Workers Compensation provides coverage for employees injured on the job. Unlike most insurance policies, the coverage is described and mandated as part of state law. The following are general guidelines; please check with us for answers to specific questions:
In South Carolina, all employers are required to provide workers compensation coverage for their employees. Employers with four or more full-time employees are required to have workers compensation insurance. Employers with fewer than four employees are strongly recommended to carry the insurance as well; in the absence of insurance, the employer is responsible for payment for injuries covered under the workers compensation law.
Sub-contractors are considered employees of the general contractor they are working for, unless they can document that they have their own insurance. This is why sub-contractors provide Certificates of Insurance to their general contractors; without these, the general contractors must pay for workers compensation for them, and will usually deduct it from their pay.
Premiums are based on (1) payroll, (2) the type of work that is done (more injury-prone vocations have higher premiums), and, in some cases, (3) prior loss history. The initial policy is based on a company's estimated payroll. After the policy expires, the business's books are audited and the premium adjusted, resulting in a refund or additional premium due if the actual payroll differs from the original estimate.
For more information about Workers Comp, click to go to SC Insurance News Service.
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