As a South Carolina sole proprietor, you are not required to cover yourself, and you owe no policy until you regularly employ four or more people whose wages last year totaled at least 3,000 dollars. With fewer than four workers you are exempt no matter how large your payroll is. When you do buy, you are left out of the coverage by default: a sole proprietor has to opt in to have their own injuries paid.
Who this is for: South Carolina sole proprietors, from a solo landscaper to an owner with a few helpers, sorting out what the state requires and whether to cover themselves.
The short version
- You are out of coverage by default. A sole proprietor is not on the business's policy unless you opt in.
- A policy is required at four employees (Section 42-1-360). Fewer than four is exempt regardless of payroll; the 3,000 dollar payroll figure is a second exemption, not a trigger.
- Employees are covered from day one once you are subject, even if you do not cover yourself.
- You can opt yourself in by having the business notify its insurer that you elect to be included.
- 1099 helpers can still count toward the four if they are really employees under the right-to-control test.
How coverage works for the owner
South Carolina leaves a sole proprietor out of the business's own coverage unless the owner elects to be included. The election is simple in form: the business notifies its workers comp insurer that the owner, who must be actively engaged in the business, is opting in. Nothing about the sole proprietor structure changes the duty to cover your workers, though. The moment you are subject to the law, every employee is on the policy from their first day, and your own election only decides whether you are on it too.
What applies to your business
| Your setup | Is comp required? | Are you covered? |
|---|---|---|
| Just you, no employees | No | Only if you opt in; many buy an owner-only policy for contracts |
| You plus one to three helpers | No | Fewer than four people is exempt regardless of payroll; helpers can still be covered if you buy |
| You plus four or more workers, wages under 3,000 dollars last year | No | The rare case the second, payroll exemption also excuses |
| Four or more workers | Yes | Employees covered from day one; you opt in through the insurer |
Should you opt yourself in
Opting in puts your own on-the-job injuries on the policy, which matters most if you do physical work alongside your crew. If you stay out, a work injury to you falls to your personal health and disability coverage, which may treat a work injury differently or not at all. Two practical points push owners to opt in: the cost of covering an active owner is usually modest next to the risk, and some general contractors and clients will not let you start until the owner is covered too. If your own health plan has a good disability rider and you rarely do the risky work yourself, staying out can be reasonable. We help you weigh it against what your contracts actually demand.
A Rock Hill example
Illustrative, not a quote. A Rock Hill landscaper runs as a sole proprietor with two seasonal crew members. With only two employees the business is under the four-employee line, so the state does not require a policy no matter how large its payroll is. The owner buys anyway, because a commercial client wants proof of coverage before signing and the owner is on the mowers every day. Opting in through the insurer means a rolled ankle or a mower injury is paid by the policy, and the client gets a certificate the same day. See our workers comp for landscapers page.
Real questions South Carolina owners ask
Does a sole proprietor need workers comp in South Carolina?
Not for yourself by default. You owe a policy once you regularly employ four or more people and paid at least 3,000 dollars in wages the prior year. With fewer than four workers you are exempt regardless of payroll. You can also opt yourself in.
Am I covered as the owner if I buy a policy?
Not automatically. A sole proprietor is left out of the business's own coverage by default. To cover your own injuries you elect to be included by notifying the insurer.
How do I opt myself in as a sole proprietor?
You have the business notify its workers comp insurer that you, as an active owner, elect to be included. The election runs through the carrier, not a separate state filing.
Do my employees need coverage even though I do not?
Yes. Once you are subject, which takes four or more workers, every employee is covered from day one, whether or not you elect coverage for yourself.
Do my 1099 helpers count toward the four?
They can. If a helper is really your employee under the state right-to-control test, they count no matter what tax form you use. A genuine independent contractor with their own business does not.
Why would a sole proprietor opt into coverage?
So a work injury to you is paid by the policy instead of your own pocket. It can also satisfy a general contractor or client who requires the owner to be covered before you start.
I am a one-person business. Do I need anything?
The state does not require a policy for just you. Clients and general contractors often require proof of coverage anyway, and an owner-only policy can meet that and cover your own injuries.
Why South Carolina owners choose Morrow
- We shop the right market for you. In South Carolina you buy workers comp on the open market from any private insurer licensed in the state, because South Carolina has no state fund. If no carrier will take you, the NCCI-run assigned risk plan is the guaranteed fallback, and larger employers can apply to self-insure with approval from the state. We shop the licensed carriers so you are not stuck paying the fallback plan's higher rate.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related South Carolina guides
Every South Carolina business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in South Carolina (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do sole proprietors need workers comp?
- Do I need workers comp for 1099 contractors?
- South Carolina landscaper workers comp
This guide is general information, not legal advice. South Carolina rules and penalty amounts can change, so verify current requirements with South Carolina Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.