South Carolina Business Insurance

Is South Carolina business insurance required by law?

Yes, some types of South Carolina business insurance are required for licensing, to work, to rent a commercial work space, to hire employees, do business driving, and more to start or grow a local small business.

Even if it’s not required by state, city or municipal law, many clients, landlords, financial lenders and vendors may require proof of business insurance coverage (called a certificate of insurance, or a COI) before they’ll do business with you.

Mandatory business insurance in South Carolina: Workers’ Compensation insurance

According to the South Carolina Workers’ Compensation Commission, businesses that regularly employ four or more employees in South Carolina are generally required to carry workers’ compensation insurance. Part-time employees and family members count toward the four-employee threshold.

There are some exceptions, including certain agricultural and casual employees, businesses with fewer than four employees and businesses with an annual payroll of less than $3,000. Other exemptions may also apply.

Contractors should pay particular attention to this insurance mandate. The Commission notes that a general contractor can be liable for workers’ compensation claims involving employees of an uninsured subcontractor, which is one reason contractors may require subcontractors to carry their own workers’ comp coverage.

Other mandatory requirements for South Carolina business insurance

Other SC small business insurance requirements can vary by profession and license. For example, some contractors must provide proof of liability insurance to obtain or renew a license. The South Carolina Contractor’s Licensing Board requires burglar and fire alarm contractors to maintain at least $100,000 in liability insurance.

Even if coverage isn’t required by South Carolina law, many small business owners could benefit from the financial protection of business insurance.

How much does South Carolina business insurance cost?

The cost of small business insurance in South Carolina depends on a number of factors, including the type of coverage your business needs and your business’ level of risk.

At ERGO NEXT Insurance, some business owners spend as little as $19 per month^† for a single business insurance policy. And almost half of the businesses that we insure in South Carolina — 44% — spend under $50 per month for their total coverage.

For general liability insurance, which is the most common type of business insurance bought by ERGO NEXT customers in South Carolina, the median cost for liability coverage is just $53 per month.

65% of South Carolina small business owners insured by ERGO NEXT spend $100 or less per month for business insurance.

The monthly or annual premium you’ll pay for your business insurance in South Carolina depends on a number of factors related to your business risk, including:

• Your industry. Jobs that are higher-risk, such as construction, often have higher insurance costs than lower-risk desk jobs, such as an accountant.
• The number of employees you have. With South Carolina’s mandate on workers’ comp coverage, your business insurance might cost more if you’re covering four or more employees than if you’re covering just yourself as a sole proprietor.
• The location of your business. If you’re in a more densely populated city like Charleston, you may pay more for business insurance than if you operate a business in a smaller town like Landrum.
• Your years of work experience. A proven history of workplace safety and success in your industry can impact your insurance rate. A new business owner could pay more than a veteran in their field.
• Your insurance claims history. Your record of safety, losses and claims could have an impact on your insurance premium.
• The insurance coverage limits you choose. Higher insurance coverage limits on your policy could offer more protection over more risks. But it could also increase the cost of your business insurance.

The best way to know exactly what you’ll pay for business insurance is to get a quote to check the exact price for your business. It takes about 10 minutes, and you can do it 100% online.

Start a free business insurance quote with ERGO NEXT.

Which types of SC business insurance policies do business owners buy most often?

In 2025, general liability insurance was the most common South Carolina small business insurance policy. It represents 71% of all of the policies ERGO NEXT has with South Carolina business owners.

Customers buy this SC small business insurance for its protection over accidental property damage caused by their business and medical costs for non-employees who get hurt at their place of business.

Though this type of coverage isn’t mandated by the state, liability coverage is often required by business partners like landlords, financial lenders, event planners, vendors or clients.

A South Carolina business may need general liability insurance coverage to:

• Get or renew a professional license.
• Qualify for financing like business loans or lines of credit.
• Sign a lease on a commercial storefront, office, warehouse, workshop, storage facility or building.
• Submit a bid for a job.
• Participate as a vendor in an event space.
• Begin work on some contracts.

The second-most popular type of small business insurance in South Carolina is commercial property insurance. This is an essential SC business insurance for small businesses that own, rent or lease physical property — even those who run their business from home.

This coverage could help protect the property you use for business, including the building structure itself and its business contents, such as computers and laptops, furniture, lighting, flooring, business equipment, products and inventory.

71% of the active policies that ERGO NEXT customers have in South Carolina are general liability insurance.^¹