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In nearly every U.S. state, employers are required by law to carry workers’ compensation insurance. Since laws surrounding coverage are written at the state level, each state has different rules and requirements.
Workers’ compensation is one of many small business insurance types all South Carolina entrepreneurs should consider.
In this article, we’ll explain workers’ compensation laws in South Carolina—who you need to cover, who is exempt, and possible penalties for non-compliance.
How does workers’ compensation insurance in South Carolina work?
Employees in South Carolina must obtain workers’ compensation coverage if they have four or more employees. This includes part-time employees and employees who are family members of the employer.
Employers can purchase coverage through the private insurance market. If an employer has trouble finding a private provider, they can seek coverage through the state’s assigned risk program. The program is administered by the National Council on Compensation Insurance (NCCI). Large companies can also self-insure, provided they’ve been in business long enough and can prove they have substantial financial resources.
Who needs workers’ compensation insurance in South Carolina?
Employers with four or more employees must obtain coverage. However, some employees are exempt from the state’s coverage requirements:
- Casual employees
- Employees working for an employer who had a payroll of less than $3,000 during the previous calendar year
- Agricultural employees
- Railroad employees
- Real estate salespeople working for 100% commission
- Agricultural salespeople working for 100% commission
- Federal workers
As a business owner or sole proprietor, you don’t have to purchase workers’ compensation insurance for yourself. That doesn’t mean you shouldn’t get coverage. Sustaining an injury or illness while performing your work can lead to sizable hospital bills, medical costs and a lengthy recovery period. Investing in workers’ comp for yourself could save you from a brutal financial setback.
What are the penalties for not having workers’ comp in South Carolina?
If one of your employees files a claim and you don’t have proper workers’ compensation coverage, the SC Workers’ Compensation Commission will open an investigation to see who is at fault and determine if the employer should be prosecuted. Willfully forgoing coverage can result in civil and/or criminal penalties. Additionally, that employee can sue you for damages relating to the injury and potentially receive more than they would from a workers’ comp claim.
How much does workers’ comp insurance in South Carolina cost?
On average, employers in South Carolina pay $1.66 annually per $100 in covered wages.
What does workers’ comp cover?
If one of your employees is injured or becomes ill on the job, workers’ comp can cover their immediate medical expenses such as ambulance rides, emergency room visits, x-rays, surgery and prescription medications.
For example, if a kitchen employee reaches into a sink and slices their hand on a broken glass, they might require medical attention. Workers’ comp could cover the costs of their emergency room visit, stitches and pain management prescriptions.
Many work-related incidents can leave employees unable to work for several weeks or months. Workers’ comp can provide some relief for employees in the form of partial wage replacement.
If an employee breaks their foot in a work-related accident, they could end up stuck at home for multiple months. While they’re out of work, workers’ comp would cover some of their lost wages.
Some work-related injuries require long-term care such as physical therapy or pain management. Often, these injuries are more the result of repetitive workplace stress rather than a single traumatic incident. Chronic back issues for construction workers and carpal tunnel syndrome for office employees are two common examples of the types of workers who might receive ongoing care due to repetitive stress. If their claim is approved, workers’ comp can cover the costs associated with their ongoing care.
If the unthinkable happens and an employee passes away because of a workplace incident, workers’ comp can cover funeral costs and other death benefits for the deceased worker’s family or beneficiaries.