Business Insurance in South Carolina
Small companies are enjoying success across South Carolina, where more than 400,000 small businesses make up 99.4% of all companies in the state. South Carolina's excellent economic climate for businesses is likely a contributing factor. South Carolina has no state property tax, local income taxes, inventory tax, sales tax on manufacturing equipment, wholesaler tax, and a favorable corporate income tax structure that offers businesses nationwide premium startup costs.
It's no wonder that small businesses in South Carolina employ more than 777,000 of its citizens, or almost half of the state's entire private workforce. In 2015, the number of new net jobs created was approximately 30,000. With an adaptable workers' compensation plan and a distant location that necessitates businesses to take safety measures to guard against hurricanes every year, it's wise for South Carolina business owners to take proactive steps to back up their investments.
Some of the Top covered industries in South Carolina are:
- Lawn care professionals
- IT consultants
- Insurance agents
- Janitorial and cleaning services
Other industries that get insurance are:
- Architecture & Engineering
- Commercial Maintenance
- Home Services
In South Carolina, any employer who regularly employs four or more workers, full or part-time, must carry workers' compensation coverage. Some employers are not covered by this rule, including agricultural employees, tramways and railroad express service providers, and companies with a yearly payroll of less than $3,000, regardless of the number of employees who worked at the business during the year.
Types of Commercial Business Insurance Offered in South Carolina
General Liability Insurance
General Liability Insurance is the most common type of business insurance, and virtually all companies in South Carolina should have it. It protects the company from lawsuits others are instigating, including those from third-party bodily injury, property damage, personal injury, and defamation. It is also referred to as business liability insurance, and its quote usually includes the following:
- Bodily injury and property damage liability
- Personal and advertising injury
- Medical payments
- Products-completed operations
- Damage to premises rented to you
General liability insurance is sometimes coupled with property insurance in a business owners' policy (BOP), but many contractors can also buy it as a standalone policy.
As a contractor or small business owner, insurance protection is a requirement for your livelihood. A single incident can cause you to deal with a massive lawsuit. An easy way to guard against this is to ensure you carry enough liability insurance. Several companies or clients might request you carry general liability.
Commercial Auto Insurance
Business automobile coverage is a liability and physical damage protection for vehicles, such as cars, trucks, and vans, which are utilized for company functions. Business cars require a separate policy because they're more frequently exposed to risk than personal cars.
Commercial auto insurance doesn't just cover industrial vehicles like semis or dump trucks. For example, companies that use a vehicle to conduct errands, transport tools, or transport customers may also need a commercial auto insurance policy.
A commercial auto insurance quote typically includes the following:
- Physical Damage
- Medical Payments
- Uninsured Motorist
- Hired Auto
- Non-Owned Coverage
- Any Auto
Workers’ compensation insurance
You need workers' compensation insurance if you're in South Carolina and own a business with more than four employees. Insurance helps businesses pay for expenses relating to injuries sustained or illnesses contracted by employees while at work.
Small businesses are usually required to formulate a policy concerning workers' compensation as soon as they hire their first employee (or a certain number of workers).
Even in the absence of specific legislation, this policy offers protection against an injured employee's medical costs and employee lawsuits arising from workplace injuries, such as a fall in the plant, an injury caused by a tool or machinery, or an occupational illness.
It is prudent to consider the function of workers' comp to safeguard yourself and your coworkers in case of a worksite accident. If you fail to carry worker's compensation, your company will be liable for all related medical and legal costs. Plus, there are stiff penalties for non-compliance.
Business Owners Policy
A Business Owners Policy (BOP) combines property and liability protection into a single, easy-to-manage package. It’s well suited for small to medium-sized companies that rent or own commercial property, such as a storefront, warehouse, or office building.
A business owner's policy contains two key coverages.
Liability - BOP coverage is typically the same as liability coverage in general liability policies. It covers damage resulting from bodily injury and damage to property, in these situations, both due to advertising injury and product malfunction. A self-insured BOP won't cover your workers, so you'll have to get a separate workers' compensation policy.
Property - This insurance coverage covers rental facilities, commercial property, and movable property owned by and used for a company. It could also pay for other purposes, such as debris removal, loss of earnings, and pollution cleanup as part of a loss with a covered deductible.
A BOP policy, like other coverage, does have deductibles and coverage limits that are exceptions to pay attention to. If you would like more protection for something that's not fully covered, policy additions might be available to extend coverage.
Professional Liability Insurance
South Carolina businesses that offer professional services should consider incorporating this coverage. It protects against claims of professional negligence, both actual or believed to be accurate, and helps finance defense expenses. It's also known as errors and omissions insurance (E&O).
Experts who give advice typically need professional liability coverage to be protected against liability arising from their actions. These incidents are typically excluded from any other types of business insurance. For example, a client claims that their accountant made errors in their taxation, resulting in a financial loss. The accountant's professional liability insurance could help cover the legal and settlement fees.
Many professional liability policies are written case-by-case basis, meaning they're only obtainable to claims made during the policy period. A retroactive date may be enclosed to extend the policy's coverage for incidents before coverage commences.
