Workers' Compensation by state

Workers' compensation requirements in South Carolina

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Does South Carolina require workers' compensation insurance?

Yes. South Carolina requires workers' compensation coverage once a business has four or more employees, under the South Carolina Workers' Compensation Act. South Carolina requires workers' compensation coverage once an employer regularly has four or more employees. Employers below the threshold and certain exempt operations may elect coverage voluntarily.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

South Carolina requires workers' compensation coverage once an employer regularly has four or more employees. Employers below the threshold and certain exempt operations may elect coverage voluntarily.

Coverage trigger: Four or more employees
If you go without coverage: Failing to carry required coverage can bring civil penalties, possible misdemeanor liability, and direct exposure to an injured worker's claim.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Employers with fewer than four employees
Employers with an annual payroll below the statutory threshold
Certain agricultural employees and railroad workers covered by federal law

Statutes and sources

South Carolina Workers' Compensation Act

S.C. Code Ann. sect. 42-1-10 et seq.

Regulator: South Carolina Workers' Compensation Commission . Last verified 2026-07-29 from the official source .

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