State insurance guide
South Carolina Business Insurance Guide 2026
South Carolina's workers' compensation law applies to employers that regularly employ four or more employees in the state and had $3,000 or more in total payroll in the previous calendar year. Auto liability minimums and paid leave rules follow, each with its official source.
Explore South Carolina requirements
Open the state requirements checklistSouth Carolina's workers' compensation law applies to employers that regularly employ four or more employees in the state and had $3,000 or more in total payroll in the previous calendar year (South Carolina Code of Laws 42-1-360, Exemption of casual employees and certain other employments). Auto liability coverage must be at least $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (S.C. Code § 38-77-140 (South Carolina Legislature, Title 38 Chapter 77)). NCSL's table lists no mandatory state-run paid family leave or temporary disability program for South Carolina (NCSL).
Checked against official sources on October 3, 2026; the agencies named below decide how a rule applies to a particular business.
Shopping for business insurance in South Carolina? Request coverage help
Workers' compensation
Who must carry it: 4 or more regular employees and $3,000+ prior-year payroll (South Carolina Code of Laws 42-1-360, Exemption of casual employees and certain other employments).
Exemptions and exclusions
S.C. Code 42-1-360 also excludes casual employees, agricultural employees, state and county fair associations, railroads and railway express companies, sellers of agricultural products on commission, straight-commission real estate salespersons with an independent contractor agreement, federal employees and certain owner-operator truck drivers. Exempt employers may elect coverage (42-1-380) (South Carolina Code of Laws 42-1-360, Exemption of casual employees and certain other employments).
The agency to ask is the South Carolina Workers' Compensation Commission. To check a proposal's payroll arithmetic, use the workers' comp calculator; the workers' compensation guide explains what the coverage pays for.
Auto liability minimums
South Carolina's minimum auto liability limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
- In force: for policies issued or renewed on or after January 1, 2007
- Source: S.C. Code § 38-77-140 (South Carolina Legislature, Title 38 Chapter 77)
Uninsured motorist coverage at the same limits is also required (S.C. Code § 38-77-150), and the option to register an uninsured vehicle for a fee ended July 1, 2024 (S.C. Code § 56-10-510). Ask your insurer whether these also apply to your commercial and fleet policies.
Commercial and for-hire vehicles can face different or higher federal or state requirements, and leases, lenders and clients can ask for more; see our commercial auto guide.
Paid leave and disability insurance
There is no mandatory state-run paid family and medical leave insurance program and no state temporary disability insurance program in South Carolina, according to NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws; cross-checked on October 3, 2026 with the U.S. Department of Labor Women's Bureau).
The same NCSL page lists South Carolina among the states whose laws let employers buy optional paid leave coverage from private insurers; that option creates no employer mandate.
Compilations can lag new laws, as Virginia's 2026 program shows (Code of Virginia § 60.2-801). Before planning South Carolina payroll for a future year, confirm the position with the state agency that handles labor and workforce matters.
Other requirements to check
Beyond state law, a South Carolina license, lease or client contract can impose its own insurance or bond conditions, such as general liability limits. Record each request in the certificate of insurance checklist; other states are in the requirements-by-state guide.
Where to verify
- Workers' compensation: South Carolina Workers' Compensation Commission
- Auto liability minimums: S.C. Code § 38-77-140 (South Carolina Legislature, Title 38 Chapter 77)
- Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau
The state requirements checklist prepares questions from your headcount and vehicles; to ask PolicyBenchmark to follow up, request coverage help.
Frequently asked questions
How many employees trigger workers' compensation in South Carolina?
Four regularly employed employees in the state, provided total payroll in the previous calendar year was at least $3,000. Below either test the law does not apply, though an exempt employer may elect coverage. The agency to ask is the South Carolina Workers' Compensation Commission.
Are South Carolina's auto minimums enough for business vehicles?
South Carolina's minimums are $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage (S.C. Code § 38-77-140 (South Carolina Legislature, Title 38 Chapter 77)). They are the legal floor, not a measure of what a business needs. Commercial and for-hire vehicles can face different or higher federal or state requirements, and contracts can require more.
Does South Carolina require employers to pay into a paid leave program?
No, according to NCSL's table, last updated November 7, 2025: South Carolina has no mandatory state paid family and medical leave program and no state temporary disability insurance program. NCSL lists only optional coverage that employers can buy from private insurers. Confirm before planning a future payroll year.
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.