Key Takeaways
- North Carolina commercial property insurance uses file and use rate regulation for most lines
- Commercial policies must disclose terrorism coverage options under TRIA
- North Carolina allows surplus lines placement after diligent search of admitted market
- Surplus lines tax in North Carolina is 5% of premium
- Business interruption and extra expense coverage follow standard commercial forms
Last updated: January 2026
North Carolina Commercial Property Insurance
North Carolina regulates commercial property insurance with specific requirements for rates, surplus lines, and coverage availability.
Rate Regulation
North Carolina uses file and use for most commercial property insurance:
- Rates filed with NCDOI
- May be used upon filing
- Subject to NCDOI review after implementation
- Must not be excessive, inadequate, or unfairly discriminatory
Commercial Rate Filing
| Requirement | Details |
|---|---|
| Filing | Required before use |
| Approval | Not required before use (file and use) |
| Review | NCDOI reviews after implementation |
| Disapproval | NCDOI can disapprove after review |
Terrorism Insurance
TRIA (Terrorism Risk Insurance Act)
- Federal program providing terrorism insurance backstop
- North Carolina insurers must offer terrorism coverage
- Policyholder can accept or reject terrorism coverage
- Disclosure of coverage terms required
Required Disclosures
- Coverage limits for terrorism
- Premium for terrorism coverage
- Right to accept or reject
- Exclusions and limitations
Commercial Property Coverage
North Carolina commercial property follows standard forms:
Coverage Types
| Coverage | Description |
|---|---|
| Building | Structure and permanently attached items |
| Business Personal Property | Contents, inventory, equipment |
| Business Income | Lost income during restoration |
| Extra Expense | Additional costs to continue operations |
Surplus Lines Insurance
North Carolina allows surplus lines insurance for risks not available in the admitted market:
Surplus Lines Requirements
| Requirement | Details |
|---|---|
| Diligent Search | Must attempt to place with admitted insurers |
| Surplus Lines Licensee | Must use licensed surplus lines agent |
| Surplus Lines Tax | 5% of premium |
| Stamping Office | NC Surplus Lines Association |
| Disclosure | Must disclose surplus lines status to insured |
Exempt Commercial Purchasers
Certain large commercial purchasers may be exempt from diligent search:
- Net worth over $20 million, OR
- Annual revenues over $50 million, OR
- Other qualifying criteria
Surplus Lines Eligibility
To place coverage in surplus lines market:
- Risk not available from admitted insurers
- Diligent search documented (unless exempt)
- Surplus lines insurer on approved list
- Licensed surplus lines agent handles transaction
- 5% tax collected and remitted
Business Interruption Insurance
North Carolina commercial policies include business interruption provisions:
Key Provisions
- Coverage for lost income during restoration period
- Waiting period typically 72 hours
- Period of restoration clearly defined
- Extended period of indemnity available
- Civil authority coverage for government-ordered closures
Extra Expense Coverage
- Covers costs to continue operations during restoration
- Separate limit from business interruption
- Examples: temporary location, expedited repairs
Builders Risk
North Carolina builders risk insurance:
- Covers buildings under construction
- Available on completed value or reporting form
- Theft coverage may require endorsement
- Transit coverage for materials available
Test Your Knowledge
What is the North Carolina surplus lines tax rate?
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Test Your Knowledge
What rate system does North Carolina use for most commercial property insurance?
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