South Carolina workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a South Carolina employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant in 2026.
Workers’ compensation insurance helps protect employees by covering benefits after a work-related injury or illness, and it helps protect employers by limiting exposure to certain lawsuits and major out-of-pocket costs when workplace incidents happen. South Carolina’s program is administered by the South Carolina Workers’ Compensation Commission (SCWCC).
Under South Carolina law, most businesses that regularly employ four (4) or more employees in the state are required to maintain workers’ compensation coverage. This typically includes full-time, part-time, and family members who work for the business. For the SCWCC’s official guidance, see.
Important note for construction and contracting: certain contractor/subcontractor situations can create added responsibility and compliance risk. SCWCC coverage/compliance guidance.
Yes—South Carolina law lists specific exemptions. Common exemptions include casual employees, certain agricultural employees, railroad/railway express employments, certain commission-based real estate salespersons (meeting statutory conditions), and federal employees, among others. Official statute reference (S.C. Code § 42-1-360).
SCWCC plain-language summary (also notes businesses employing fewer than 4 employees or with annual payroll under $3,000).
Because exemptions depend on facts and classification, it’s smart to verify using the SCWCC resources above, especially before treating someone as exempt.
Workers’ compensation benefits can include:
Medical treatment related to the workplace injury/illness
Wage-replacement benefits when an employee is disabled from work
Permanent disability benefits in qualifying cases
Death benefits for eligible dependents in fatal cases
South Carolina has a statutory waiting period for disability wage benefits: no compensation is allowed for the first seven (7) calendar days of disability, but if the disability lasts more than fourteen (14) days, compensation is allowed from the date disability began (S.C. Code § 42-9-200).
South Carolina employers generally have these options:
Buy a policy from a licensed private insurer (typical route for most employers)
Use the assigned risk (market of last resort) process if you can’t obtain coverage voluntarily (South Carolina’s plan is administered by NCCI):
Apply to self-insure (if eligible) through the SCWCC Self-Insurance Division.
If you plan to self-insure, SCWCC states you must provide three years’ audited GAAP financial statements with the application, and approved self-insurers must continue to meet ongoing requirements.
Failing to secure required workers’ compensation coverage can trigger daily fines and significant legal exposure. South Carolina law provides for fines of not less than $10 nor more than $100 per day for refusal/neglect to secure compensation (and the employer may be liable to an employee either for compensation under the Act or at law) (S.C. Code § 42-5-40).
Willful refusal can be a misdemeanor, with penalties that can include a fine and/or imprisonment (S.C. Code § 42-5-45).
Employee notice deadline (important): South Carolina generally requires notice to the employer within 90 days of the accident (subject to statutory exceptions) (S.C. Code § 42-15-20).
Time limit to file a claim with the Commission: A claim is generally barred unless filed within two (2) years after an accident (with special rules for death, occupational disease, and repetitive trauma) (S.C. Code § 42-15-40).
Employer reporting/forms: The SCWCC’s Form 12A (First Report of Injury or Illness) is the standard reporting form. Official forms page.
Direct Form 12A PDF: https://wcc.sc.gov/sites/wcc/files/Documents/Header/Forms/Form12A.pdf
If required forms/reports are not filed properly, the Commission may assess fines (SCWCC fines list includes $200 for Form 12A issues).
South Carolina rules can vary depending on the situation and the claim’s handling. For employer-facing guidance and compliance resources, start with SCWCC’s official materials:
South Carolina Workers’ Compensation Commission (SCWCC)
Employer FAQs (coverage basics + exemptions).
Coverage & Compliance FAQs (contractor/subcontractor guidance).
Forms (including Form 12A).
Fines and penalties (form-specific fines, appeal contacts).
South Carolina Code of Laws – Title 42 (Workers’ Compensation).
Most South Carolina employers who meet the four-employee threshold must carry workers’ compensation insurance. Keeping coverage active and following SCWCC reporting/form rules helps you avoid daily fines, legal exposure, and operational disruption. If you want help getting set up or staying compliant in 2026, Beyond is here to support you.
