In North Carolina, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and North Carolina's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in North Carolina, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in North Carolina?
Mandatory for any business that regularly employs 3 or more employees (and at 1 employee for radiation-exposure and certain other statutory work).
Can owners and officers be included or excluded in North Carolina?
| Sole proprietor | Not auto-counted as an employee / excluded by default; may elect to include self. |
|---|---|
| Partners | Excluded by default; may elect in. |
| LLC members | Excluded by default; may elect in. |
| Corporate officers | Included by default and counted toward the 3-employee threshold even if they later exclude themselves; may specifically elect out. |
How to make the election in North Carolina
- Our form: CWCO General Inclusion / Exclusion Form — records the election where North Carolina does not publish its own form.
- Official source: North Carolina Industrial Commission — insurance requirements
Payroll counted for an included owner in North Carolina
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 4/1/2025), set by the NCRB.
| Included owner/officer minimum | $1,200 per week |
|---|---|
| Included owner/officer maximum | $2,400 per week |
Executive officer $1,200–$2,400/week; sole proprietors/partners on a $62,900 annual basis.
These amounts update periodically; we confirm the current figure for your policy. Source: NCRB Voluntary Advisory Miscellaneous Values.
North Carolina's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through North Carolina Workers Compensation Insurance Plan (assigned risk), administered by the North Carolina Rate Bureau (NCRB). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
North Carolina business insurance · Workers' compensation coverage · North Carolina Industrial Commission.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in North Carolina?
It depends on your entity and role. Not auto-counted as an employee / excluded by default; may elect to include self. Included by default and counted toward the 3-employee threshold even if they later exclude themselves; may specifically elect out. Employees are always covered.
How do I include or exclude an owner from workers' comp in North Carolina?
The right form, portal, or endorsement depends on your entity type. North Carolina records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in North Carolina?
Executive officer $1,200–$2,400/week; sole proprietors/partners on a $62,900 annual basis. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my North Carolina workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.