Insurance is a critical component of any contractor's business, and South Carolina has specific requirements that must be met. For example, contractors must provide proof of workers' compensation insurance if they employ at least four people. Additionally, some contractors are required to provide both general liability insurance and professional liability insurance.

South Carolina contractors' insurance generally includes general and professional liability coverage, property coverage, business interruption insurance, automobile insurance, and cyber insurance. Depending on the business, contractors may also need to purchase builder's risk coverage. A contractor's surety bond may also be required. Other coverages that may be beneficial include employment-related practices liability insurance and pollution coverage.

Contractors Insurance Costs in South Carolina

The cost of insurance for contractors in South Carolina depends on the type and amount of coverage needed, as well as the contractor's business size and individual risk factors. Some insurers provide customized packages that are tailored to match a contractor's unique needs, which can help minimize costs.

Basic general liability and professional liability policy for a small contractor doing residential projects may cost around $500 to $1,000 per year. For larger contractors with greater risk exposure, this figure can be much higher.

Surety bonds are typically costlier than insurance coverage. The cost of a surety bond is based on the contractor's credit score, financials, and experience. Depending on these factors, the cost may range from 1 to 15% of the total contract value.

Auto, property, and other specialized coverages are also priced based on the contractor's unique risk factors. It is important for contractors to work with a trusted insurance agent to make sure they have the coverage they need at an affordable rate.

We Have the Best Contractors' Insurance Policies In South Carolina

If you're looking for comprehensive insurance coverage for your business, look no further than Southern Insurance Group. We have been providing customized solutions to contractors throughout South Carolina for years, and we are committed to finding the best policies for our clients.

Our team of experienced insurance agents can help you secure the coverage you need at a competitive price. We also offer a wide range of additional services, such as risk management and claims resolution, to ensure that your business is fully protected. Contact us today for more information on what we can do for you.

Who Needs Contractors' Insurance In South Carolina?

In South Carolina, any contractor who works on public or private projects needs to have the necessary insurance. This includes:

Home builders and remodelers
HVAC contractors
Plumbers
Electricians
Roofers and siding installers
Carpenters and cabinet makers
Flooring installers
Painters and drywallers
Landscapers and gardeners
Paving contractors
Excavation contractors
Septic system installers
Masonry contractors
Swimming pool contractors
Environmental contractors

Other contractors, including those who work in specialized areas such as hazardous material removal and asbestos abatement, may also be required to carry insurance.

General Liability Insurance For South Carolina Contractors

General liability insurance is one of the most important coverages for contractors in South Carolina. This type of coverage provides financial protection from claims arising from third-party bodily injury or property damage. It can also cover medical expenses and legal costs associated with a lawsuit.

General liability insurance typically covers:

Accidents resulting in bodily injury
Damage to property and equipment
Advertising injuries, such as libel or slander
Legal fees associated with a lawsuit
Medical expenses for injured parties
Environmental damage resulting from a contractor's operations
Contractual liability arising from work performed by the contractor

South Carolina contractors' general liability insurance also provides coverage for property damage caused by faulty workmanship, as well as negligence claims from third parties. Overall, general liability insurance is one of the most important coverages for contractors in South Carolina. With this coverage, contractors can have peace of mind that they are financially protected in the event of a lawsuit or other claim.

Commercial Property Insurance for South Carolina Contractors

Commercial property insurance provides financial protection from losses resulting from damage to a contractor's physical assets. This coverage is typically used to cover any repairs or replacements needed due to fire, vandalism, windstorms, and other insured perils. If a contractor has business equipment on-site, such as tools or machinery, commercial property insurance can also protect it from theft and other losses.

Commercial property insurance typically covers:

Buildings, including those under construction
Tools, equipment, and machinery
Furniture and fixtures
Raw materials
Business interruption expenses

Depending on the limits of the policy, commercial property insurance may also provide coverage for debris removal and liability protection from claims resulting from damage to a third-party's property.

