Labor Law Center Blog » Blog Archive » More on Those New North Carolina Labor Laws, Part II

More on Those New North Carolina Labor Laws, Part II

January 11th, 2007 Posted by Mark

All employers should be worried about their insurance companies, whether it be for their workers’ comp insurance, for their property insurance, for their casualty insurance, for their health benefits insurance—what have you. But with workers’ comp insurance, it is especially important to have the proper insurer in place. Workers’ comp claims, especially for a large employer, can come fast and a plenty, and then every once in a while you will have that one big claim that looks to sink the bank like a rogue wave overcoming a vessel at sea. Many insurance companies can handle that steady trickle of small claims, but you need a special, trustworthy insurance company to make sure you can weather those infrequent but dangerous large claims.

A steady insurance carrier will be there for you, as these large claims can take an average of a handful of years to be ironed out. What if your insurance company is insolvent by the time your workers’ comp claim settles? What if they decide to dump your account and fight you for every penny over this large claim? In those situations, you are not working with the right worker’s comp insurance company.

A recent North Carolina law is meant to help you and other North Carolina employers have access to only the best insurance companies. The law, Senate Bill 615, Session Law 2006-105, is meant to improve the North Carolina insurance laws so that insurance companies are stronger for it. The North Carolina insurance law in question—the Insurance Holding Company Act—will both et technical and policy, or substantive, corrections to it.

Their ultimate goal is to make incorporated insurers in the state of North Carolina more financially stable, or solvent, thereby giving business owners and even homeowners and other personal policyholders a strong set of partners to choose from when it comes to picking an insurance carrier.