North Carolina Workers Compensation Insurance Options For Small Businesses

While still facing the effects of the economic downturn of the 2008-2010 recession, North Carolina small businesses are struggling just to survive and stay afloat. For many companies in the state, just paying mandatory employee-related business expenses is a stressful obligation. Next to maintaining inventory, one of the highest costs to run a small business in NC is the expensive mandatory costs associated with payroll. These mandatory expenses include the costs of state and federal taxes as well as one of the hardest hitting mandatory payroll expenses- workers' compensation insurance.

Regulated by the North Carolina Industrial Commission, the North Carolina Workers' Compensation Act states that all employers within the state whom maintain at least 3 or more employees are required by state law to carry workers' compensation insurance. This mandatory law has been in effect for many years but recently because of the poor economy and rising work comp premiums, it is causing employers struggling to afford their employees very few options. Many see no choice but to lay off workers or find other ways to lower their North Carolina workers' compensation insurance premiums.

North Carolina Workers Compensation Insurance Options For Small Businesses

Small business employers would prefer proactive methods to lower North Carolina workers' compensation insurance premiums while maintaining their labor force. Employee leasing companies are providing the solutions NC companies need. These companies are being utilized more frequently as the best way to reduce North Carolina workers' compensation insurance costs without reducing staff. When small businesses utilize this option, they are able to save thousands of dollars each year and not only maintain the employees they have, but become able to hire more and increase productivity.

The best savings, sometimes as much as $10,000+ each year, are being seen by companies that employ labor in high risk industries and use work comp job codes for their employees classified as high risk. These savings translate into significantly lower labor costs and give businesses the opportunity to make more competitive business decisions and get ahead of their local competition.

Employee leasing companies, also known as Professional Employer Organizations, are able to provide savings by grouping thousands of North Carolina small businesses seeking the same work comp solutions together into a master policy. This allows for serious rate reductions that many average small businesses never see when obtaining an workers' compensation insurance policy on their own. One downside, however, is that there are many Professional Employer Organizations- and it can be overwhelming trying to pick the best one.

North Carolina Workers Compensation Insurance Options For Small Businesses

An employee leasing or PEO broker can help many businesses pick the right Professional Employer Organization. These educated professionals can answer questions about employee leasing and PEOs- as well as find a company for your business that will offer the best savings on workers' compensation insurance. They have access to hundreds of state-approved employee leasing companies and their job is to make sure you are set up with one that is not only approved by your state, but is also the best fit for your company. In addition to North Carolina workers' compensation savings, these brokers have access to other employee-related cost reducing options businesses can use to save money.