Do I need workers compensation insurance?

Workers' Compensation Insurance Requirements in South Carolina

When starting a business in South Carolina, understanding workers' compensation insurance obligations is essential for compliance and protecting your workforce.

Who Must Carry Workers' Compensation Insurance?

• Employers with Four or More Employees: South Carolina law requires businesses with four or more employees to carry workers' compensation insurance.
• Construction Industry: If you operate in the construction sector, the threshold lowers to just one employee, meaning you must have coverage even if you have only one worker.
• Exemptions: Sole proprietors and partners are generally exempt unless they choose to be covered voluntarily.

Operational Considerations

• Employee Classification: Properly classify workers as employees or independent contractors since coverage requirements apply only to employees.
• Insurance Providers: Obtain workers' compensation insurance through a licensed South Carolina insurer or the state workers' compensation commission.
• Recordkeeping: Maintain accurate payroll and injury records to support compliance and claims processing.
• Reporting Requirements: Report workplace injuries promptly as required by state regulations to avoid penalties.

As of 2026

These requirements may change, so verify current obligations with the South Carolina Workers' Compensation Commission or a qualified insurance advisor before finalizing your coverage.