South CarolinaWorkers' Compensation Insurance

Find the Best Workers' Compensation Insurance Options in South Carolina

There are about 418,000 small business owners in South Carolina. All South Carolina business owners need to at least consider getting workers' compensation insurance. This coverage is necessary for a business to get reimbursed for lost wages and medical expenses if a worker gets injured or ill due to job tasks or the workplace. 

Workers' comp is also typically mandatory for most businesses in the nation. In South Carolina, workers' comp is mandatory for businesses with four or more employees, with only a few exceptions.

Fortunately, an independent insurance agent in South Carolina can get you set up with the required amount of workers' comp fast. They know exactly how much coverage to include in your policy based on your specific business. But first, here's an overview of South Carolina workers' comp requirements and more.

South Carolina Workers' Compensation Laws

South Carolina workers' compensation requirements vary depending on a business's industry. But most, if not all, businesses in South Carolina with at least four employees must have workers' compensation insurance by state law. 

However, businesses with three employees or fewer often aren't required to have coverage. There may be some exceptions, though.

How Does Workers' Compensation Insurance Work in South Carolina?

In South Carolina, workers' compensation insurance works by offering reimbursement benefit payouts for employees who suffer from injuries or illnesses due to the workplace or job duties. 

Covered incidents may be due to an unsafe job site or work tasks or due to the equipment or materials required on the job. This coverage can also replace a portion of an employee's regular wages if they need time off work for treatment or recovery. Funeral costs, labs, prescription medications, and doctor's or hospital visits can be covered by South Carolina workers' comp.

Workers' comp is an essential part of a South Carolina business insurance policy. It exempts your company from employee lawsuits related to covered incidents. 

Perhaps even more importantly, family members of these affected employees are exempt from suing the business. Having workers' compensation insurance in South Carolina can protect your business from possible financial losses that could otherwise be hefty.

South Carolina Workers' Compensation Exemptions

There are some exemptions to South Carolina workers' comp state law requirements. Learn these exemptions to be certain about whether coverage is required for your company. South Carolina workers' comp exemptions include the following types of workers and industries:

• Business partners
• Sole proprietors
• Members of LLCs

A South Carolina independent insurance agent can help you determine for sure if your business is required by state law to have workers' comp insurance.

Do Independent Contractors Need Workers’ Comp Coverage?

South Carolina's state law requires businesses with four employees or more to have workers' comp. But also, by state law, there are a couple of exceptions to this requirement. Independent contractors are one of these exceptions and aren't required by the state to be covered by workers' comp.

Even though independent contractors aren't required by South Carolina state law to be covered by workers' comp, they can still choose to get coverage. If you work as an independent contractor in South Carolina, you don't have to worry about workers' comp requirements or possible resulting penalties from not having coverage, but you may still want to get coverage for extra protection against possible losses.

Do South Carolina Business Owners Need to Be Covered by Workers’ Compensation?

In certain cases, South Carolina business owners don't need to be covered by workers' comp. These include sole proprietors, partners in a business partnership, and independent contractors. Also, business owners who have fewer than four employees aren't required to have coverage.

Still, workers' comp can help you save thousands of dollars or more, even if you're not required to have it. Considering that just one workplace incident could result in costly medical treatment and time out of work, having workers' comp can still make a lot of sense. Without coverage, you could have to pay these costs out of your own pocket, which could result in a huge loss.

What Does South Carolina Workers' Compensation Cover?

South Carolina workers' comp works by reimbursing business employees for many of the potential costs related to incidents of employee injuries or illnesses. Covered costs can include doctor's visits, hospital stays, medications, treatments, and more. 

A variety of expenses can result from one employee's injury or illness. Workers' comp in South Carolina can also pay a portion of an affected employee's regular wages while they need time off to recover or get surgery or other treatments.

South Carolina workers' comp can also provide reimbursement for funeral expenses if a serious incident results in an employee's death. In turn, having coverage exempts a business from employee lawsuits for covered incidents. 

Further, the affected employee's family members cannot sue the business if workers' comp was available. Workers' comp can safeguard your business against serious incidents in a number of ways.

