South Carolina Workers’ Comp exists to protect both employees, employers, and businesses. It is the responsibility of employers to be able to provide their employees with workers comp insurance in the event of illnesses and injuries. In exchange, this insurance protects employers from being sued directly by injured employees, which could risk the livelihood of their businesses.
But do all businesses in South Carolina need to have workers’ comp insurance?
Who’s required to have insurance?
If a South Carolina business continually employs 4 or more workers, it’s usually required to carry workers’ comp insurance. Some exceptions exist for:
- agricultural employees
- railroad employees
- employers with very low annual payroll
- unpaid volunteers
- Business owners (like partners in partnerships and sole proprietors)
Who is covered by South Carolina workers’ comp insurance?
Aside from the exceptions listed above, an employer is required to provide workers’ comp insurance to all of their employees. What defines an employee is important to note. People such as independent contractors or unpaid volunteers don’t count.
As an employee, it’s important to know whether you’re considered an employee or an independent contractor by your employer. This determines whether or not you have access to workers’ compensation benefits. Sometimes a business will write employees off as independent contractors to avoid paying for the costs of workers’ comp insurance.
What do you do if your employer doesn’t have workers’ comp insurance?
In the state of South Carolina, you may be able to seek compensation through the South Carolina Uninsured Employers Fund (UEF). The UEF must first determine whether or not your employer was operating illegally as a self-insured business. From there, they can proceed with your claim. The UEF may accept or deny your claim. In the event of denial, you’re going to be faced with going against a state agency, not just your employer. It’s at this point that legal representation is strongly encouraged.
