premium audit sometimes known as the payroll audit determines your company’s actual Workers Compensation insurance premium for the policy period
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