Answers to common questions about SC workers comp requirements, claims, and coverage
If your business regularly employs four or more workers in South Carolina, including part-time employees and family members, you are legally required to carry workers compensation insurance under SC Code 42-1-360. The $3,000 annual payroll minimum also applies. Businesses below both thresholds are exempt but can voluntarily purchase coverage.
The South Carolina Workers' Compensation Commission can impose fines of $100 per day of non-compliance with a minimum fine of $1,000. Beyond fines, uninsured employers face personal liability for the full cost of employee injuries, including medical bills, lost wages, and permanent disability payments. Willful non-compliance can result in criminal charges.
The injured employee must notify their employer within 90 days of the injury or discovery of an occupational disease. The employer then reports the claim to their workers comp carrier. The carrier assigns a claims adjuster who authorizes medical treatment and determines benefit eligibility.
South Carolina is a no-fault system. The employee does not need to prove the employer was negligent. If the injury occurred during the course and scope of employment, benefits are available. Employers cannot retaliate against employees for filing workers comp claims under SC law.
Sole proprietors and partners are not required to carry workers comp on themselves, but they can elect coverage. Many Greenville contractors choose to include themselves because general contractors require a COI from every sub on the job site. A ghost policy with elected coverage gives you both the certificate and personal injury protection.
NCCI calculates your experience modification rate (EMR or MOD) by comparing your actual claims history against the expected losses for your class code. An EMR of 1.0 is average. Below 1.0 earns a premium discount. Above 1.0 results in a surcharge. The calculation uses three years of data, excluding the most recent year.
Greenville contractors with a high EMR often lose bidding opportunities because project owners set maximum EMR thresholds (typically 1.0 or 1.2) as a qualification requirement.
A ghost policy is a workers compensation policy carried by a sole proprietor or partnership with no employees on payroll. The policy exists to provide a certificate of insurance (COI) that general contractors require from every subcontractor on a job site. Without a COI, the general contractor's workers comp carrier charges back the sub's payroll exposure to the GC's policy at audit.
Ghost policies in South Carolina carry a minimum premium set by the carrier. The sole proprietor can elect to include themselves for personal injury coverage or exclude themselves and maintain the policy strictly for certification. The Morgano Agency writes ghost policies for subcontractors across Greenville County.
SC Code Title 42 governs the state's workers compensation system. Key provisions include the four-employee coverage threshold (Section 42-1-360), the 90-day injury notification requirement, the no-fault benefit structure, and anti-retaliation protections for employees who file claims. The SC Workers' Compensation Commission administers the system, hears disputes, and approves settlements.
South Carolina does not allow employees to sue their employer for workplace injuries covered under workers comp. The exclusive remedy doctrine means the workers comp system is the sole source of recovery, which protects employers from costly litigation while guaranteeing benefits to injured workers.
If you are injured at work in Greenville, report the injury to your employer immediately. You have 90 days under SC law, but prompt reporting speeds up claim processing and medical authorization. Your employer should direct you to an authorized medical provider. Workers compensation covers all reasonable medical treatment related to the workplace injury, including emergency care, surgery, physical therapy, prescriptions, and mileage to appointments.
You are entitled to wage replacement benefits if you miss more than seven days of work. Benefits are calculated at two-thirds of your average weekly wage, subject to the state maximum. Your employer cannot fire you for filing a workers comp claim.
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