Insurance is essential for contractors operating in South Carolina. This guide breaks down insurance requirements, costs, and coverage options based on our analysis of actual quotes from leading carriers.
Establish proper coverage by exploring construction business liability insurance.
General Liability Insurance for South Carolina Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for South Carolina contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Premium | Potential Savings |
|---|---|---|---|---|
| $500K | $14,300 | 2.9% | $5,700 | 60% |
| $1M | $23,100 | 2.3% | $11,400 | 51% |
| $2.5M | $76,600 | 3.1% | $28,500 | 63% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for South Carolina Contractors
Worker’s compensation insurance is mandatory for South Carolina contractors with 4 or more employees. Based on our analysis, South Carolina has one of the highest workers’ compensation rates in the country:
- Average cost per employee: $8,810 annually
- Cost per $100K payroll: $21,480
Key factors affecting premiums:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
Common contractor classification codes and approximate rates:
- Code 5606 (Project Manager/Supervisor): $4-6 per $100 of payroll
- Code 5645 (Residential Construction): $10-14 per $100 of payroll
- Code 5403 (Commercial/Large Projects): $14-20 per $100 of payroll
Additional Business Insurance for Contractors in South Carolina
1. Commercial Auto Insurance
- Cost: $1,000-$4,000 per vehicle annually
- Required for business-owned vehicles
- Higher limits often needed for larger contractors
- Coverage for accidents, theft, and damage
- Protection for both owned and leased vehicles
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually for $15k-$50k coverage
- Protects both owned and rented equipment
- Coverage follows equipment to all jobsites
- Protection against theft, damage, and vandalism
- Includes coverage during transport
3. Commercial Property Insurance
- Protects offices, storage facilities, and workshops
- Annual premiums: $2,000-$20,000+ based on property value
- Coverage for fire, theft, vandalism, and natural disasters
- Protection for business contents and inventory
- Options for equipment breakdown coverage
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
- Coverage for materials and supplies
- Options for extended coverage periods
5. Contractor License Bonds
- Protection for project owners and clients
- Required for certain contractor licenses
- Typical cost: 1-3% of bond amount
- Premium varies based on credit and experience
- Guarantees compliance with state regulations
Get South Carolina Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for South Carolina contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands South Carolina’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your South Carolina contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.