Businesses in North Charleston, South Carolina, must pay for certain types of commercial insurance, including workers' compensation insurance. If your employee becomes ill or is injured on the job, your business is legally liable for their medical bills and related damages.
Worker's compensation insurance coverage helps your employees access the help they need to recover while keeping your business safe from liability lawsuits related to employee injuries.
Workers' compensation insurance pays no matter who is at fault. This state-mandated insurance isn't optional, but you can choose an insurer that offers a low premium.
An independent agent can help you start saving money on your workers' compensation insurance premiums right away.
What Are the Basics of Workers' Compensation Laws in SC?
If you own a business in South Carolina, you must cover your employees with workers' compensation insurance. In this state, the employer must pay 100% of the workers' compensation insurance premium.
Workers' compensation insurance premiums may seem like an optional expense, especially during a time when businesses are trying to save as much money as possible. Skipping coverage could trigger steep fines in South Carolina, though. Not having state-mandated workers' compensation insurance also opens your company up to expensive liability lawsuits.
What Does Workers' Compensation Cover in North Charleston, SC?
Your workers' compensation insurance coverage policy pays for your employee's medical bills if they are injured or become ill on the job. It also covers wage replacement if they can't return to work right away. Employees with severe injuries may require disability coverage, which workers' compensation also provides.
If the accident results in the death of your employee, workers' compensation insurance also pays a death benefit to your employee's family.
South Carolina workers' compensation insurance provides an important layer of financial protection to all businesses, even if your employees don't have a high statistical risk of being involved in an accident.
Who Does Workers' Compensation Cover in North Charleston, SC?
Employees of South Carolina businesses must have workers' compensation insurance coverage according to state law.
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
How Much Does South Carolina Workers' Comp Cost?
A company's workers' compensation insurance premiums depend on a few key factors:
- NCCI Industry Classification Code
- Total annual payroll amount
- Workers' compensation insurance claims history
Each job title at your company has its own classification code that helps underwriters categorize jobs according to the risk of injury or illness.
It's crucial for each of your employees to have the right job classification code, so you don't end up paying unnecessarily high workers' compensation insurance premiums. Accurately describing each employees' day-to-day duties is key when it comes to getting the correct job classification.
If you've had workers' compensation claims in the past, you may have higher premiums. Underwriters assess your claims history as a way to determine the ongoing risk that you'll file a claim in the future.
South Carolina Workers’ Compensation Base Rates
The National Council of Compensation Insurance uses risk ratings and job classification codes to determine the base rate for a number of common job titles in South Carolina.
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
Your agent will be in contact with your insurer to help them understand your company's safety practices and management policies as they relate to on-the-job safety. When you use an insurance rate finder on the internet, you won't get that level of personalized service. While it may be easier to buy your workers' compensation through an online provider of simple policies, you could end up paying a lot more than you would if you used a local North Charleston agent.
How Experience Rating Affects Workers' Compensation Costs
Your company may have an experience modification rate (EMR) if you pay more than $4,500 on average each year for workers' compensation insurance or if your premium was more than $9,000 last year.
Companies with higher EMRs usually pay more for workers' compensation coverage. Accidents that lead to workers' compensation claims at your business could negatively affect your EMR for up to three years.
Your agent can help you understand your EMR and find an insurer that will work with you no matter your rating.
How to Get Workers' Compensation Insurance Discounts
You'll get every possible discount when you consult a North Charleston independent insurance agent. They'll evaluate your business, check your ratings, and suggest ways that you could save money on your workers' compensation insurance premiums.
Your agent can help you get a better rate across all your business insurance policies. Online insurers offer "average" rates to lure in subscribers, but you may pay too much for coverage you don't even need.
In South Carolina, sole proprietors, partners, and members of an LLC aren't legally required to have workers' compensation coverage. Your corporate officers can also choose to exclude themselves from the policy.
Your agent will walk you through all the possible discounts and how you can get the lowest possible rates on this vital policy.
Most Common Workers' Compensation Claims in SC
Workers in South Carolina are at the highest statistical risk of trip and fall and slip and fall injuries. Brain injuries, repetitive motion injuries, occupational illness, and chemical exposure are responsible for the rest of the bulk of workers' compensation claims in the area.
Of course, each employer has their own individual risks, which is why it's essential to work one-on-one with an independent agent who understands your business.
Many work-related injuries are 100% preventable. Your agent can talk with you about which safety practices tend to do the most good for your type of business. They can also help you make sure your insurer understands the efforts you make when it comes to providing a safe working environment for your employees.
Even if you do everything in your power to help your workers avoid being injured, accidents still happen. That's when it's crucial to have the right type of workers' compensation insurance in place backed by a reputable insurance company.
Where Can You Purchase Coverage?
Most North Charleston companies can get the state-mandated workers' compensation coverage they need from a commercial insurance company licensed to write workers' compensation insurance in South Carolina.
Use a local agent to find the right policy and provider, instead of trusting an internet search engine to find a company for you that may not be licensed to provide coverage in your state.
You may be required to get coverage from a south Carolina assigned risk program. Your agent can help you go through the National Council on Compensation Insurance (NCCI) to get the state-mandated coverage you need.
How an Independent Agent Can Help
Avoid risking your company's future financial health by adhering to South Carolinas' workers' compensation laws. Your agent can help you save money while staying in compliance with the guidelines.
Let a North Charleston independent agent help you find the coverage you need with the lowest possible premiums. Contact an agent today to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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