South Carolina workers' compensation insurance: Your ultimate guide
Everything to know about workers’ compensation for
South Carolina
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
South Carolina
's workers' comp laws?
South Carolina is a state full of charm and a robust variety of businesses across the state. From Charleston to the Lowcountry, the great Palmetto State has much to offer and a vibrant small business scene.
If you’re a business owner in South Carolina, it’s crucial to protect yourself, your business and your employees with workers’ compensation insurance.
What is workers' compensation?
Workers' compensation is a state-mandated insurance program for employers with four or more employees. It is designed to provide financial protection for employees who suffer work-related injuries or illnesses\.
Without workers’ compensation, the cost of an injured or ill employee’s medical treatment could become the responsibility of your business.
South Carolina workers' compensation laws
In South Carolina, workers' compensation is governed by the South Carolina Workers' Compensation Act. This law requires employers with four or more employees to be covered by an active workers’ compensation insurance policy.
Workers’ comp coverage can be obtained through a partner like EverPeak. South Carolina’s Workers’ Compensation Commission can approve self-insured requests if businesses:
- Meet a certain financial standard and
- Provide three years of audited financial statements
South Carolina’s assigned risk program — administered by the National Council on Compensation Insurance (NCCI) — can also provide workers’ comp coverage.
Employees can verify online if their employer has coverage through the state’s online search tool and can also use South Carolina’s common employer name variations for reference.
Who is covered and exempt from
South Carolina
workers' comp?
Who is covered?
Policies include protection for full-time and part-time workers, seasonal and temporary employees.
Exemptions from South Carolina workers’ compensation include:
- Casual employees
- Businesses employing less than four employees or businesses with an annual payroll of less than $3,000
- Agricultural employees; a state and county fair association; railroads and railway express companies; and federal employees
- Owner-operator drivers
- Certain commission-paid real estate agents who meet the specific threshold requirements
Nonprofits do not have specific exemptions in the state and require coverage.
Covered injuries and illnesses
Workers' compensation covers a wide range of work-related injuries and illnesses. This includes physical injuries resulting from accidents, occupational diseases developed over time due to job conditions, and psychological injuries resulting from workplace trauma.
Benefits provided
South Carolina workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Permanent disability
These benefits include:
- Work-related accidents, injuries and/or illnesses
- Missed wages resulting from time away from work for recovery
- Ongoing care costs for work-related injuries or illnesses
- Funeral costs for fatal work-related illness or accidents
- Permanent disability benefits
Under the South Carolina Workers’ Compensation Act, “there is no recovery for pain and suffering”.
Benefits received rely on many factors, such as the employee’s:
- Average weekly wages received from all employers before the injury,
- Injury severity,
- Ability to continue working.
South Carolina Workers’ compensation rates
According to South Carolina law, the maximum weekly compensation rate is equal to 66⅔% of a person’s average weekly wage and cannot exceed the average weekly wage for the previous year.
More information on annual South Carolina workers’ compensation rates can be found here.
How much does workers’ comp cost in
South Carolina
?
How do you file a workers’ compensation claim in
South Carolina
?
Filing a workers' compensation claim
In the event of a work-related injury or illness, employees must promptly notify their employer and seek medical attention.
In South Carolina, workers have 90 days from the day of the accident to report an injury to their employer and up to two years for an employer to file a workers’ compensation claim.
Filing a claim is the responsibility of the employer in the case of a workplace-related injury or illness.
Employers are responsible for reporting the incident to their workers' compensation insurance carrier. The injured employee should complete the necessary forms and provide supporting documentation to initiate the claims process.
Choosing a healthcare provider
If an employer’s insurance accepts your claim, the injured worker should start receiving benefits immediately.
Employers in South Carolina have the right to select a healthcare provider or panel of providers for their workers' compensation program.
Employees must seek medical treatment from these designated providers to ensure coverage.
Compensation for missed work
If an employee is out-of-work:
- Less than seven days: They are not eligible for temporary total disability payments.
- More than seven, but less than fourteen days: They are eligible to for lost time benefits beginning on the eighth day.
- More than fourteen days: They are eligible for benefits retroactive to the first day they were unable to work.
- A prolonged absence: The adjuster will establish a running award (automatic generation of weekly benefit checks, payable directly to the claimant).
Resolving disputes
If there is a dispute regarding a workers' compensation claim, the South Carolina Workers' Compensation Commission serves as the administrative body responsible for resolving these disputes. This involves mediation, hearings, and potential appeals.
Selecting a workers' compensation insurance provider
Insurance requirements for employers
In most cases, employers in South Carolina with four or more employees must carry workers' compensation insurance or qualify for self-insurance, depending on their size and industry. Compliance with these requirements is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
It's advisable to request multiple quotes and compare the offerings before making a decision.
Covering your business and employees with a trusted insurance partner—like EverPeak—brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.