Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
South Carolina generally requires coverage if you regularly employ four or more people. Part-time workers and family members count. The Workers' Compensation Commission lists specific exceptions, such as some farm work and businesses with very small yearly payroll. Being a nonprofit is not an exception on its own. Check the exact exception before you rely on it.
Owners, contractors, and exceptions
Paying someone on a 1099 form does not settle whether they are an employee. The Commission looks at who controls the work, who provides the tools, how the person is paid, and who can fire them. Contractor and subcontractor duties need their own review. The Commission does not give out a certificate saying a business is exempt, so keep a record of why you made your coverage decision.
If an employee is injured
Workers should tell a supervisor, manager, or other employer contact quickly. The Commission warns that not reporting within 90 days may block a claim. Send the injury to your insurer and share treatment, wage, and time-off details. If a worker needs to file a claim or settle a dispute, use the Commission's current claim resources. Telling the employer is not the whole claim process.
Operating without coverage
Under South Carolina law (S.C. Code §42-5-40), an employer without required coverage can be fined $1 per employee per day, but not less than $10 or more than $100 per day. You also still owe benefits or damages, and you lose the usual legal defenses. Refusing on purpose is a misdemeanor, with a fine of $100 to $1,000, 30 days to six months in jail, or both. Employers with yearly payroll under $3,000 are among those exempt.
How to arrange coverage
Buy a policy from a licensed insurer, or ask about the state's backup plan for hard-to-place businesses, which NCCI runs. If you chose coverage before, or later drop below four workers, check the Commission's steps for withdrawing before you cancel. A smaller staff does not automatically end coverage you chose.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to South Carolina’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,189.94 a week
- Applies to
- Accidents on or after January 1, 2026
Check a contractor’s coverage
The Commission's Coverage Division lets you verify an employer's coverage online.
Owner exemptions and elections
Owner choices are usually made through your insurance policy. Ask your insurer which owners are included or left out, and get the answer in writing.
Frequently asked questions
Is workers' comp required in South Carolina?
Generally yes once a business regularly employs four or more people, counting part-time workers and family members. Businesses with annual payroll under $3,000 and certain agricultural employers are among the exceptions.
Do business owners need workers' comp in South Carolina?
Paying someone on a 1099 does not make them a contractor. The Commission looks at who controls the work, supplies equipment, sets pay, and can fire the worker.
How long does an employee have to report a work injury in South Carolina?
Employees should tell a supervisor quickly. Failing to report within 90 days may disqualify the claim.
What happens if a South Carolina business doesn't have workers' comp?
South Carolina charges $1 per employee per day without coverage, with a $10 minimum and $100 maximum per day. Refusing on purpose is a misdemeanor with a fine up to $1,000 and up to six months in jail.
How do I get workers' comp insurance in South Carolina?
Buy from a licensed insurer or the backup plan run by NCCI for hard-to-place businesses. If you voluntarily bought coverage, file Form 38 before dropping it.
How much does workers' comp cost in South Carolina?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in South Carolina, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
South Carolina WCC: employer FAQsSouth Carolina WCC: injured-worker FAQsSouth Carolina Code: Title 42, Chapter 5This summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.