North Carolina Workers’ Comp Exemption
We file workers’ compensation exemptions for North Carolina sole proprietors, LLC members, and corporate officers. Send us your details and we’ll confirm whether you qualify and handle the filing.
When coverage is required in North Carolina
The Workers' Compensation Act applies to employers regularly employing three (3) or more employees in the same business/establishment. The NC Industrial Commission's own coverage-requirements page also states that employers with even one employee engaged in activities involving the use or presence of radiation must carry coverage regardless of total headcount.
Who can be excluded in North Carolina
Sole proprietors
Not automatically counted as an employee and not automatically covered. Per N.C. Gen. Stat. Section 97-2, a sole proprietor actively engaged in operating the business may elect to be included as an employee under the business's workers' compensation coverage, provided the insurer is notified of the election. Default status is excluded; opting IN is the affirmative act, done at the policy/insurer level (no separate state exemption filing needed because there is nothing to be exempted from by default).
Partners
Same rule as sole proprietors under N.C. Gen. Stat. Section 97-2: a partner actively engaged in operating the business may elect to be included as an employee under the business's coverage by notifying the insurer; not automatically counted or covered otherwise.
LLC members
Same rule as sole proprietors/partners under N.C. Gen. Stat. Section 97-2: an LLC member actively engaged in operating the business may elect to be included as an employee under the business's coverage by notifying the insurer; not automatically counted or covered otherwise.
Corporate officers
The opposite default from owners: under N.C. Gen. Stat. Section 97-2, every executive officer elected or appointed and empowered per the corporation's charter and bylaws IS considered an employee by default. Officers count toward the 3-employee threshold even if later excluded. A corporation may specifically exclude an executive officer from coverage in its insurance contract; the exclusion lasts for the period that policy is in effect. This is a carrier/policy-level exclusion, not a state filing.
How the exemption is filed
North Carolina does not run a state exemption-certificate registry. For owners (sole proprietors, partners, LLC members), the default is EXCLUDED, and they opt IN to coverage by notifying the insurer -- no state filing. For corporate officers, the default is INCLUDED, and the corporation opts them OUT by specifically excluding the officer in the insurance contract -- again a carrier-level action, not a filing with the NC Industrial Commission.
- Form
- No state exemption form — see above
- Statute
- N.C. Gen. Stat. Section 97-2 (definitions: employee, employer, officer inclusion, owner election, 3-employee 'employment' threshold)
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
Regime type: no state exemption certificate exists in NC. Owners (sole prop/partner/LLC member) are excluded by default and elect IN via insurer notice; corporate officers are included by default and are excluded via a specific carrier-policy exclusion. Construction-specific rules were not found in the sources reviewed and are left null rather than guessed.
Sources
- https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_97/GS_97-2.html
- https://www.ic.nc.gov/wcinsrqmt.html
Source material dated Statute and agency pages undated as displayed; accessed 2026-08-30. Compiled from official North Carolina sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with North Carolina Industrial Commission or ask us and we’ll check it for you.
Workers' comp exemption filing in North Carolina
Tell us about your North Carolina business and we'll confirm whether you qualify for an exemption.