South Carolina Workers' Compensation Insurance

South Carolina does not issue formal certification that a given employer is exempt from the Act, and the Commission's guidance does not set out a single automatic rule for sole proprietors, partners, LLC members, or corporate officers; coverage status typically depends on the specifics of each situation and is confirmed through the carrier or an exemption filing where applicable, such as the corporate officer exemption form the state provides. Because the rules vary by entity type and ownership share, employers should confirm current exemption or election status directly with their agent or the Commission rather than assuming a default.

An employer that refuses or neglects to secure required coverage faces a fine of $1 for each employee at the time coverage became due, plus $10 to $100 for each day the refusal or neglect continues, assessed by the Workers' Compensation Commission with rights of review and appeal (S.C. Code § 42-5-40). During that period of noncompliance, the employer also remains directly liable to an injured employee for either statutory compensation or a common-law damages claim.

South Carolina is a competitive market state rated by NCCI, so our agency can compare coverage across the many private carriers writing business here. There is no South Carolina state-run workers' comp fund; employers who can't find a voluntary carrier are placed through the NCCI-administered assigned risk plan. Because the four-employee threshold counts part-time workers and family members, a growing small business should check with an agent as soon as it's approaching that headcount rather than after the fact.