Contractors Insurance in South Carolina

South Carolina joins California for very strict licensing requirements for contractors operating in the state. They divide contractors according to their primary type of operations: Residential contractors, General Contractors, and Mechanical Contractors.

Residential contractors should visit the South Carolina Residential Builder’s Commission website for information on licensing and regulation.

General Contractors and mechanical contractors should visit the South Carolina Contractor’s Licensing Board for information and requirements for licensing.

If you are a specialty contractor, you will be required to have a residential specialty contractor’s license if the job will cost the customer over $200. Examples of specialty contractors are electricians, plumbers and HVAC technicians.

South Carolina is a little more lenient when it comes to their workers’ compensation insurance requirement. According to the South Carolina Workers’ Compensation Commission, all employers that employ four or more regular full-time or part-time employees are required to carry workers’ compensation insurance. Employees include adults, minors, and seasonal workers. Employers can purchase workers’ compensation insurance from any commercial insurer licensed by the state.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

Contractors and subcontractors in South Carolina are continuously exposed to risks from third-party lawsuits anytime they are at the jobsite. Employees working at the jobsite are also at risk for job-related injuries and illnesses. Vehicles and tools and equipment are also at risk at the jobsite, while in storage, or while in transit.

Here is What We Recommend:

General Liability

General Liability insurance from Fairbanks Insurance Brokers should be the bedrock of your business insurance package. Your general liability policy provides protection from everyday risks like:

  • Liability resulting from bodily injury or property damage to a third-party
  • Contractual liability that comes with contractual agreements you enter into
  • Products Completed Operations that protects your business if there are problems with products you produce or install.
  • Defense Costs – Any legal action that is filed against your business will require a response from an attorney. Your insurance company will pay to respond and defend your business.

Workers' Comp

Every South Carolina contractor who has four or more employees is responsible for their cost of work-related injuries or illnesses unless the business has a workers’ compensation policy in place. Your state department of labor will require you to carry this important coverage and will hit your business with some penalties if you ignore the rules.

Commercial Auto

Since personal auto policies generally exclude most business vehicles from coverage and do not offer limits high enough to protect your business, every business with business vehicles should have a commercial auto policy in place. Generally there is no limit on the number of vehicles to be covered and most carriers will offer limits up to $3 million.

Tool Coverage

All South Carolina contractors should consider the cost of repairing or replacing their tools and equipment in the event they are damaged or stolen. Inland Marine insurance is the policy used to affordably protect your tools and equipment and your employees’ tools as well.

Surety Bonds

In most cases, a surety bond is required by licensing boards, commercial customers, government organizations and other parties that you do business with. It’s important to understand that a surety bond is not insurance but more like a line of credit that is available if because of your business operation, a customer must redeem it.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.


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