Workers Compensation Insurance Requirements in South Carolina
A restaurant owner in Greenville asked me last year if he really needed workers comp. He had five employees. He figured if someone got hurt, his general liability policy would handle it.
It would not. And without workers compensation coverage, he was breaking state law without even knowing it.
South Carolina has pretty clear rules about workers comp. If you are a business owner in the Greenville area, here is what you need to know.
Who Has to Carry Workers Comp in South Carolina
Under SC Code Section 42-1-360, any business with four or more employees is required to carry workers compensation insurance. That includes full-time, part-time, and seasonal workers. It does not matter what industry you are in. If you hit that four-employee threshold, you need coverage.
Some business owners try to get around this by classifying workers as independent contractors. The state does not look kindly on that. If someone functions like an employee, South Carolina may treat them as one regardless of what your paperwork says.
What Workers Comp Actually Covers
Workers compensation pays for three main things when an employee gets hurt or sick because of their job.
- Medical expenses. Doctor visits, surgery, physical therapy, prescriptions. All of it. The employee pays nothing out of pocket for treatment related to a workplace injury.
- Lost wages. If the injury keeps someone from working, workers comp pays a portion of their regular wages while they recover. In South Carolina, that is typically two-thirds of their average weekly wage, up to a state maximum.
- Death benefits. If an employee dies from a workplace injury or illness, their dependents receive benefits. Nobody wants to think about this one, but it matters.
What Happens If You Do Not Have It
The South Carolina Workers Compensation Commission does not mess around with enforcement. If you are required to carry workers comp and do not have it, you can face fines, criminal misdemeanor charges, and personal liability for any workplace injuries.
That last part is the big one. Without workers comp, an injured employee can sue you directly. There is no cap on damages in a personal injury lawsuit. One serious injury could bankrupt a small business.
Greenville Industries That Need Workers Comp
Pretty much every industry in the Greenville area has workers comp exposure. But some carry more risk than others.
Construction companies, roofing contractors, and landscapers have high injury rates and pay higher premiums because of it. Restaurants and retail shops have slip-and-fall and burn risks. Manufacturing facilities along the I-85 corridor deal with heavy equipment and repetitive motion injuries. Even office-based businesses need coverage because repetitive stress injuries and falls happen in offices too.
If you run a business in Greenville with four or more people working for you, do not assume you are the exception. You are almost certainly required to have this coverage.
How to Get Workers Comp in South Carolina
You buy workers comp through a licensed insurance carrier. An independent insurance agent can shop multiple carriers to find the best rate for your industry and payroll size. Rates vary a lot depending on what kind of work your employees do, your claims history, and your safety programs.
South Carolina also allows employers to apply for self-insurance, but that is really only practical for larger companies with significant financial reserves.
The bottom line: if you have four or more employees, get workers comp. If you already have it, review your policy annually to make sure your payroll numbers and job classifications are accurate. Getting those wrong can lead to a painful premium audit.
Alexandra Moran is an insurance advisor in Greenville, SC. She writes about home, auto, life, and business insurance to help people make smarter coverage decisions.
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