Is workers comp required in South Carolina?
South Carolina generally requires coverage for employers with four or more employees, with an exemption for very small total payroll. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in South Carolina
South Carolina employers buy workers comp from private insurance companies, and businesses that are hard to place can obtain coverage through the state's residual market or a state-chartered carrier where one exists.
Who sets the rules
The South Carolina Workers' Compensation Commission oversees workers comp in South Carolina. In South Carolina, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What South Carolina employers should know
- South Carolina general contractors can be held responsible for uninsured subcontractors' employees.
- Manufacturing, tourism and port-related work are common South Carolina classes.
South Carolina facts employers ask about
The South Carolina Workers' Compensation Commission administers the system. Employers with four or more employees, full- or part-time, must carry coverage. Businesses whose total annual payroll in the previous year was under $3,000 are exempt, as are some agricultural, casual and railroad employment.
South Carolina's statutory employer rule matters for contractors: a business that hires an uninsured subcontractor to perform part of its trade or business can be responsible for that subcontractor's injured workers. Requesting certificates and verifying them against the Commission's coverage records reduces that risk.
South Carolina uses NCCI classifications, and employers that cannot buy coverage in the voluntary market can obtain it through the assigned risk plan. The state's Uninsured Employers' Fund pays benefits when an employer fails to insure and then seeks reimbursement from that employer.
Coastal construction, hospitality and manufacturing are major South Carolina industries. Hotel and restaurant operators along the coast often add seasonal staff, and those part-time workers count toward the four-employee threshold, so a business can become subject to the law during its busy season.
Sources: South Carolina Workers' Compensation Commission. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
As in most states, SC premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for South Carolina employers
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South Carolina workers comp FAQ
Is workers comp required in South Carolina?
South Carolina generally requires coverage for employers with four or more employees, with an exemption for very small total payroll. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in South Carolina?
The South Carolina Workers' Compensation Commission administers the workers compensation system in South Carolina.
Can I buy South Carolina workers comp from a private insurer?
Yes. Private insurers write workers comp in South Carolina, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in South Carolina?
In South Carolina, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. As in most states, SC premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period.