Here's a larger picture of what workers' comp covers in South Carolina:

• Medical expenses: Workers' comp can help pay for medical expenses after covered incidents, including prescription medications. For example, if an employee needs a prescription for chronic pain due to their job tasks, workers' comp can pay for it.
• Disability benefits: Workers' comp can also help pay for disability benefits, including temporary total disability benefits, permanent partial disability benefits, and permanent total disability benefits. If an employee qualifies for disability benefits due to a workplace incident, workers' comp can help cover these costs.
• Death benefits: Workers' comp can also help pay death benefits for employees who die due to a covered incident. The death benefits are most often paid to an employee's surviving dependent family members or spouse.
• Funeral costs: Workers' comp can even help cover funeral costs for deceased employees due to a covered incident. Reimbursement can apply to burial costs, coffins, and more.
• Ongoing care: Workers' comp can help pay for required ongoing care costs to continue treating a covered injury or illness. For example, if a worker needs physical therapy due to a workplace injury, this coverage can help pay for that cost.
• Time off during recovery: Workers' comp can help pay to replace some of an employee's wages while they take time off work to recover from a covered incident. For example, if an employee needs to stay at the hospital for two weeks after surgery due to a workplace incident, workers' comp can help continue some of the wages they would've made working during that time.

A South Carolina independent insurance agent can help review your policy's coverage in depth with you.

How Much Does Workers’ Compensation Insurance Cost in South Carolina?

The average cost of workers' compensation insurance in South Carolina is $68 per month or $816 per year. Note, though, that the cost of workers' comp insurance can vary based on many factors. The number of employees a company has, and its annual payroll heavily influence the cost of workers' comp.

A business's industry and location can also impact workers' comp costs. Since some industries come with an inherently higher risk level, including those in the construction industry and the trucking industry, insurance companies charge higher premiums for workers' comp in these industries. Also, a business's previous claims history and the limits applied to coverage can influence the cost of workers' comp.

How Can South Carolina Business Owners Save Money on Workers’ Comp?

South Carolina business owners can save money on workers' comp in a couple of ways. The state's "pay-as-you-go" payment option offers the benefit of a low upfront premium. This payment method also provides the ability to buy coverage based on actual payroll rather than projected or estimated payroll, which can help save a lot of money on workers' comp. Hiring seasonal or casual employees is another easy way to save on workers' comp.

Submitting proof to your insurance company that your business completed a safety program can also help you save money on workers' comp. Insurers like to see that your company has taken measures to reduce the risk of workplace incidents that would result in claims. Requiring your employees to complete a safety training is another way you could save money on workers' comp, provided you submit proof to your insurer. 

What Are the Penalties for Not Having Workers' Comp in South Carolina?

Businesses in South Carolina that don't comply with state law for workers' comp can face harsh penalties like fines or worse. The state's Workers' Compensation Commission can conduct an investigation to determine if a business owner needs to face prosecution. Criminal penalties can be applied to those who willfully forgo coverage.

If your business lacks workers' comp and an incident occurs, the affected employee can sue your business to collect the damages relating to their injury or illness and related expenses. Not having workers' comp can end up costing a company far more than just paying for premiums would have. It's always better to just get the required amount of workers' comp to be safe and avoid penalties.

How to Buy Workers' Compensation Insurance in South Carolina

South Carolina offers options for business owners to buy workers' compensation. The first method is to buy coverage through the voluntary market. A South Carolina business owner can also self-insure their company if they qualify. Workers' comp can also be purchased online, which is usually a fast and easy way to get covered.

However, the overall easiest method of obtaining workers' comp in South Carolina is by working with a local independent insurance agent. These agents can shop and compare policies from many different South Carolina insurers for you. They'll get you matched to a policy with the best blend of coverage and cost.

Best Workers' Compensation Insurance Companies in South Carolina

Workers' comp is available from many different insurance companies in South Carolina. To get your business equipped with the best coverage around, you don't want to waste time searching through endless options. That's why we put together a list of some of the best options for workers' comp in South Carolina for you. 

Get started by checking out these top-quality insurance companies:

• Progressive: Progressive has been around for decades and has an excellent financial strength rating from AM Best. The carrier also offers 24/7/365 customer service.
• The Hanover: The Hanover got its start way back in 1852, and has excellent AM Best and Better Business Bureau (BBB) ratings. The insurance company also offers 24/7 claims reporting. 
• Nationwide: Nationwide is also a longstanding carrier with an excellent reputation thanks to its excellent BBB and AM Best ratings. The carrier also offers 24/7 claims support. 
• Encova: Encova also has excellent financial strength ratings and BBB ratings. The carrier also offers 24/7 claims reporting.

A South Carolina independent insurance agent can help you find the workers' comp your business needs from one of these top-rated local carriers.

Top Workers' Compensation Insurance Companies	Star Rating
Progressive
The Hanover Insurance Group
Nationwide
Encova

FAQs: Workers' Compensation in South Carolina