Why is Workers Comp so expensive in South Carolina?

2 Replies

Hi BP!

We are currently trying to find affordable workers comp for a contractor who serves as the property manager for a property we own in South Carolina. I have not been able to find any policies that are under $2800 annually. I have asked property owners who own in neighboring states and learned that workers comp is much cheaper across state lines ($900 annually or lower). Does anyone have insight into why workers comp is so high in South Carolina? I'm wondering if I'm missing something.

Thank you!

It’s probably not that the Rate is that high (the %of payroll charged), or it may actually be, states vary widely in rates.  It could be a minimum policy premium issue instead though.  It doesn’t really matter what neighboring states are.  State fort reforms dealing with workers comp lowered our rates significantly about 10 years ago.

I deal a lot with workers comp in SC. Rates are higher when someone does lots of different things (plumbing, electrical, etc) than if they just focus on one thing. They are also generally higher when there is no previous insurer meaning you get better rate experience when you've already had a policy in force so naturally it'll be higher the first year.

However, I just wrote E&O, GL, and WC for a property management group with revenues around $150k/yr and the total package for everything was under $2500. So it's affordable you might just be looking in the wrong places.