Workers compensation in North Carolina is priced on your payroll, the kind of work your people do, and your claims history, not a flat fee. As a rough guide, small low-risk offices often pay a few hundred to a couple thousand dollars a year, while trades and restaurants pay more because the work is riskier.
Who this is for: North Carolina owners who want to understand what drives their price and roughly what to expect.
The short version
- Payroll is the base. Premium is figured per $100 of payroll in each kind of work.
- Your type of work sets the rate. Roofing costs far more than office work per dollar of payroll.
- Claims history moves your price. A record of past claims can raise or lower what you pay.
- North Carolina uses its own rating bureau. The state publishes base rates, called advisory loss costs, and each carrier adds its own markup to set your final price.
- Prices have been falling. As of mid-2026, statewide advisory loss costs dropped about 7.8 percent on average from a year earlier.
What drives your price
Three things do most of the work: how much payroll you run, the category your work falls into for pricing, and your history of claims. North Carolina is not an NCCI state; the North Carolina Rate Bureau files advisory loss costs, and each insurer applies its own multiplier for expenses and profit to set the final rate. That is why two businesses in the same trade can be quoted differently.
| Business type | Illustrative annual range |
|---|---|
| Office or professional services | $500 to $2,200 a year |
| Restaurant or cafe | $2,200 to $9,000 a year |
| Landscaper or small contractor | $3,000 to $13,000 a year |
| Cleaning or janitorial | $2,600 to $10,000 a year |
| Retail store | $1,100 to $4,600 a year |
The mid-2026 rate picture
Advisory loss costs in North Carolina reset each April 1. The filing effective April 1, 2026 came in about 7.8 percent lower on average than the year before, part of several years of declines. These are advisory loss costs, not final rates, so your quote depends on the carrier's own markup, your payroll, and your claims record. Treat any single number as a starting point and shop the market.
How to lower it
Classify your payroll correctly so office staff are not priced as field crews, keep your claims history clean with basic safety and return-to-work steps, and compare carriers, since each sets its own markup over the same loss costs. A broker can review your payroll split before you buy.
A Hickory example
Illustrative, not a quote. A Hickory landscaper with $300,000 in field payroll gets quotes that differ by hundreds of dollars, because each carrier applies its own multiplier to the same state loss costs. By splitting out the office manager's pay into the lower office category and cleaning up a small past claim, the owner brings the number down. See our landscaper workers comp page.
Real questions North Carolina owners ask
How much does workers comp cost in North Carolina?
It depends on your payroll, the kind of work, and your claims history. Low-risk offices often pay a few hundred to a couple thousand a year; trades pay more.
How is the premium figured?
Per $100 of payroll in each kind of work, times a rate for that work, adjusted for your claims history. More payroll or riskier work means a higher premium.
Does North Carolina use the same national rate system as most states?
No. Most states use a national bureau (NCCI) to set base rates, but North Carolina runs its own rating bureau, and each carrier adds its own markup.
Are prices going up or down?
Down recently. As of mid-2026, statewide advisory loss costs came in about 7.8 percent lower on average than the year before.
Why do two quotes differ so much?
Because each carrier applies its own markup over the same state loss costs, and your payroll split and claims history change the math.
How can I lower my premium?
Classify payroll correctly, keep claims low with basic safety and return-to-work steps, and compare carriers, since each sets its own markup.
Why North Carolina owners choose Morrow
- We shop the right market for you. In North Carolina you buy workers comp on the open market from any private insurer licensed in the state, because North Carolina has no state fund, and if no carrier will take you the North Carolina Rate Bureau runs a guaranteed fallback plan, so we can shop your rate freely and still have a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related North Carolina guides
Every North Carolina business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in North Carolina (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- North Carolina landscaper workers comp
This guide is general information, not legal advice. North Carolina rules and penalty amounts can change, so verify current requirements with North Carolina Industrial Commission or a licensed advisor before you rely on them. Last updated: July 2026.