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    North Carolina General Liability Insurance

    North Carolina General Liability Insurance

    Given that North Carolina is home to nearly 10 million people, it is not surprising that many of them are employed by small businesses. Small businesses account for roughly 98% of all North Carolina firms and 46% of the state's private workforce. Let us provide more information about general liability insurance in North Carolina to protect your company's income, property, and other assets. 

    If you own a small business in North Carolina, the following information will assist you in understanding North Carolina general liability insurance and protecting your business and personal assets from legal claims and settlements that can result in financial devastation.

    What General Liability Insurance In North Carolina 

    Commercial liability insurance (also known as business liability insurance and commercial general liability insurance) safeguards your North Carolina business against financial loss resulting from claims of injury or damage caused by you or your workers to third parties. Typically, a policy covers:

    • Bodily Injury
    • Personal Injury 
    • Property Damage
    • Advertising Injury 
    • Legal Defense and Judgments

    Requirements Of General Liability Insurance In North Carolina 

    In North Carolina, general liability insurance is not required for businesses. North Carolina is a state where contributory negligence is the exclusive legal standard. If the plaintiff is at fault in an accident, he or she cannot claim any damages. Additionally, damage awards are not capped. The statute of limitations for personal injury caused by negligence ranges from three to ten years. Six years have passed from the date of purchase. In North Carolina, accidents and lawsuits (both legitimate and frivolous) do occur. If your North Carolina small business owns property or other valuable assets, it would be prudent to invest in enough commercial general liability coverage.

    Cost Of General Liability Insurance In North Carolina 

    As a general rule, the type of North Carolina business you operate or the goods you produce should decide the amount of North Carolina commercial general liability insurance you require. The optimal revenue range for the majority of small businesses is between $500,000 and $1 million. However, if your firm is high-risk, such as in the construction industry, or has a large volume of public engagement, such as a restaurant or retail store, you should consider expanding your coverage. Note that your homeowner's or renter's insurance has limited coverage for business liability and loss if you operate out of your house.

    Quick Small Business Statistics In North Carolina

    Here is a list of Small Businesses (SMBs) statistics for the state of North Carolina:

    • There are 934,604 small businesses in North Carolina, which account for 99.6% of the state's businesses
    • Small businesses employ 1.7 million people in North Carolina or 45.3% of all employment
    • In North Carolina, filing Articles of Incorporation to register a business costs $125
    • There is no requirement for a universal business license in North Carolina. However, companies must still obtain an operating license based on the county in which they operate and the products or services they provide
    • Business registration in North Carolina takes five to seven business days
    • In 2019, small and medium-sized businesses created 62,614 new employment. 40,060 of these jobs were created by businesses with fewer than 20 employees
    • The median average salary for self-employed individuals who operate their own business is $50,000, while the median salary of unincorporated business owners is $22,000
    • In the 4th quarter of 2018, 6,191 businesses ceased operations, resulting in the loss of 20,506 employment. During the same time, 5,956 new businesses were founded, generating 21,269 new jobs
    • State law in North Carolina mandates that all new North Carolina LLCs appoint a North Carolina registered agent who will be available during normal business hours at a physical address inside the state
    • There are 9,607 SMBs involved in export business, which generate 22.5% of the state's $29.2 billion in export revenue
    • With over 258,000 employees, SMBs in the hotel and food services industries account for 59.5% of the total private employment
    • The maximum corporate tax rate is 2.5%. This is 2.5% less than South Carolina and 3.5% less than the adjacent state of Virginia
    • The state income tax rate is restricted to 5.25%. This applies to LLCs whose income is passed through to the owner and is therefore considered personal income
    • State business incentives vary based on business type, industry, and county jurisdiction
    • There are 269 small companies operating in the mining, quarrying, and oil and gas extraction industries — there are 65 businesses with less than 20 employees

    Frequently Asked Questions

    Here are frequently asked questions regarding general liability insurance in North Carolina:

    Is North Carolina a no fault state?

    North Carolina is a "fault" or tort-based jurisdiction, which means that if you were injured in a car accident, you can seek compensation from the driver who caused the collision, or was "at fault."

    Who determines fault in an accident in NC?

    After a civil trial, the jury concludes that the other driver is 90% at blame and you are 10% at fault due to your speeding. Under North Carolina's standards on contributory negligence, you cannot collect anything from the other driver.

    Does police report automatically go to insurance?

    The police will not instantly send your insurance company the accident report. Your provider will only become aware of your accident if you or one of the other drivers involved reports it to file a claim.

    Other Insurance Types

    Premiums for general liability insurance in North Carolina are determined by a variety of criteria, including the services or products you offer, the number of employees you have, the length of time you've been in business, and your claims history. Typically, coverage is limited to a specified financial amount during the policy period.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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