As an employer in Hilton Head, you have a legal obligation to provide your employees with a safe workplace. Workers' compensation insurance policies benefit both the employer and the injured worker by providing funds for medical bills and wage replacement after a workplace injury.
In South Carolina, there are strict laws about which employers must provide this essential coverage. When you work with a Hilton Head independent insurance agent, you'll get the benefit of their knowledge about workers' compensation laws in your area. Your agent will help you get the workers' comp policy you need at the best possible price.
Use our independent agent matching system to find a local agent and get started building the right workers' compensation insurance plan for your company today.
What Are the Basics of Workers' Compensation Laws in SC?
South Carolina employers must carry workers' compensation insurance. Whether your workers are full-time, part-time, or a statutory employee, you are subject to the state's laws.
There are a few exceptions to South Carolina's mandate that all employers provide workers' compensation insurance.
You may not have to provide coverage if:
- You have fewer than four employees (full-time or part-time)
- Subcontractors employed by your contractor are already covered under another workers' compensation plan
- Your total annual payroll during the past year for all employees was less than $3,000
- Your employees are commission-paid real estate agents
Although it may be tempting to save money by not providing workers' compensation insurance for your employees, employers who fail to adhere to South Carolina's laws could be subject to steep fines.
What Does Workers' Compensation Cover in Hilton Head, SC?
Workers' compensation insurance (workers' comp) in South Carolina is a state-regulated program that covers work-related injuries and illnesses for employees. Workers' compensation provides funds to cover necessary medical treatments and lost wages that are a direct result of the injury or illness.
It may also cover disability benefits after a severe injury or illness. If the employee dies as a result of a workplace-related injury or illness, their family receives death benefits.
Who Does Workers' Compensation Cover in Hilton Head, SC?
In South Carolina, workers' compensation insurance benefits your employees. Anyone working for a company with four or more employees should have access to the appropriate workers' compensation insurance benefits if they become ill or are injured as a result of their job.
How Much Does South Carolina Workers' Compensation Cost?
Your workers' compensation insurance premiums depend on a few key factors:
- NCCI Industry Classification Code
- Total annual payroll amount
- Workers' compensation insurance claims history
Your employees receive a classification code dependent upon the work they perform during the course of a normal business day. It's crucial to correctly represent your employees' activities so you get the right classification code.
If you have a history of making workers' compensation claims, you may pay a bit more for this type of insurance. Claims history is one way underwriters determine whether an employer provides a safe working environment for their employees.
South Carolina Workers’ Compensation Base Rates
South Carolina bases their workers’ compensation rates on the classification codes and risk ratings from the National Council of Compensation Insurance (NCCI).
An insurance company underwriter bases their quotes on the base rate range as well as information about your company's safety practices and management policies. Your agent can use their knowledge of your business to negotiate a lower insurance rate with a company's underwriters.
Here are some examples of base rate ranges per $100 of employer payroll. Rates are subject to change each year.
- 5183 Plumbing Contractors: $2.45 - $6.58
- 5551 Roofing Contractors: $18.12 - $48.63
- 7230 Package and Parcel Delivery: $10.67 - $28.64
- 7605 Alarm Installation & Repair: $1.91 - $5.13
- 8810 Clerical - Office Employee: $0.14 - 0.38
- 8832 Medical Office - Doctor, Dentist, Chiropractor, Optometrist: $0.23 - $0.62
How Experience Rating Affects Workers' Compensation Costs
An experience modification rate (EMR) provides clues about how your workers' compensation claims and safety record compare to other companies in South Carolina in your industry. Higher EMRs means you'll pay higher workers' compensation rates.
If there's an accident at your place of business, it could negatively affect your experience modification rating for up to three years.
Smaller companies won't receive an EMR. In South Carolina, you'll get an EMR if you pay a policy premium averaging $4,500 or more for more than two years, or if your premium was at least $9,000 during the prior year.
How to Get Workers' Compensation Insurance Discounts
To get the lowest possible rates, follow our independent agent's advice. They may want you to evaluate which employees you must cover according to South Carolina law. Partners, members of an LLC, and sole proprietors and excluded from coverage. Corporate officers can be covered but can choose to exclude themselves. While you must cover legally required employees, covering certain people in your company may be optional.
Your agent will also help you get the right classification code for your business. If you aren't correctly classified, you could be paying a much higher rate than necessary for your workers' compensation insurance.
Some employers may be eligible for discounts on their insurance premiums. Your agent can talk with you about whether your training programs, payroll reporting practices, or workplace safety programs could qualify you for credits on your workers' compensation policy.
Most Common Workers' Compensation Claims in SC
Your employees are statistically most at risk of slip and fall injuries and trip and fall injuries. These are the two most frequent reasons for workers' compensation claims in the state. Repetitive motion injuries, brain injuries, occupational illnesses, chemical exposure, and knee injuries make up the rest of the bulk of South Carolina workers' compensation claims.
Where Can You Purchase Coverage?
You can get the state-mandated workers' compensation insurance policy you need from a commercial insurance company with a license to write workers' compensation insurance in South Carolina. The National Council on Compensation Insurance (NCCI) also manages the state's assigned risk program, for employers who aren't eligible to purchase a policy from a private insurer.
How an Independent Agent Can Help
If you don't have the proper workers' compensation insurance, your company could be at risk of being sued for liability damage by an injured or ill employee. All South Carolina employers must provide their workers with this essential coverage.
Your Hilton Head independent insurance agent can help you find a great insurer so you can get the coverage you need to stay in compliance with South Carolina law. Contact an independent agent today to start comparing rates.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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