Professional liability insurance coverage implies services rendered in the past and work performed worldwide are protected in case of an allegation.
This insurance safeguards businesses against security breaches and cyberattacks, like personal injury and data breaches. It includes first-party and third-party coverage for forensic investigation, data recovery, and legal costs. Companies that manage customer data, like credit card information, need this coverage.
As the necessity of data insurance has expanded beyond just the medical and financial industries, this coverage is becoming more widespread among other types of businesses. Businesses that could profit from a cyber policy include:
- Hair salons / Barbers
- Real estate agents
South Carolina Small Business Insurance Requirements
Business laws define which sorts of insurance coverage you need across South Carolina. These laws apply in all state areas, from Columbia to Charleston.
Workers' compensation insurance
Under specified circumstances, South Carolina requires businesses with four or more workers, full-time or part-time, to carry workers' compensation insurance.
Workers' comp protects workers in South Carolina who are diagnosed with workplace injuries and illnesses, offering them medical aid and rehabilitation, and helping them receive disability benefits. Employers are also shielded from legal liability due to job-related accidents.
Commercial auto insurance
All business-owned vehicles in South Carolina must be covered by commercial auto insurance. All commercial vehicles in South Carolina must be covered by commercial auto insurance. This plan covers the cost of accidents involving business vehicles.
South Carolina's minimum auto liability insurance requirements (and uninsured driver coverage) are as follows:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Trucking companies may need more provisions to adhere to regulations.
Cost of Business Insurance in South Carolina
On average, commercial business insurance in South Carolina costs about $47 each month. Although your company's compensation may vary because of factors like:
- Risks you routinely encounter.
- Your coverage types and policy limits.
- The number of people you employ.
Get a Quote For South Carolina Business Insurance
If you need a quote for your South Carolina company, please visit us at InsuranceAdvisor.com. Choose your state, then choose from General Liability, Commercial Property, Business Auto, and Workers’ Compensation insurance to answer the application questions. Once we receive your request, we will provide you with a quote as quickly as possible.
Why Choose Insurance Advisor for Commercial Insurance in South Carolina?
Instead of making an appointment to meet with an agent in person to request a South Carolina business insurance quote, go to InsuranceAdvisor.com from the comfort of your home or anywhere when it’s convenient for you. Once you create an account, your business information is stored safely on our site. You can come back anytime to request quotes for other types of insurance or at your next renewal so that you can compare your options. You can keep your past and current insurance records on file and at your fingertips at InsuranceAdvisor.com.
We also make it easy to get your certificates of insurance for clients. You can enter certificate details in your account and get instant certificates (when no coverage changes are needed.) We want to make managing your business insurance easy!
Frequently Asked Questions (FAQ) about South Carolina Business Insurance
1. How much is business insurance in South Carolina?
Commercial insurance can be affordable for small business owners in South Carolina. Median annual rates there are:
- General liability-$44 per month
- Workers' comp- $68 per month
- Professional liability/E&O-$59 per month
The factors that set insurance rates for businesses include:
- Your industry and risks
- Business operations
- Number of employees
- Policy limits and deductibles
2. Where can I get inexpensive business insurance in South Carolina?
The cheapest insurance in South Carolina is not the best insurance for your business. If you want broader coverage, meaning more losses are covered, that translates into paying more for insurance.
Shopping insurance by getting more than one quote from the same or different agents is recommended to see how one South Carolina insurance company’s rates compare to another’s. Insurance carriers have different rates because each insurance company’s loss experience in a particular industry for a line of coverage will differ. That means the premiums charged will also vary among various insurers.
Always read the exclusions in the policy. If the main thing that keeps you up at night is excluded, how happy will you be with that inexpensive policy? Get an affordable option with the most likely occurrences to happen to your business insured and not listed under exclusions. The old saying, “You get what you pay for,” is true with all types of insurance.
3. What types of business insurance are required for businesses in South Carolina?
Small businesses in South Carolina typically buy these types of insurance.
- General liability insurance
- Business Insurance Policy
- Cyber Liability Insurance
- Workers Compensation
- Professional Liability Insurance
- Commercial Auto Insurance
4. Which insurance companies are best in South Carolina?
A South Carolina commercial insurance agent determines the best insurance company for your business. Insurance companies often specialize in specific business industries, varying from state to state. An independent insurance agent licensed in South Carolina matches your business with carriers that know your industry and company's insurance needs. Visit us at InsuranceAdvisor.com to request a quote for General Liability, Workers’ Compensation, Business Property, Business Auto, or Umbrella insurance.
5. How to find out if a business has liability insurance in South Carolina?
Make an appointment with your vendor to request a copy of their public liability certificate, which will provide the policy number with information and documentation related to this insurance. Call the insurance provider and request confirmation of the insurance's validity by calling the reference number given on the certificate.
6. What is the cost of essential business liability insurance in South Carolina?
Essential business liability insurance premiums are calculated using a variety of factors, such as:
- Amount of Coverage
- Industry and risk factors
- Number of employees
Business liability insurance typically costs about $42 monthly.