South Carolina workers’ comp and subcontractor insurance requirements
What general contractors, property managers and other businesses hiring subcontractors in South Carolina need to know: who has to carry workers’ comp, when you’re on the hook for an uninsured sub, and what to collect before work starts.
South Carolina at a glance
| Who must carry workers’ comp | Employers with 4 or more employees and a total annual payroll of $3,000 or more in the prior year. |
|---|---|
| Where coverage comes from | Private insurers, plus self-insurance where approved |
| Regulator | South Carolina Workers’ Compensation Commission |
Are you liable for an uninsured sub in South Carolina?
A general contractor is the statutory employer of a subcontractor’s employees when the sub doesn’t carry coverage (S.C. Code § 42-1-400).
Separately, your own workers’ comp premium auditor may charge you for an uninsured sub’s payroll. Collecting a current certificate for every sub is the simplest protection. See workers’ comp audits and uninsured subcontractors, or estimate the cost with the workers’ comp audit calculator.
What to collect from subcontractors in South Carolina
- A certificate of insurance, usually an ACORD 25, showing GL, auto, umbrella and workers’ comp.
- Exemption paperwork for sole proprietors or officers who claim they don’t need workers’ comp under South Carolina rules.
- Additional insured and waiver of subrogation endorsements for higher-risk trades. See waiver of subrogation on workers’ comp.
- A renewal certificate before each policy expires. See COI expiration.
Common contract minimums
These aren’t set by South Carolina law. They’re typical subcontract requirements that you can adjust by trade and project size.
| Coverage | Typical minimum |
|---|---|
| General liability | $1M each occurrence / $2M aggregate, additional insured, primary and non-contributory |
| Auto liability | $1M combined single limit |
| Umbrella / excess | $1M–$5M+, by trade risk and project size |
| Workers’ comp / employers’ liability | Statutory / $500K–$1M each, waiver of subrogation |
Generate requirements by trade with the subcontractor insurance requirements generator.
Frequently asked questions
Is workers’ comp required in South Carolina?
Employers with 4 or more employees and a total annual payroll of $3,000 or more in the prior year. Confirm details with the South Carolina Workers’ Compensation Commission.
Is a general contractor liable for an uninsured subcontractor in South Carolina?
A general contractor is the statutory employer of a subcontractor’s employees when the sub doesn’t carry coverage (S.C. Code § 42-1-400).
What insurance should I require from subcontractors in South Carolina?
State law sets workers’ comp rules; your contract sets everything else. Common minimums are general liability of $1M per occurrence and $2M aggregate, auto liability of $1M, workers’ comp with employers’ liability of $500K–$1M, and additional insured status and waiver of subrogation in your favor.
General information, not legal or insurance advice. Last reviewed October 2026. Rules change, so confirm with the South Carolina Workers’ Compensation Commission or a licensed professional.
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