Learn about business insurance requirements and the most common policies for general contractors in South Carolina.
General contractors in South Carolina must carry the following insurance coverage to comply with state laws:
Workers' compensation insurance covers medical care and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related professions, such as carpenters, electricians, and plumbers.
Sole proprietors may not need workers' comp for their South Carolina general contractor license, but it's still a good idea to carry this coverage. Personal health insurance doesn't cover work-related personal injuries, so it can save you from out-of-pocket medical expenses.
If your South Carolina business owns a vehicle, you must carry commercial auto insurance that meets the state's minimum requirements for auto liability insurance.
Commercial auto insurance protects business vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.
General contractors may need different types of insurance depending on the work they do and their client contracts. These policies are the most popular for general contractors in South Carolina, and often provide the best coverage for their insurance needs.
General liability insurance is the foundation of a general contractor’s protection. It covers legal fees related to accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.
Contractors in South Carolina may be required to have a general liability policy depending on the counties they work in and the type of work they do. They also might need it to sign a commercial lease or meet the terms of a client's contract.
Adding commercial umbrella insurance can boost the coverage limits on commercial general liability insurance and other policies.
Licensed contractors who work independently or own a small company often qualify for a business owner’s policy. This policy bundles general liability coverage with commercial property insurance at a discount.
A BOP is the top policy recommended by Insureon's expert agents, as it offers protection against common liability claims and business property coverage at an affordable price.
Surety bonds guarantee reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common types of surety bonds include bid bonds, performance bonds, and payment bonds.
Builder’s risk insurance can cover fires, vandalism, equipment theft, and other damage done to a structure under construction. Project owners may require this coverage for contractors and subcontractors, or you may be able to join their policy as an additional insured.
Depending on the counties or cities your business operates in, you may be required to carry this coverage.
In South Carolina, from Columbia to Charleston, general contractors must be registered and licensed to work on projects worth more than $10,000. Depending on the license limitation [PDF], your requirements for obtaining the license might vary.
There are five tiers of license limitations, which determine the dollar size of projects the licensee can undertake:
Licensure requirements include:
View details on the South Carolina Department of Labor, Licensing, and Regulation website.
Insureon’s industry-leading technology helps general contractors in South Carolina save time and money shopping for insurance. Start an online application to get free quotes from top-rated U.S. insurance companies.
To get through the application quicker, have this information ready:
A licensed insurance agent can answer your questions and help you find the right coverage for your business. Small business owners can get their certificate of insurance shortly after they apply for quotes and pay for a policy.