NC BUSINESS INSURANCE: 2023 Requirements & The Top Reliable Companies (Updated)

nc business insurance
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Most businesses in North Carolina are small, and they make up 46% of the private workforce in the state. Each business requires insurance to help safeguard its property, revenue, and other assets. In this guide, you’ll learn more about the business insurance requirements in NC and get a full list of insurance companies available. 

Top Business Insurance Policies in NC

#1. Liability Insurance

One of the most important insurance products that NC business owners can have is liability insurance. North Carolina Liability Insurance protects your company from accusations that it is accountable for causing reputational harm, physical damage, or bodily harm to another. 

A Business Owner’s Policy (BOP) insurance package frequently includes liability insurance and business property insurance. A BOP is useful for business owners since it covers a wide range of common types of claims. Furthermore, bundling these important coverages into a single comprehensive policy frequently saves organizations money. A North Carolina Business Owner’s Policy can also be tailored to match the specific needs of a company by including optional coverages. A Business Owner’s Policy will protect you in the following situations:

  • Your company is accused of causing reputational harm after comparing your services to those of another company on your website.
  • A customer slips and falls at your company, has surgery, and is now suing you to reimburse their medical expenditures.
  • A consumer alleges that your company destroyed their property and demands that you fully repair it.

#2. NC Business Owner’s Policy

For North Carolina business owners, a Business Owner’s Policy combines business property and business liability insurance coverage into a single policy. A Business Owner’s Policy (BOP) can help protect your North Carolina company from the costs of fire damage, vandalism, and other covered claims. A BOP also contains business income insurance coverage to restore lost income if a company’s operations must be halted due to a covered loss. Businesses in North Carolina can customize a BOP to match their specific needs by adding optional coverages such as data breach insurance. Consider purchasing a BOP if, for example,

  • Your company contains inventory that could be damaged or stolen. Digital assets, client information, office furniture or equipment, cash, or other goods are all examples of this.
  • Your company owns or rents a physical site, such as a storefront, an office building, or another workplace.
  • A lawsuit is filed against your company. This might be a customer being hurt at your workplace.

#3. Commercial Flood Insurance 

Commercial Flood Insurance protects your North Carolina business from harm caused by flood waters. A commercial flood insurance policy will not only protect your physical assets and content, but it will also protect your business’s location. Commercial flood insurance coverage is intended to assist protect your North Carolina business from the costs associated with floodwater damage to any portion of your organization, including flooring, walls, ceilings, fixtures, furniture, and inventory. Even if you live in a low-risk location, consider commercial flood insurance if, for example:

  • You own a business in a region with cold winters, snow, and mild springs. Flooding is primarily caused by rapidly melting snow.
  • Where your firm is located, you have moderate to heavy rainfall throughout the year. Even with light rain, municipal drains can become plugged and overflow into your office, creating flooding.

#4. Workers’ Compensation Insurance 

The North Carolina Workers’ Compensation Act requires all North Carolina businesses with three or more employees, including corporations, sole proprietorships, limited liability companies, and partnerships, to obtain workers’ compensation insurance or qualify as self-insured employers in order to pay workers’ compensation benefits to their employees. Workers’ Compensation Insurance compensates employees for work-related injuries or illnesses, including lost earnings, medical care, and other benefits. Workers’ compensation might even provide cash assistance to the family of a deceased worker. Worker’s compensation insurance can help safeguard your NC business in the following scenarios:

  • An employee trips over a rug in your workplace, injures himself, and necessitates a trip to the ER and weeks of rehabilitation time.
  • An employee injures her back while lifting a box of office supplies, necessitating medical treatment, medication, and ongoing physical therapy.
  • The employee on his way back to the office from a customer visit at the lake gets involved in a car accident and requires an ambulance ride to the hospital as well as medical treatment.

Business insurance requirements NC

Which business insurance coverage you require is influenced by state legislation. These policies are mandatory throughout North Carolina, from Charlotte to Raleigh.

#1. Workers’ compensation insurance

Workers’ compensation insurance is required by North Carolina state law for any enterprises that employ three or more people, full-time or part-time.

This commercial insurance policy covers medical expenses for workplace injuries and illnesses. It also provides disability benefits to wounded North Carolina workers and shields employers from liability in the event of an accident.

#2. Commercial Auto Insurance 

Commercial auto insurance is required in North Carolina for all business-owned automobiles. This policy covers the costs of work-related car accidents.

The following are North Carolina’s minimum requirements for auto liability insurance (including uninsured motorist coverage):

  • Bodily injury liability of $30,000 per person
  • Bodily harm liability of $60,000 per accident
  • Property damage liability of $25,000

To comply with regulations, trucking companies may require additional coverage.

Hired and non-owned auto insurance (HNOA) should cover personal cars driven for work, even if it’s not required. This is because most personal auto insurance plans don’t cover business use. It is an endorsement that can be added to a business owner’s policy (BOP) or commercial general liability insurance.

How Much Does Business Insurance in NC Cost?

You know you need liability insurance as a small business owner, but the most often question we get is, “How much?”

Most business insurance costs between $350 and $750 per year. The amount of liability insurance required will differ from person to person based on a variety of criteria, including the type of business you run and the specific risks that come with it. Furthermore, if you have a contractual arrangement with a large company, this is another aspect that may necessitate the need for increased liability coverage; this is because many of these large firms want a particular amount of liability coverage in order to conduct business with them.

Factors That Could Affect The Cost Of Your General Liability Insurance in NC

#1. Your company’s structure.

While all businesses face the danger of a lawsuit, some are more vulnerable than others. If your company’s structure is prone to lawsuits, you may need to get a more expensive general liability policy.

#2. Previous claims

Have you ever had a liability lawsuit filed against your company? This could affect your eligibility for general liability insurance as well as the price.

#3. Location.

When starting a business, all you hear is location. However, just as your location might help you attract new consumers, it may also influence the amount of general liability coverage you require. For example, if you’re starting a firm in a state with a history of significant tort claims, you may need greater general liability coverage than in other states.

#4. Your company’s type.

Some industries are “riskier” by definition. Contractors and organizations with vehicles on the road, for example, may need to enhance their general liability coverage to ensure they are appropriately insured.

#5. The size of your company.

Finally, the size of your company influences the quantity of general liability insurance you’ll require. It stands to reason that the larger your company and the more commercial vehicles you have on the road, the more coverage you’ll require.

Business Insurance Companies In NC

Here is a list of the best business insurance companies in NC:

  • Central Insurance
  • Travelers
  • Builders and Tradesmen Insurance
  • Hiscox
  • Frederick Mutual Insurance Company
  • Liberty Mutual 
  • REInsurePro
  • Frank Winston Crum Insurance
  • Nationwide
  • Prime Insurance Company
  • West Bend
  • Selective Insurance 
  • Encova
  • Progressive
  • EMC Insurance Companies 
  • Joyn Insurance 
  • ICW Group Insurance Companies
  • The Hanover Insurance Group
  • Stillwater
  • pomi
  • State Auto
  • Main Street America Insurance 
  • Westfield
  • Coterie

In Conclusion,

Every business owner in NC needs insurance coverage, and understanding the different policies and how they work will help you make better purchasing decisions. We hope this guide has been helpful.

Frequently Asked Questions

Do I need a business license in NC?

NC does not have a general business license, so, businesses in the state are not required to obtain one.

How much does it cost to register an LLC in NC?

It will cost an average of $125 to register an LLC in NC. If you want to reserve your LLC name before submitting the Articles of Organization, you must complete a name reservation application for $30.

How much is a small business license in NC?

A small business license costs $18, including a $2 electronic filing fee.

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