South CarolinaWorkers' Compensation Insurance

The South Carolina Workers’ Compensation Commission assigns each kind of job a base rate for workers' compensation coverage. Insurance companies must use these base rates when calculating costs, but they are permitted to raise or lower their rates up to 25% through policy debits and credits. They may even offer additional discounts and incentives.

Let's look at the cost ranges for a few different kinds of jobs in South Carolina. These are the rates employers will pay for every $100 of employee payroll:

• Landscapers:  $4.41 to $11.84
• Plumbers:  $2.45 to $6.58
• Roofing contractors:  $18.12 to $48.63
• Retail store workers:  $1.20 to $3.22
• Clerical workers:  $0.14 to $0.38
• Restaurant workers:  $1.10 to $2.95

As you can see, workers’ comp rates are significantly higher for jobs with an increased risk of employee injuries (like roofers) than for low-risk occupations (like office workers). Companies with a good safety rating will pay rates at the lower end of the price range, while companies with a high rate of employee injuries will pay higher rates.

The quoted cost for your business will be based on:

• The number of employees you have
• How much your employees are paid
• The types of jobs they do
• Your company's history of accidents and workers’ compensation claims

In South Carolina, all employers who have four or more full-time or part-time workers are required by law to carry workers’ compensation insurance.

There are a few exceptions. In South Carolina, it is not necessary to purchase coverage for:

• Sole proprietors, LLC members, and partners (though you may include these workers in your policy if you wish to)
• Agricultural employees
• Railroad/railway workers
• Certain commission-paid real estate salespeople
• Textile Hall Corporation employees

Additionally, employers whose annual payroll during the previous year was less than $3,000 are exempt from the requirement to purchase coverage, regardless of the number of workers they employ.

Workers' compensation insurance can protect your business against financial losses and potential lawsuits by ensuring that employees who are hurt on the job receive the medical benefits and compensation for lost wages they deserve. 

This insurance can cover traumatic injuries, repetitive stress injuries, overexertion injuries, and occupational illnesses.

Workers' compensation insurance in South Carolina provides injured employees with:

• Full coverage for all necessary medical treatment.
• Full coverage for related medical expenses like hospital stays, ambulance services, prescription medications, physical therapy, chiropractic treatment, and supplies like crutches and slings.
• Reimbursement for miles driven to medical appointments, physical therapy, and other necessary treatment facilities if the round trip is more than 10 miles.
• Disability pay if the employee must take more than seven days off work to recuperate.
• Coverage for job retraining if the employee is unable to return to their previous job due to their injury.
• Death benefits, including up to $12,000 in burial expenses and compensation to the employee's spouse and dependents for up to 500 weeks.

As with any insurance coverage, workers' comp has some exclusions. You can expect your workers’ compensation insurance company to deny claims for:

• Employee injuries sustained outside of work
• Accidents that occurred while the injured employee was intoxicated or under the influence of illegal drugs
• Intentional and self-inflicted injuries
• Injuries that occurred while the employee was committing a serious crime
• Claims for pain and suffering

An independent insurance agent can further explain what your workers' compensation insurance policy covers and excludes in South Carolina.

If a prospective client asks you for proof of workers' compensation coverage, you can present them with a certificate of insurance. This certificate is a single-page document that provides information about your coverage, including details like:

• Name and address of the insured
• Name of the insurance company 
• All relevant policy numbers
• Effective date and expiration date for each policy listed

You will be issued this certificate by your insurance company when you purchase or renew your policy. 

Alternatively, prospective clients can obtain proof of coverage through an online look-up at the SC Workers' Compensation Commission website.

Independent insurance agents make it easy to find the right workers’ comp coverage because they do the comparison shopping for you. These agents cut the jargon and clarify the fine print, so you know exactly what you’re getting no matter what kinds of policies you are purchasing for your business.

No business is too small to benefit from the help of an independent agent. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

No. Workers' compensation benefits are not considered taxable income.