In South Carolina, workers compensation is priced on your payroll, the kind of work your team does, and your claims history, then quoted by private insurers competing for your business. Most small South Carolina employers pay a few hundred to a few thousand dollars per employee per year, and loss costs have been easing rather than climbing.
Who this is for: South Carolina owners who want to understand what drives their price and roughly what to budget.
The short version
- Payroll is the base. Premium is calculated per 100 dollars of payroll in each kind of work you do.
- The type of work sets the rate. Your price depends heavily on the category your work falls into for pricing, called the class code.
- Your claims history moves it. A score based on your past claims, called the experience modification rate, raises or lowers your cost.
- Carriers set their own final rates. South Carolina files advisory baseline costs and each insurer adds its own multiplier, so shopping pays off.
- Prices are easing. As of mid-2026 the rating bureau NCCI proposed a small cut of about 0.4 percent to the baseline rates it files, subject to state approval.
What drives your South Carolina price
A handful of factors explain most of the number. Understanding them is how you avoid overpaying.
| Factor | How it affects price |
|---|---|
| Payroll | The base of the calculation; premium runs per 100 dollars of payroll |
| Type of work (the class code) | Riskier trades carry a higher rate than office work |
| Claims history (the experience modification rate) | A record of claims raises your cost; a clean record lowers it |
| How payroll is split across categories | Miscategorized payroll can overcharge you for years |
| Carrier and market | Insurers apply their own multiplier to the shared baseline, so quotes vary |
How South Carolina rates are set
South Carolina is what the industry calls a loss-cost state. The rating bureau NCCI collects payroll and claims data and files advisory baseline costs, called loss costs, for each kind of work, and the South Carolina Department of Insurance reviews those filings. Each insurer then applies its own multiplier to the loss costs to set the rate it charges, which is why two carriers can quote the same business quite differently. South Carolina runs on an April 1 cycle, and as of mid-2026 NCCI proposed a small decrease of about 0.4 percent to voluntary loss costs with a proposed April 1, 2026 effective date, subject to the Department's approval. Because loss costs are advisory and carriers add their own multipliers, the filing is a baseline, not the final price you pay.
Illustrative price ranges
These are rough annual ranges for small South Carolina employers, not quotes. Your real number depends on payroll, the exact work, and your claims record.
| Business type | Rough annual workers comp range |
|---|---|
| Office or professional services | $500 to $2,200 |
| Retail store | $1,100 to $4,600 |
| Restaurant or cafe | $2,200 to $9,000 |
| Cleaning or janitorial | $2,600 to $10,000 |
| Landscaping or small contracting | $3,000 to $13,000 |
A Charleston example
Illustrative, not a quote. A Charleston HVAC company with four installers and one office manager gets very different quotes from two carriers because each applies its own multiplier to the same baseline. By splitting the office manager's payroll out of the higher installer category and cleaning up a past claim on the record, the company lowers its price without changing its coverage. We review the categories and the claims score before you buy so you are not overpaying. See our workers comp for HVAC contractors page.
Real questions South Carolina owners ask
How much does workers comp cost in South Carolina?
Most small South Carolina employers pay a few hundred to a few thousand dollars per employee per year. Your price depends on payroll, the kind of work, and your claims history, and carriers set their own final rates.
How is workers comp priced in South Carolina?
Premium is calculated per 100 dollars of payroll in each kind of work you do. A baseline cost for each work type is filed by the rating bureau NCCI, and each carrier applies its own multiplier to set the final rate.
Are South Carolina workers comp rates going up or down?
As of mid-2026 the rating bureau NCCI proposed a small decrease of about 0.4 percent to voluntary loss costs, with a proposed April 1, 2026 effective date, subject to approval by the South Carolina Department of Insurance.
What makes my workers comp price go up?
Riskier work carries a higher rate than office work, a history of claims raises your cost, and misclassified payroll can overcharge you. Higher payroll means more premium because it is the base of the calculation.
Can I lower my workers comp cost in South Carolina?
Yes. Make sure your payroll is in the right work categories, keep your claims history clean, and shop carriers, since each one applies its own multiplier to the same baseline and quotes can differ.
Does South Carolina set one rate everyone pays?
No. South Carolina is a loss-cost state, so the bureau files advisory baseline costs and each carrier adds its own multiplier. That is why two insurers can quote the same business differently.
Why do two carriers quote me different prices?
Because each carrier applies its own multiplier to the same baseline loss costs and views your industry differently. Shopping the market is how you find the carrier that prices your work best.
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'm a sole proprietor: 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 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)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- South Carolina HVAC 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.