Running a business in Wilmington means you're part of one of North Carolina's most dynamic coastal economies. Between the Port of Wilmington's record-breaking cargo operations, a thriving film industry that brought in $201 million in 2024, and a booming tourism sector, there's real opportunity here. But here's what keeps business owners up at night: hurricanes. One major storm can shut down your operations for weeks, flood your property, and drain your bank account if you're not properly insured.
The good news? With the right insurance strategy, you can protect your business from Wilmington's unique risks—from tropical storms to the everyday exposures that come with operating near the Cape Fear River. Let's walk through what you actually need, what's required by law, and what coverage is worth the investment for your specific industry.
What's Required by North Carolina Law
If you employ three or more people in North Carolina, workers' compensation insurance isn't optional—it's the law. This applies whether you're structured as a corporation, LLC, partnership, or sole proprietorship. Even if you're a one-person operation now, once you hit that third employee, you need coverage in place.
Here's where it gets tricky: sole proprietors and LLC members don't automatically count as employees, but corporate officers do count toward that three-employee threshold even if they opt out of coverage. And if you use subcontractors who don't carry their own workers' comp insurance, you could be on the hook for their employees' injuries—regardless of how many people you directly employ. That's a risk many Wilmington business owners don't realize they're taking.
If your business uses vehicles—whether it's a plumbing van, a catering truck, or a company car—you'll need commercial auto insurance. North Carolina requires minimum liability coverage, but given the litigation environment, most business owners carry significantly higher limits. Tourism-related businesses like shuttles, tour operators, and transportation services need specialized coverage that accounts for passenger liability.
Hurricane Season and Flood Insurance: Your Biggest Risk
Let's be blunt: if you don't have flood insurance for your Wilmington business, you're gambling with your livelihood. Standard commercial property policies don't cover flood damage. Not a drop. When Potential Tropical Cyclone Eight flooded New Hanover County in September 2024, businesses without flood coverage were left to pay for damages out of pocket—and we're talking about tens or hundreds of thousands of dollars in losses.
The National Flood Insurance Program offers up to $500,000 for your building and another $500,000 for contents. If your business is worth more than that—and many are—you'll need to supplement with private flood insurance. Here's a statistic that should get your attention: nearly 25% of all flood claims in North Carolina come from properties outside designated high-risk flood zones. Insurance experts say everyone in Wilmington is in a flood zone—it's just a matter of higher or lower risk.
Don't forget business interruption coverage. When Hurricane Florence hit in 2018, some Wilmington businesses were closed for weeks. Even if your building survives intact, mandatory evacuations, power outages, and impassable roads can shut you down. Business interruption insurance replaces your lost income and covers ongoing expenses like rent and payroll while you're unable to operate. For many Cape Fear businesses, this coverage is the difference between weathering a storm and closing permanently.
Industry-Specific Coverage for Wilmington Businesses
Port and Marine Operations
The Port of Wilmington moved 17,000 containers by rail in fiscal year 2024—a record year—and handled 4.2 million short tons of bulk and breakbulk cargo. If your business operates near the port or provides logistics, warehousing, or transportation services, you need specialized marine coverage. Inland marine insurance protects goods in transit, equipment, and cargo while it's being moved or stored. General liability alone won't cut it when you're handling millions of dollars in freight.
Film and Entertainment Production
Wilmington's film industry is booming again, with productions like Season 3 of The Summer I Turned Pretty and Netflix's The Waterfront filming locally in 2024. If you work in film production, you need comprehensive general liability that covers third-party injuries on set, equipment coverage for cameras and lighting worth hundreds of thousands of dollars, and specialized entertainment insurance that covers everything from cast injuries to production delays. The expansion of Dark Horse Stages with two new 20,000-square-foot sound stages means more production work—and more insurance needs—for local crews and vendors.
Tourism and Hospitality
Hotels, restaurants, tour operators, and retail shops catering to tourists face unique liability exposures. Slip-and-fall claims, foodborne illness allegations, and liquor liability if you serve alcohol—these risks demand robust general liability coverage and often an umbrella policy for additional protection. Many tourism businesses also need cyber liability insurance to protect customer payment information, especially after high-profile data breaches in the hospitality industry.
Building the Right Insurance Package
Most Wilmington businesses benefit from a Business Owner's Policy, or BOP, which bundles general liability, commercial property, and business interruption coverage into one package. It's typically more affordable than buying each policy separately, and it covers the basics—property damage, liability claims, and lost income if disaster strikes.
But a BOP alone isn't enough in Wilmington. You'll need to add flood insurance—no question about it. Depending on your industry, consider professional liability insurance if you provide advice or services, cyber liability to protect against data breaches, and employment practices liability to defend against wrongful termination or discrimination claims. Given the tight labor market in Wilmington, with 62,000 people employed across major sectors like healthcare, retail, and professional services, employment claims are becoming more common.
Getting Started with Business Insurance
Start by documenting what you own—property, equipment, inventory, vehicles—and what you do. An insurance agent familiar with Wilmington's market can help you identify exposures you might not have considered. Make sure to ask about flood coverage limits, business interruption waiting periods, and whether your policy covers named storms differently than other perils.
Don't wait until hurricane season starts to secure coverage. Insurance companies often restrict new policies or endorsements when a named storm enters the Atlantic. Get your coverage in place early in the year, review it annually, and update it whenever your business changes—new locations, new equipment, new services all affect your insurance needs.
Wilmington is a great place to do business—growing industries, strong infrastructure, and a quality of life that attracts talented workers. But coastal business ownership comes with real risks. The right insurance doesn't just protect your assets; it gives you peace of mind so you can focus on growing your company instead of worrying about the next storm.
