Running your own business comes with a unique set of rewards and responsibilities. But when you’re self-employed and suffer a work-related injury, it can raise a difficult question: Who will help cover your medical bills and lost income? While traditional employees have access to employer-provided workers’ compensation, independent contractors, freelancers, and solo business owners must take extra steps to protect themselves.
At Mehta & McConnell, PLLC, we’ve helped many Charlotte-based individuals navigate this complex landscape. Whether you’re a full-time freelancer or an independent contractor in the trades, knowing your rights and options under North Carolina law is critical.
Understanding Self-Employed Workers’ Compensation Options in North Carolina
The North Carolina Workers’ Compensation Act requires employees of companies with three or more employees to secure coverage for workplace injuries. However, non-employee workers, such as independent contractors or freelancers, are not included in an employer’s coverage. If you’re a contractor or self-employed, you typically must proactively purchase your own workers’ compensation policy to be eligible for benefits.
That said, there are limited circumstances where you may still qualify under another party’s coverage, particularly if you’re misclassified as an independent contractor. In either scenario, the keyword is preparedness. Self-employed workers should proactively assess their level of occupational risk and weigh the long-term consequences of operating without protection. By securing proper coverage, you’re not just investing in your safety but safeguarding your ability to recover.
Common Work Arrangements That May Require Extra Attention
Certain job roles or classifications are more likely to fall into legal gray areas regarding workers’ comp eligibility. These arrangements include:
- Sole proprietors who operate under their name without forming an LLC or corporation;
- Freelancers working in fields like graphic design, consulting, or marketing;
- Contract-based professionals, such as gig workers or tradespeople hired by third parties; and
- Owners of small LLCs who have not elected to cover themselves under a policy.
Each of these roles can blur the line between contractor and employee. However, none are free from risk of injury, even if your business is small or seasonal. From ladder falls to repetitive stress injuries, these incidents can jeopardize your livelihood. Taking time to understand the specifics of your work arrangement and insurance needs can be the difference between timely recovery and long-term financial strain. If you’re unsure about your classification or risk exposure, speaking with a North Carolina workers’ comp attorney is wise.
What Options Are Available to Self-Employed Workers?
Since self-employed individuals in North Carolina are not automatically covered by the state’s workers’ comp system, you must seek out appropriate insurance to protect yourself in the event of a work-related injury.
Your options may include:
- Applying for a private workers’ compensation policy through an insurance carrier or the North Carolina Rate Bureau;
- Electing to include yourself in coverage, if you’re the owner or officer of a registered business entity such as a corporation or LLC (this must be clearly stated in the policy);
- Consulting an insurance professional who understands North Carolina workers’ comp rules and can help you assess your occupational risk and policy options; and
- Considering business structures (like an LLC or S corporation) that may offer more control over how coverage is structured or elected.
Many self-employed workers assume that their private health insurance can cover any injuries on the job. However, while private insurance may cover some medical costs, it doesn’t replace lost wages or provide disability benefits if you’re unable to work. For self-employed workers, having a dedicated workers’ comp policy offers vital protection that personal health insurance simply can’t match.
Legal Protections for Misclassified Contractors
Sometimes, businesses misclassify employees as independent contractors to avoid paying workers’ comp premiums. North Carolina law does not allow this practice. If you’re injured while working under such conditions, you may still qualify for benefits.
The North Carolina Industrial Commission typically looks at several factors to determine employment status, including:
- Degree of control—whether the employer dictated your schedule and tasks;
- Provision of equipment—who supplied the tools and work environment;
- Nature of the relationship—whether the work was temporary or ongoing; and
- Method of payment—hourly wage vs. project-based invoicing.
If these factors lean toward an employer-employee relationship, you might be entitled to workers’ compensation even if you were labeled a contractor. Mehta & McConnell can help you evaluate your circumstances and pursue appropriate action if you’re misclassified.
Filing a Self-Employed Injury Claim
Documentation is key when pursuing self-employed injury claims. The more you can demonstrate your work-related duties and financial losses, the stronger your case will be.
To begin, gather:
- Medical records showing diagnosis and treatment;
- Invoices or contracts tied to the job during which you were injured;
- Proof of income before the incident; and
- Witness statements or communications with the client/company.
You should also report the incident immediately and contact an experienced workers’ comp attorney to evaluate your situation.
Unique Challenges for Freelancers and Independent Contractor Injury Benefits in NC
Freelancers and gig workers often juggle multiple clients. This can create confusion when an injury occurs, especially if it’s unclear which project or client the injury was tied to.
In our experience with workers’ comp for freelancers in NC, the biggest pitfalls include:
- Lack of formal contracts that define scope of work;
- Vague communication with clients about roles and responsibilities;
- Absence of a written agreement about insurance obligations; and
- Multiple sources of income that make wage replacement calculations complex.
Taking proactive steps to address these issues can strengthen your ability to file a valid claim. Our team at Mehta & McConnell is here to help you identify and resolve these challenges before they become roadblocks.
FAQs
Are Self-Employed Individuals Eligible for Workers’ Comp in NC?
Generally, self-employed individuals are not automatically covered and must obtain their own policy. However, depending on the work arrangement, misclassified contractors may qualify under an employer’s coverage. Speaking with a knowledgeable attorney can help clarify where you stand.
How Can Freelancers Obtain Workers’ Compensation Coverage in North Carolina?
Freelancers can purchase a private workers’ compensation policy or form a business entity and elect to include themselves. Speaking with a local insurance agent can help tailor coverage to your risk profile. You should also review the terms annually to ensure proper protection as your work evolves.
What Steps Should an Independent Contractor Take After a Work-Related Injury in NC?
You should seek medical attention, gather relevant work documentation, notify the hiring party, and consult an experienced workers’ comp attorney. Acting quickly improves the chances of a successful claim. Mehta & McConnell can help you pursue benefits and assert your rights throughout the process.
How Mehta & McConnell Assists Self-Employed Workers
At Mehta & McConnell, PLLC, we understand the pressures of self-employment. We’ve worked with clients throughout Charlotte and across North Carolina to:
- Evaluate whether injuries qualify for compensation under existing policies;
- Help freelancers and independent contractors understand their rights;
- Navigate disputes over misclassification and insurance coverage; and
- File valid self-employed injury claims supported by strong evidence.
Both of our attorneys are board-certified in workers’ compensation law by the North Carolina State Bar and bring decades of combined experience to the table. We’ve spent years on the defense side of insurance claims and now use that insight to advocate for injured individuals.
Your North Carolina Workers’ Compensation Lawyers
Self-employed individuals enjoy much freedom in their work, but that doesn’t mean they’re immune to risks. One serious injury could affect your ability to earn a living for months or even years. That’s why understanding your options for self-employed workers’ compensation in North Carolina is more than just smart: It’s essential.At Mehta & McConnell, we’re here to guide you through every step, from evaluating your eligibility to building a solid claim. If you’re a freelancer, independent contractor, or small business owner injured on the job, don’t face the system alone. Contact our Charlotte-based firm today for a free consultation and let us help you protect your health and your future.
Mehta & McConnell Injury Lawyers
Mehta & McConnell, PLLC was founded in 2021 to represent individuals who are injured at work or due to the negligence of someone else. Both of our attorneys began their careers as defense attorneys representing large corporations and insurance companies, but we now only represent injured individuals.
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