In South Carolina, workers’ compensation policies can be purchased through a commercial provider, through the NCCI-administered assigned risk fund, or waived because they self-insure.
The most cost-effective way to obtain a policy is by comparing rates from a few of the commercial insurance companies that offer this coverage.
These companies must base their cost for coverage on the rates designated for each job classification as regulated by the South Carolina Workers’ Compensation Commission. Because commercial providers are permitted by the state to offer policy discounts of up to 25%, comparing rates can potentially save you money.
NCCI-Administered Assigned Risk Fund
Some businesses present a high risk that most insurance companies are unwilling to underwrite. These businesses may find it difficult or impossible to obtain coverage through a commercial provider. In this case, they would need to purchase an NCCI-administered assigned risk policy through any of the various insurance carriers that offer this specialized coverage.
If your business falls in this category, a local independent agent can help you obtain guaranteed coverage through an approved assigned-risk carrier.
South Carolina businesses are given the option to self-insure. To do so, a company must demonstrate the financial strength necessary to cover the costs associated with workplace injuries, and must obtain approval from the South Carolina Self-Insurance Division.
Be aware that if your company opts to self-insure, you will need to provide an audited GAAP financial statement annually, and you will be required to pay the state a self-insurance tax of 2.5% of your total paid expenses for the program.