South Carolina Business Insurance

The owners and employees of South Carolina’s nearly 420,000 small companies¹ have doubtlessly worked extremely hard to build their businesses. But even a single unexpected event can derail that success by causing major financial problems.

This is why business insurance in South Carolina is so important. It helps pay for damages from incidents like:

• Accusations of injury or property damage
• Employees who get hurt at work
• Accidents in business-owned vehicles
• Claims of work mistakes and professional negligence

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in South Carolina or start a free instant quote to review options for your business.

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions.

Start an instant quote today.

The types and amount of business insurance your company might need are based on factors that include:

• Regular business-related risks
• Your company’s industry
• Your number of employees

A business insurance package in South Carolina might consist of:

• General liability insurance to help cover damages from allegations of injury or property damage, including lawsuit costs
• Workers’ compensation insurance to assist employees who suffer on-the-job injuries by covering a portion of medical expenses and lost wages
• Commercial auto insurance to help cover injuries and property damages if someone has an accident in a company-owned vehicle
• Professional liability insurance to help pay for damages and lawsuit costs if someone says that your company’s professional negligence caused financial losses

General Liability insurance

General liability insurance in South Carolina is one of the most common and crucial forms of coverage. If your business stands accused of injuring someone you don’t employ or destroying their property, general liability helps pay for damages, including medical expenses and the cost of repairs or replacements.

For example, a worker at a maid service business in Charleston accidentally spills a bucket of bleach at a client’s house and ruins an expensive rug. The cleaning company’s general liability insurance would help cover the costs to replace the rug so it doesn’t have to foot the entire bill out of pocket.

It’s worth noting that if you’re planning to rent office space, many commercial landlords require general liability insurance as a condition of the lease.

Cleaning and construction firms can upgrade general liability coverage with tools and equipment insurance. If essential business gear is lost, damaged or stolen, tools and equipment coverage helps pay for the costs of replacing or repairing items.

Workers’ Compensation insurance

If you employ four or more people, South Carolina law requires you to purchase workers’ compensation coverage. This applies to both full-time and part-time employees, including family members.²

Injuries that happen at work can stick employees with hefty medical bills and sideline them while they recover. Workers’ comp insurance helps pay for these unexpected events.

Here’s a situation where your business would need workers’ comp coverage in South Carolina:

An employee of a Greenville-based tree trimming company suffers a serious cut while pruning a limb and needs emergency care, stitches and three weeks to recover. Workers’ comp insurance helps the employee pay for medical expenses and reimburses a portion of lost wages while he recuperates.

Commercial Auto insurance

Businesses that own vehicles will want to add commercial auto coverage to their business insurance package in South Carolina since personal auto insurance typically doesn’t pay for damages from work-related accidents.

The Palmetto State requires that all drivers carry auto insurance with a minimum of $50,000 in damages.³ But if you have multiple vehicles titled to your business or employees drive for work on a regular basis, we recommend that you purchase more than the minimum protection.

For example, a handyman in Myrtle Beach has a collision with another driver in a company truck and damages both vehicles. Commercial auto insurance helps pay to repair the vehicles and would cover some medical expenses, up to the policy limits.

Business insurance in South Carolina might include a form of commercial auto insurance known as hired and non-owned coverage. This type of insurance helps cover accident damages if you occasionally ask employees to drive their own vehicles for business purposes or rent them.

Professional Liability (E&O) insurance 

Accusations of professional negligence can hurt both a small business’s finances and its reputation. If a client claims that you delivered substandard work, failed to complete a job or missed a deadline, you could be sued for financial losses.

Professional liability insurance, also known as errors and omissions (E&O) coverage helps pay for costs associated with these types of claims, including court and attorney fees and any damages for which you are found responsible.

For instance, a client accuses a self-employed accountant in Columbia of making a critical error that led to a hefty fine. E&O coverage helps the accountant reimburse the client for the fine and would cover some lawsuit costs, depending on the policy limits and the deductible.

Business insurance in South Carolina costs Next customers a median of about $47 each month. But your company might pay more or less depending on factors like:

Risks you routinely encounter. Owners of higher-risk businesses should budget a bit more for insurance than those with fewer risks. In South Carolina, construction companies pay a median of $66 per month because of the risks of injuries. Management consultants based in the state don’t have the same exposure to regular dangers of harm and spend a median of about $40.

Your coverage types and policy limits. Purchasing the minimum required insurance or choosing the lowest coverage limits will cut your monthly bill, but if you have to file a claim, be prepared to pay more out of pocket.

The number of people you employ. Companies with 20 employees will spend more on workers’ comp insurance than those with five. Providing accurate employee numbers, including part-time workers, will simplify the process of getting a quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

More resources for South Carolina small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in South Carolina:

• South Carolina Small Business Development Centers
• South Carolina Business One Stop
• South Carolina Department of Insurance

Article sources: 

1. U.S. Small Business Administration
2. South Carolina Workers’ Compensation Commission
3. South Carolina Department of Insurance