South Carolina Contractor Insurance Requirements
South Carolina requires workers' compensation for employers with four or more employees under the Workers' Compensation Act. The South Carolina Contractors' Licensing Board licenses contractors and requires proof of GL and WC insurance. South Carolina's coastal and resort real estate market — particularly Hilton Head, Myrtle Beach, and Charleston — drives high COI standards, with most commercial property managers requiring $1M/$2M GL.
South Carolina COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in South Carolina. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $300,000 |
| General Liability (aggregate) | $600,000 |
| Workers' Compensation | Mandatory 4+ employees |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Less Common |
Coverage Notes
GL: South Carolina licensing requires $300K per occurrence minimum. Charleston and Hilton Head commercial projects typically require $1M/$2M.
WC: S.C. Code § 42-1-360 requires WC for employers with 4+ employees. Agricultural employers are exempt. Contractors with 1–3 employees are not required to carry WC.
Umbrella: Required on coastal and resort property construction projects due to high property values.
Additional Insured: Standard on commercial property management contracts.
Waiver of Subrogation: Less universally required than in larger states; included in most commercial contracts.
South Carolina-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in South Carolina. Property managers should be familiar with these statutes when reviewing vendor COIs.
South Carolina Workers' Compensation Act (S.C. Code § 42-1-360)
Requires WC for employers with 4+ employees. The Workers' Compensation Commission adjudicates claims.
South Carolina COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in South Carolina.
Do contractors in South Carolina need workers' compensation?
South Carolina requires workers' compensation for employers with four or more employees (S.C. Code § 42-1-360). Contractors with 1–3 employees are exempt from the mandate, so property managers should request documentation of employee count for all South Carolina vendors.
What are the minimum insurance requirements for SC contractors?
South Carolina contractor licensing requires at least $300,000 per occurrence GL. Charleston and Hilton Head commercial property managers typically require $1M/$2M GL with workers' compensation and additional insured endorsements.
What special COI requirements apply to South Carolina coastal properties?
Coastal South Carolina properties may require builders risk, windstorm/hurricane, and flood insurance in addition to standard GL and WC. High-value resort and beach properties often require $1M umbrella. Request specialty coverages when hiring contractors for coastal properties.
What should I require from a South Carolina contractor with fewer than 4 employees?
Contractors with fewer than 4 employees are exempt from WC in South Carolina. As the property owner, you could bear liability for injuries if the contractor is uninsured. Request a signed WC exemption acknowledgment and consider requiring voluntary WC coverage in your vendor agreement.
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