NC General Statutes

N.C. Gen. Stat. § 97-95 (2026)

Actions against employers failing to effect insurance or qualify as self-insurer

✓ current as of July 2026

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As to every employer subject to the provisions of this Article who shall fail or neglect to keep in effect a policy of insurance against compensation liability arising hereunder with some insurance carrier as provided in G.S. 97-93, or who shall fail to qualify as a self-insurer as provided in the Article, in addition to other penalties provided by this Article, such employer shall be liable in a civil action which may be instituted by the claimant for all such compensation as may be awarded by the Industrial Commission in a proceeding properly instituted before said Commission, and such action may be brought by the claimant in the county of his residence or in any county in which the defendant has any property in this State; and in said civil action, ancillary remedies provided by law in civil actions of attachment, receivership, and other appropriate ancillary remedies shall be available to plaintiff therein. Said action may be instituted before the award shall be made by the Industrial Commission in such case for the purpose of preventing the defendant from disposing of or removing from the State of North Carolina for the purpose of defeating the payment of compensation any property which the defendant may own in this State. In said action, after being instituted, the court may, after proper amendment to the pleadings therein, permit the recovery of a judgment against the defendant for the amount of compensation duly awarded by the North Carolina Industrial Commission and subject any property seized in said action for payment of the judgment so awarded. The institution of said action shall in no wise interfere with the jurisdiction of said Industrial Commission in hearing and determining the claim for compensation in full accord with the provisions of this Article. Nothing in this section shall be construed to limit or abridge the rights of an employee as provided in subsection (b) of G.S. 97-94. (1941, c. 352.)

§ 97-96: Repealed by Session Laws 1997-362, s. 7.

Notes of Decisions

Cited in 4 cases (1 in the last 5 years), 1992–2025 · leading case: Zocco v. United States, Dep't of the Army, 791 F. Supp. 595 (E.D.N.C. 1992).

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Zocco v. United States, Dep't of the Army, 791 F. Supp. 595 (E.D.N.C. 1992). · cites it 4× “N.C.Gen.Stat. § 97-95. Thus, Zocco does not face a threat of inconsistent judgments.”

Nelson v. Hayes, 448 S.E.2d 848 (N.C. Ct. App. 1994). · cites it 22× “Plaintiff argues that the trial court committed reversible error when it entered its order setting aside the attachment issued by the assistant clerk of court, in that the attachment complied with the grounds set forth in North Carolina General Statutes § 97-95 (1991), for an…”

Ryles v. Durham Cnty. Hosp. Corp., Inc., 420 S.E.2d 487 (N.C. Ct. App. 1992). · cites it 2× “N.C. Gen. Stat. § 97-95 (1991). An employee not covered by a workers’ compensation policy has recourse pursuant to statute: As to every employer subject to the provisions of this Article who shall fail or neglect to keep in effect a policy of insurance against compensation…”

Cloer v. King Arthur (N.C. Ct. App. 2025). · cites it 2× “455, 461 (1992); N.C. Gen. Stat. § 97-95 (2023). Nevertheless, “[e]very employer is required to secure its obligations under the Act by either insuring its workers’ compensation liability or self-insuring where it has the financial ability to pay for benefits.”

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