Cost Of Workers’ Comp Insurance Drops For North Carolina Businesses
Posted on Nov 30, 2009
According to the Associated Press, there’s good news for North Carolina businesses when it comes to the cost of Workers’ Compensation insurance. A new deal has been struck between North Carolina insurance company regulators and NC insurance providers that will allow all state companies, businesses, and organizations to save approximately 10 percent on workers’ comp insurance costs in the coming year. The rate decrease will take effect in April 2010.
While some companies in North Carolina who buy high-risk workers’ comp insurance, such as construction companies, will not be affected by the decrease in workers’ comp insurance rates, most other businesses will benefit from the agreement between regulators and insurance companies to the tune of $120 million a year. According to State Insurance Department spokeswoman Kristin Milam, the rate decrease is good for businesses and workers. In fact, a friendly workers’ compensation insurance rate could attract outside businesses to North Carolina.
The vast majority of companies and businesses in North Carolina are required by law to buy workers’ compensation coverage for their employees – coverage that will protect workers who are injured or who become sick due to their jobs. A small number of companies are exempt, such as companies with a very small number of employees or companies that are self-insured.
Last year the North Carolina Rate Bureau negotiated a previous rate decrease of four percent.