If you own a business in Columbia, Charleston, or anywhere in the Palmetto State, understanding South Carolina workers’ comp insurance isn’t optional—it’s the law. With updates under workers’ comp laws South Carolina 2025, now is the time to check your compliance and coverage.
This guide explains who needs coverage, what’s included, how much it costs, and how the South Carolina workers’ compensation claim process works—plus what to expect in penalties if you’re not prepared.
WHO NEEDS COVERAGE IN SOUTH CAROLINA?
Under South Carolina Code § 42-1-130″ or “Under Title 42, Chapter 1 of South Carolina law, the South Carolina employer workers’ comp requirements say that any business with four or more employees must carry workers’ compensation insurance. This includes full-time and part-time workers.
Exemptions:
- Agricultural workers (in limited situations)
- Railroad employees covered by federal programs
- Temporary or “casual” workers
- Sole proprietors and business partners (can opt in voluntarily)
- Businesses with annual payroll under $3,000 in the previous calendar year
Even small business workers’ comp South Carolina rules apply when you reach four employees. For example, a landscaping company with three laborers and an office assistant must be insured.
Industry-Specific Rules:
- Construction: Coverage is strictly enforced. Construction workers’ comp South Carolina is non-negotiable due to high injury rates.
- Healthcare: High exposure to injury and illness requires full compliance.
- Agriculture: May be exempt if under four employees, but many operations must still comply.
KEY BENEFITS FOR EMPLOYERS AND WORKERS
The goal of workers’ compensation benefits South Carolina is to ensure injured employees get the care they need—while protecting employers from lawsuits.
Core Benefits Include:
- Medical Treatment: Covers doctor visits, hospital stays, surgery, and prescriptions
- Wage Replacement: Employees receive 66⅔% of average weekly wages, up to $1,134.43 per week in 2025
- Vocational Rehabilitation: Retraining and job placement support if the worker can’t return to their old role
- Death Benefits: Financial support for dependents, plus funeral costs
- Mileage Reimbursement: As of 2025, $0.70 per mile for travel to medical appointments
If a business can’t get coverage from private carriers, South Carolina’s Assigned Risk Pool—run by NCCI—offers a last-resort option. Large companies may apply for self-insurance if they meet financial requirements.
COMMON CLAIMS & STATEWIDE RISKS
The South Carolina workers’ compensation claim process starts with injury—and many claims come from everyday workplace tasks.
Common Claims:
- Overexertion and lifting injuries: In warehouses, retail, and factories
- Slips and falls: Wet floors in restaurants, cluttered construction zones
- Caught-in machinery: In rural textile plants and small manufacturing sites
- Vehicle accidents: Delivery drivers and logistics teams on state roads
- Heat-related illnesses: Roofers and outdoor crews working in summer humidity
Small businesses especially struggle if they don’t have HR teams to guide injured workers through recovery. That’s why following the claim process—and having coverage in place—is critical.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
WORKERS' COMP INSURANCE COSTS SOUTH CAROLINA
Your premium depends on risk level, payroll, and claims history. The workers’ comp insurance costs uses average rate per $100 in payroll, but this varies.
What Affects Your Premium:
- Industry Type: High-risk jobs like roofing cost more
- Claims History: A single large claim can raise your premium at renewal
- Safety Programs: Training and PPE protocols may earn discounts
- Payroll Size: Larger employers may get lower rates per dollar due to volume
Compared to other states, South Carolina sits in the middle. Georgia may offer slightly lower rates due to broader exemptions. North Carolina enforces strict audits that can raise admin costs.
South Carolina Workers' Compensation Claim Process & Legal Responsibilities
The South Carolina WCC guidelines outline exactly how claims must be handled, with specific deadlines for both employees and employers.
Key Steps:
- Employee Notification: The employee reports the injury to their employer within 90 days.
- Employer Filing: The employer must notify their insurance carrier after learning of the injury within 10 days as required by state law.
- Formal Claim Filing: The employee submits Form 50 to the Commission within 2 years.
- Employer Responsibilities: Must notify insurer and coordinate care.
- Disputes: Resolved through WCC mediation or a formal hearing.
- Mileage: Workers are reimbursed for medical travel, retroactively, with receipts.
Following these precise deadlines is critical for maintaining compliance and ensuring injured workers receive timely benefits.
SOUTH CAROLINA WORKERS' COMP COMPLIANCE PENALTIES
Failure to comply with workers’ comp laws can cost you.
Penalties Include:
- Civil Fines
- Paying full medical costs and back wages out-of-pocket
- Regulatory action from the SC Workers’ Compensation Commission
- Public enforcement including audits and shutdown orders
The South Carolina workers’ comp compliance penalties are steep for a reason—to protect workers and reduce public healthcare burdens.
LEGAL UPDATES FOR 2025
- New Maximum Benefit: $1,134.43 per week as of January 2025
- Mileage Reimbursement: Increased to $0.70 per mile
- Modernized Claims Handling: More cases resolved through mediation to reduce delays
WCC Enforcement: More audits are targeting small firms that use cash-only payrolls or delay reporting
BOTTOM LINE: STAY COMPLIANT, STAY PROTECTED
Workers’ comp laws South Carolina 2025 have increased responsibilities—and failure to follow them could lead to lawsuits, fines, or lost business licenses.
Whether you’re a small team of five or a 200-employee construction firm, the safest move is to get insured, stay compliant, and build a safer workplace.
Don’t wait until you’re fined—get covered now.
Call 855-718-7552 to speak with a licensed advisor today.