Workers' Compensation Insurance for South Carolina Contractors

In South Carolina, contractors must carry workers' compensation insurance if they have at least four employees. This type of coverage provides financial protection for employees in the event of a job-related illness or injury. It also covers medical expenses, wage replacement benefits, and legal fees associated with any claim.

With workers' compensation insurance, contractors can rest assured that their employees are protected and they won't have to bear the financial burden of an employee's injury or illness. This coverage is mandatory in South Carolina, so it's important for contractors to make sure they have the right amount of coverage in place.

Business Auto Insurance for South Carolina Contractors

The minimum liability limits for business auto insurance in South Carolina are $25,000 per person and $50,000 per accident. Contractors who use vehicles for their business operations must carry this coverage to protect themselves from any claims arising out of an auto accident. This type of coverage typically covers bodily injury, property damage, medical expenses, legal fees, and more.

Business auto insurance can also provide coverage for damage caused by collision, theft, vandalism, and other perils. In some cases, contractors may need to purchase additional coverages depending on the type of vehicle they are using for business-related activities.

South Carolina Contractors' Surety Bonds

A contractors' surety bond is a form of financial guarantee that ensures a contractor will fulfill their contractual obligations. It is typically required by the state or local government, and it can also be requested by clients. Contractors in South Carolina must carry surety bonds if they are performing public works projects.

Contractors' surety bonds provide protection to contractors in the event that they fail to fulfill their obligations under the contract. The surety company will pay out an agreed-upon amount to the project owner if a contractor fails to meet their contractual obligations as outlined in the bond agreement.

Professional Liability Insurance

Professional liability insurance provides financial protection from claims related to professional negligence or errors. This type of coverage is also known as errors and omissions liability insurance, and it can help contractors protect their business in the event of a lawsuit. Professional liability insurance typically covers legal fees, settlements, court costs, and other expenses associated with a claim.

General liability insurance typically does not cover claims related to professional negligence, so it's important for contractors in South Carolina to make sure they are carrying the right amount of coverage. This type of coverage is especially important if contractors are providing services such as engineering, accounting, or legal advice.

Business Owners' Policy

A business owners' policy, or BOP, is a package of coverages designed to provide financial protection for small business owners. This type of policy typically includes property insurance, liability insurance, and other optional coverages such as business interruption coverage.

Business owners' policies are a great option for contractors in South Carolina because they provide comprehensive coverage at a competitive price. This type of policy can help contractors protect their businesses from unexpected risks such as fire, theft, liability claims, and more.

Builder's Risk Insurance

Builder's risk insurance is a type of property insurance specifically designed to protect contractors from losses related to construction projects. This coverage typically includes protection against any damage caused by fire, theft, vandalism, and other perils. It also provides coverage for materials, equipment, and tools used in the course of the project.

This type of coverage is essential for contractors in South Carolina who are working on construction or renovation projects. Builder's risk insurance can help protect a contractor against any financial losses they may incur if their project is damaged, vandalized, or stolen.

Cyber Liability Insurance

Cyber liability insurance provides financial protection for businesses in the event of a cyber attack or data breach. This type of coverage can help contractors cover expenses related to recovering stolen information, repairing damaged systems, and restoring their reputation after an attack. Cyber liability policies typically also provide coverage for legal fees associated with defending against any claims from affected customers.

Contractors in South Carolina who are using technology to store and manage sensitive customer data should consider carrying this type of coverage. Cyber liability insurance can help mitigate the financial risks associated with a cyber attack or data breach and protect against any potential losses.

Compare South Carolina Contractors' Insurance Quotes

Southern Insurance Group can help contractors in South Carolina find the right insurance coverage at a competitive price. Our experienced team of agents can help you compare quotes from multiple carriers and find the policy that's right for your business.

Contact us today to get started with a free quote comparison and see how much you could save on contractors' insurance. We look forward to helping you find the coverage your business needs.