Finding the Right Small Business Liability Insurance in South Carolina

Operating a small business in South Carolina comes with certain risks and exposures. That’s why having the proper liability insurance is crucial to protect your company’s financial interests. This comprehensive guide examines South Carolina’s liability insurance requirements, costs, and other key considerations for small business owners.

Overview of Business Liability Insurance

• Covers costs related to 3rd-party bodily injury, property damage, personal injury, advertising injury lawsuits
• Protects business assets and owners’ personal assets
• Required by many commercial property leases and contractors’ licensing
• Recommended even when not legally mandatory

Types of liability insurance policies:

• General liability insurance
• Errors & omissions (E&O)
• Directors & officers (D&O) liability
• Product liability
• Liquor liability
• Professional liability

Key benefits:

• Pays legal fees and court costs
• Covers settlements and judgments
• Provides a legal defense
• Limits risks and protects business assets

South Carolina Liability Insurance Requirements

South Carolina has state-level requirements for certain businesses:

Workers’ Compensation

• Mandatory for all SC employers with 4 or more employees (full-time or part-time)
• Covers costs of employees’ work-related injuries and illnesses

Commercial Auto Insurance

• Required minimum liability limits:
  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $25,000 property damage per accident
• Applies to all business vehicles driven in SC

Professional Licenses

• Specific liability insurance and surety bond requirements for contractors, real estate agents, accountants, architects, and other licensed professions

While not legally required, general liability insurance is highly recommended for all South Carolina small businesses to cover premises risks, products/services risks, and more.

Cost of Small Business Liability Insurance in SC

Typical monthly premium costs for South Carolina small businesses:

• General liability: $44
• Professional liability: $59
• Workers’ compensation: $68

Factors that determine your business’s liability insurance costs:

• Industry type and risks
• Years in business and experience
• Number of employees
• Revenue size
• Types of clients
• Claims history
• Policy deductible and coverage limits

How to Buy Small Business Liability Insurance in SC

Follow these steps to get liability insurance quotes for your South Carolina business:

1. Determine your coverage needs – Consider your industry, clients, services, products, number of employees, business property, vehicles, and other risk exposures.

2. Research requirements – Check if your profession requires specific liability policies or surety bonds in South Carolina.

3. Compare multiple quotes – Use an online marketplace like Insureon or CoverWallet to quickly compare quotes.

4. Choose a top insurer – Select a reputable national or regional insurance carrier with strong financial ratings.

5. Pick ideal coverage limits – Balance cost savings with adequate protection for your business assets and future risks.

6. Add endorsements if needed – Supplement your policy with customized endorsements based on your unique risks.

7. Obtain proof of insurance – Secure a certificate of insurance to provide to clients, vendors, building owners, and other requestors.

Top South Carolina Small Business Liability Insurance Providers

Some top insurance carriers for small businesses in South Carolina include:

• State Farm – Popular for general liability and BOP policies, competitive pricing
• Travelers – Broad coverage options, strong financial ratings
• The Hartford – Flexible bundled plans, discounts for safety measures
• Progressive – Competitive pricing, commercial auto insurance expertise
• Philadelphia Insurance – Specialized plans for contractors and professionals
• Southern Mutual – Local insurer with personalized service and competitive rates

Work with an independent insurance agent or use an online insurance marketplace to compare quotes from multiple providers.

FAQs About SC Small Business Liability Insurance

Does general liability insurance cover professional services risks?

No, most general liability policies exclude claims directly resulting from your professional services or advice. E&O or professional liability insurance is recommended to cover this exposure.

What happens if I operate without required insurance in SC?

You may face fines or have your business license suspended or revoked. In the case of workers’ comp insurance, you can also be held personally liable for employee injury costs.

Can I get by with just a business owner’s policy?

A BOP bundles property and liability insurance together in one convenient package. However, it may not meet all your specific risks, so additional policies like E&O or cyber liability may also be prudent.

How much liability coverage should my business carry?

Most experts recommend $1 million to $2 million in general liability coverage limits. Higher risk industries may need $3 million to $5 million for adequate protection.

Are there ways to reduce my liability premiums?

Yes! Increase your deductible, implement safety measures, take risk management steps, maintain good claims experience, bundle multiple policies, and compare quotes from several insurers.

Is Liability Insurance Worth it for a South Carolina Small Business?

Liability insurance protects your hard-earned business assets and personal assets from potentially massive lawsuit judgements. It also provides legal defense costs if you’re ever wrongly accused of harm or negligence. The relatively small monthly premium investment will give you peace of mind knowing you have financial protection against unforeseen risks. Don’t wait until it’s too late – get covered now.