Key Takeaways
- South Carolina requires workers' compensation insurance for employers with FOUR or more employees
- Workers' compensation provides no-fault coverage for workplace injuries and is the exclusive remedy
- Commercial General Liability (CGL) protects businesses from third-party bodily injury and property damage claims
- Professional liability insurance covers errors and omissions in professional services
- The South Carolina Workers' Compensation Commission administers the workers' comp system
South Carolina Liability & Workers' Compensation Insurance
South Carolina Workers' Compensation
Coverage Requirements
South Carolina requires workers' compensation for most employers:
| Requirement | Details |
|---|---|
| Threshold | 4 or more employees |
| Part-Time Workers | Count toward threshold |
| Seasonal Workers | Count toward threshold |
| Coverage Type | No-fault system |
| Exclusive Remedy | Employees cannot sue employer for work injuries |
Exempt Employers
Some employers are exempt from mandatory coverage:
- Agricultural employers with fewer than required employees
- Some domestic workers
- Certain railroad workers (covered by federal law)
- Real estate agents (independent contractors)
Required Benefits
Workers' compensation in South Carolina provides:
| Benefit Type | Coverage |
|---|---|
| Medical Benefits | All reasonable and necessary treatment |
| Temporary Total Disability (TTD) | 66 2/3% of average weekly wage |
| Temporary Partial Disability (TPD) | 66 2/3% of wage difference |
| Permanent Partial Disability | Scheduled benefits by body part |
| Permanent Total Disability | 66 2/3% AWW for 500 weeks |
| Death Benefits | Surviving spouse and dependents |
Benefit Limits
South Carolina sets maximum and minimum weekly benefits:
| Limit Type | Calculation |
|---|---|
| Maximum Weekly | 100% of State Average Weekly Wage |
| Minimum Weekly | $75 or actual wage if less |
| Waiting Period | 7 days for wage loss benefits |
| Retroactive | Benefits retroactive if disability exceeds 14 days |
South Carolina Workers' Compensation Commission
The SC Workers' Compensation Commission oversees the system:
- Adjudicates disputed claims
- Approves settlement agreements
- Monitors employer compliance
- Sets maximum benefit rates
- Maintains employer coverage database
Commercial General Liability (CGL)
Coverage Components
| Coverage | What It Covers |
|---|---|
| Coverage A - Bodily Injury & Property Damage | Third-party injuries and damage to others' property |
| Coverage B - Personal & Advertising Injury | Libel, slander, false advertising, wrongful eviction |
| Coverage C - Medical Payments | Small medical expenses regardless of fault |
CGL Coverage Triggers
| Trigger | When Coverage Applies |
|---|---|
| Occurrence | Policy in effect when injury/damage occurs |
| Claims-Made | Policy in effect when claim is reported |
Typical CGL Limits
| Limit Type | Common Amount |
|---|---|
| Per Occurrence | $1,000,000 |
| General Aggregate | $2,000,000 |
| Products/Completed Ops Aggregate | $2,000,000 |
| Personal & Advertising Injury | $1,000,000 |
| Medical Payments | $5,000 - $10,000 |
| Damage to Rented Premises | $100,000 - $300,000 |
Professional Liability Insurance
Errors and Omissions (E&O) Coverage
Professional liability protects against claims of:
- Negligent acts in professional services
- Errors or mistakes in work product
- Failure to perform professional duties
- Misrepresentation or bad advice
Professionals Requiring E&O
In South Carolina, E&O is important for:
- Insurance producers and agents
- Real estate professionals
- Attorneys and accountants
- Healthcare providers
- Financial advisors
- Architects and engineers
Claims-Made Policies
Most professional liability uses claims-made coverage:
| Feature | Explanation |
|---|---|
| Retroactive Date | Coverage only for acts after this date |
| Reporting Period | Claim must be reported during policy period |
| Extended Reporting | "Tail" coverage for claims after policy ends |
| Prior Acts Coverage | May cover acts before policy inception |
Umbrella and Excess Liability
Purpose of Umbrella Policies
Umbrella liability provides:
- Additional limits above underlying policies
- Broader coverage than underlying policies
- Drop-down coverage for gaps
- Protection against catastrophic losses
Underlying Insurance Requirements
Typical umbrella policies require minimum underlying limits:
| Underlying Policy | Minimum Limit |
|---|---|
| Auto Liability | $250,000/$500,000 |
| Homeowners | $300,000 |
| CGL | $1,000,000 |
South Carolina-Specific Considerations
Tourism and Hospitality Liability
South Carolina's tourism industry requires:
- Premises liability for visitor injuries
- Liquor liability for alcohol-serving establishments
- Event liability for festivals and attractions
- Watercraft liability for coastal operations
Construction Industry
South Carolina construction requires:
- Contractor's general liability
- Completed operations coverage
- Subcontractor requirements
- Wrap-up programs for large projects
Exam Tip: South Carolina requires workers' compensation for employers with FOUR or more employees. This threshold is higher than many states. Workers' comp is the exclusive remedy, meaning employees typically cannot sue their employer for workplace injuries.
How many employees must a South Carolina employer have before workers' compensation insurance is required?
What percentage of average weekly wage does South Carolina workers' compensation pay for Temporary Total Disability?
Which type of liability coverage protects a business from claims of negligent professional services?
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