Whether you run a small shop in Columbia or manage a coastal business near Myrtle Beach, general liability insurance in South Carolina provides critical protection. It protects your business from unexpected accidents, lawsuits, and financial loss—even when the law doesn’t require it.
This guide explains who needs it, what it covers, costs and coverage factors, and how to handle claims in South Carolina.
Who Needs General Liability Coverage in South Carolina?
While South Carolina law (Title 38) doesn’t mandate general liability insurance for all businesses, many local governments, licensing boards, and contracts do. If you’re in one of these categories, coverage may be essential:
- Contractors: Cities like Charleston may require contractor general liability insurance before issuing permits or as part of specific projects. For example, the City of Charleston requires general liability coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 in aggregate for contractors working on city projects.
- Licensed Professionals: Some licensing boards may require proof of liability insurance for license approval.
- Public Project Bidders: Government-funded contracts may require coverage as part of eligibility.
- Fire Sprinkler Contractors: Must carry at least $100,000 in general liability coverage as required by the South Carolina Contractor’s Licensing Board.
Even if you’re a sole proprietor or freelancer working from home, you’re still vulnerable. A delivery person slipping on your steps or a client claiming property damage could lead to lawsuits. Without small business liability insurance, South Carolina owners risk paying damages out of pocket.
What General Liability Insurance Covers
This type of insurance protects your business from third-party risks such as bodily injuries, property damage, and legal claims. Here’s what most policies include:
- Bodily Injury: If a customer trips at your store, medical costs and legal defense are covered.
- Property Damage: Covers repairs if your work damages a client’s home or belongings.
- Personal & Advertising Injury: Defends against claims of libel, slander, or copyright infringement.
- Medical Payments: Helps pay minor injury bills, regardless of who was at fault.
- Legal Defense & Settlements: Covers attorney fees, court costs, and settlement payments—even if you win the case.
- Completed Operations & Product Liability: Critical for contractors and product-based businesses after work is finished or goods are sold.
If you offer professional advice or consulting, you may also need errors and omissions (E&O) coverage. That’s separate from general liability, which only applies to physical incidents and property claims.
Businesses often confuse general liability and workers’ comp. This guide on general liability vs. workers’ compensation explains the key differences and how both coverages work together to protect your company.
Common Risks and Claims in South Carolina
Every business faces different risks, and South Carolina’s climate, tourism, and agriculture industries present unique challenges. Here are some common claim types:
- Slip-and-Falls: Especially common in Charleston and Columbia during busy tourist seasons. Wet floors and cracked sidewalks can lead to lawsuits.
- Storm-Related Property Damage: Coastal businesses often face claims after hurricanes or tropical storms.
- Restaurant Claims: Food contamination, burn injuries, and kitchen accidents are major concerns. Business insurance for restaurant owners should include liability coverage.
- Farm and Equipment Hazards: If a customer is injured on your property or by machinery, significant claims can result.
- Retail Incidents: Stores in malls or shopping centers deal with claims tied to foot traffic. Commercial insurance for retail businesses should cover premises liability and product risks.
Without coverage, these issues could shut down operations or impact personal assets.
General Liability Insurance Costs and Coverage Factors
General liability insurance costs vary depending on location, industry, business size, and past claim history. Several factors affect your rates:
Key Cost Factors Include:
Location: Different areas may have varying risk profiles
Industry Type: Contractors and restaurants typically pay more than office-based businesses
Deductibles: Lower deductibles mean higher premiums but less out-of-pocket expense during a claim
Claim History: Previous incidents can increase your rate
Policy Bundling: Pairing liability with property or auto coverage often provides discounts
Coverage Considerations
When determining appropriate coverage amounts, businesses should consider:
- Contractual requirements from clients or landlords
- Industry-specific risks and exposure levels
- State and local regulatory requirements
- Asset protection needs
South Carolina businesses with four or more employees are required to carry workers’ compensation insurance, which is separate from general liability coverage.
How the Claims Process Works in South Carolina
If something goes wrong—such as a customer falling in your shop or an employee damaging client property—your next steps are crucial:
- Report the incident according to your policy requirements
- Document the event with photos, videos, and witness statements
- File a claim with your insurer
- Work with the claims adjuster during the investigation process
- Receive coverage for damages within your policy limits
Bottom Line: Don't Delay Coverage
General liability insurance isn’t just for corporations. If you’re a small shop owner, restaurant operator, or contractor in South Carolina, this policy protects everything you’ve worked to build.
Here’s what smart business owners do next:
- Review all contracts and permits to identify GL requirements
- Bundle policies to potentially reduce costs and simplify renewals
- Compare coverage options based on your location and risk factors
- Consider working with an insurance professional to ensure adequate protection
Need help choosing the right plan? Call our experts at 855-718-7552
