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Are you a small business owner in the Tar Heel State? If so, then it’s probably a good idea to get North Carolina business insurance.
There’s a lot of information online, but some of it can be fairly confusing. Fortunately, at Simply Business, we can give you a soup to nuts overview of business insurance in North Carolina. That’s because we’re a top online business insurance platform and we have a team of insurance experts at the ready.
In this article, we’ll cover most of the ins and outs of general liability insurance, professional liability insurance, workers compensation, and more — all specific to North Carolina.
Are you ready to roll up your sleeves and learn more about your state’s business insurance requirements? Then let’s go!
You may have heard the term, “general liability insurance.” Maybe you’ve even purchased a policy in the past. But how much do you really know about getting this type of insurance in North Carolina? If it’s not a lot, don’t worry. We have the scoop right here.
General liability insurance is coverage that can help protect you and your business from financial harm typically if there’s a:
In fact, general liability insurance can be a very important policy to purchase, especially if you work in construction or any industry where accidents and injuries may occur.
And let’s face it — an accident can happen almost anywhere.
General liability insurance can help cover the costs of some of the most expensive claims that small business owners may face.
For example, consider a reputational harm claim. This one can be pricey, to say the least. It usually happens when someone says their reputation was harmed by your business (as in cases of libel or slander) — and it can cost a business an average of $50,000!
Fortunately, general liability insurance can help protect you if you face this type of claim, or others that GL insurance covers. In most cases, you would just pay up to your deductible, and your policy may be able to cover the rest of the costs.
Here are a few other ways that North Carolina general liability insurance can typically protect your business:
In North Carolina, a general liability insurance policy usually isn’t required for small business owners. But it’s highly recommended.
That said, if you’re a general contractor and getting a license, ask an insurance agent. You may have to secure general liability insurance in order to get your North Carolina contractor license depending on your trade and location.
Do you offer advisory services to clients? Marketing consultants, accountants, financial advisors — that’s you.
Then you probably need to get a professional liability insurance policy as well.
A North Carolina professional liability insurance policy can help protect your business financially if someone accuses you of negligence in your job.
Here’s an example. Let’s say you’re a financial advisor and make an error when managing a client’s investments. As a result, your client loses a lot of money.
Or maybe you offer marketing consulting services and execute a campaign that damages a customer’s brand.
Your North Carolina professional liability insurance can step in to help cover the costs of a lawsuit, up to your policy limit.
If you’re one of the following professionals, it’s typically a good idea to get this type of insurance:
In North Carolina, professional liability insurance isn’t typically required by law. But it’s highly recommended. Mistakes can happen to any business owner, so it’s important to have financial protection, especially if you offer advice or consulting services.
Plus, a customer can accuse you of negligence at any time, even if you’ve done nothing wrong. You’d be surprised at how often small business owners face lawsuits. In fact, 36% to 53% of small businesses face lawsuits each year. If you face a lawsuit, you’ll want professional liability insurance to help cover the cost of a lawyer.
Here’s a policy that is required in North Carolina — workers compensation insurance. If you are a sole proprietor or own a partnership, LLC, estate, or trust, you’re legally required to have workers compensation insurance if you have three or more employees.
If your business is incorporated, you typically need to have coverage when there are three people in the corporation (including the corporate officers).
There are a few exceptions, of course. In North Carolina, agricultural businesses need to carry workers compensation when they have 10 or more regular, nonseasonal workers. It can get confusing, but don’t worry. We’ll talk more about workers compensation insurance later on in this article.
For now, if you have specific questions, you can always contact:
NC Industrial Commission Workers’ Compensation 430 North Salisbury Street Raleigh, NC 27611 800-688-8349
When you think of North Carolina business insurance, you may not think of your car first. But if you use a car, van, truck, or tractor for your business — even if you’re just traveling back and forth to job sites, you are required to have commercial auto insurance.
If you use your personal vehicle for your business, you likely need to get a separate commercial auto insurance policy too. That’s because your personal auto policy won’t necessarily cover the costs of an accident if it happens while you’re on the job.
In North Carolina, here’s how commercial auto insurance typically works:
Once you secure base coverage, whether it’s a general liability policy, professional liability policy, or a combination of the two, you may want to explore getting additional insurance to ensure you’re fully protected.
Your coverage will depend on your building’s construction, contents, equipment, and even your emergency planning procedures.
Business interruption insurance can help you stay afloat when times are tough. It’s a worthwhile protection to ensure that your business doesn’t close permanently.
If you ever face a major claim, you may need excess and umbrella coverage in addition to your general liability insurance.
You can purchase earthquake insurance from most property insurers, but you’ll likely need to buy flood insurance from the National Flood Insurance Program.
Ready to learn more about North Carolina business insurance?
Check out our quote comparison tool to get free business insurance quote options from leading insurers across the nation. Then buy the best one that works for your business — in just 10 minutes or less. If you have questions, call 855-528-0042 and speak with a licensed insurance agent.
As we mentioned, if you have three or more employees, the North Carolina Workers’ Compensation Act (NCWCA) requires you to carry workers compensation insurance. It’s designed to protect your employees and your business too.
If an employee were to sustain an injury on the job, insurance will help pay for their lost wages and medical bills — it’s not on you.
There are a few exceptions to this rule, of course. If your business involves working with radiation, you must carry workers compensation insurance, no matter how many employees work for you.
If you’re a sawmill and logging operator, you don’t need to carry workers compensation insurance if you:
Here’s the last exception to the rule — if you’re in the agricultural business, you don’t need to carry workers compensation insurance unless:
Look, it can get pretty confusing. Fortunately, the North Carolina Industrial Commission has a dedicated help line where you can ask questions. If you’re still unsure if you need to get workers compensation or not, call their help line at 800-688-8349.
Most importantly, you should know what workers compensation covers. In general, most North Carolina workers compensation policies can help pay for the cost of:
There isn’t a one-size-fits-all answer to this question. The cost of North Carolina business insurance can vary greatly, depending on many things like what you do, how many employees you have, and where you work.
Plus, the type of coverage you choose — and how much insurance you purchase — can impact your premium.
But if you’re just looking for a ballpark figure for an essential policy, like general liability insurance, we can help.
On a budget? It’s a good idea to use our online tool to compare a few quote options. Check out policies from a few different insurers and then decide how to best protect your company.
You’ve made it this far, so you’re probably feeling ready to buy your North Carolina business insurance policy. But where to begin?
Fortunately, business insurance is now easier than ever to access. Online platforms, like Simply Business, let you quickly compare policies and put together insurance packages that truly meet the needs of your business.
Ready to start shopping? Here are a few tips for finding a policy, whether it’s general liability, professional liability, or workers compensation insurance:
Want more helpful tips? Head over to our easy guide on how to get business insurance.
Congratulations — if you purchased business insurance in North Carolina, you just made a smart move. Your policy can help protect your business financially under some of the worst circumstances.
We hope this article helped you along the way. Remember to check out Simply U for more great business tips, whether you’re just starting out or growing your business to the next level.
This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.
North Carolina Business Insurance
