All businesses face risk, whether a company is newly established or has been around for a hundred years.
This is precisely why businesses, especially in 2024, need insurance. Whether you are a South Carolina entrepreneur or are venturing into a new business niche, you need protection against theft, fire, and other unforeseen events.
Not to mention, you also need extra insurance against severe weather events like hurricanes and flooding.
Keep reading to learn everything you need about business insurance in South Carolina and how it can help your business overcome unexpected obstacles.
Do You Really Need Business Insurance?
In a word? Yes. Owning a business in South Carolina can be an incredible experience, but things can sour quickly without business insurance. Without it, property damage, external lawsuits, and employee injuries can cripple your cash flow. It may even lead to you closing your doors for good.
Business insurance is a safety net, protecting your business from financial losses when disaster strikes.
Moreover, if you own a business in a specific industry, like construction, South Carolina law states that you must have specific insurance. For example, worker’s compensation insurance is mandatory for businesses with four or more employees.
If you are sued for any reason, your insurance can help cover legal costs, medical expenses, and repairs, depending on the situation.
Also, having business insurance builds your company’s reputation as a trusted provider/manufacturer/supplier, which goes a long way toward improving your image in the marketplace.
Types of Business Insurance in South Carolina
You can choose from several business insurance policies, depending on the risks you want to cover. These include the following:
General Liability Insurance
General liability insurance is recommended for most businesses in South Carolina. This is because it covers a wide range of risks, including customer injury and customer property damage. Your business will likely qualify for contracts and leases if you have general liability insurance.
You need general liability insurance coverage if you handle client assets or property or work closely with customers.
So, if a customer sustains an injury at your business premises, your general liability insurance policy will help pay for medical costs. It will also help cover legal expenses if the customer decides to sue for damages.
If your business or employees accidentally damage someone’s property, your policy will cover the expenses to fix or replace it.
Furthermore, if your company product injures or harms a person, your policy will help pay for lawsuits and other losses your business may suffer.
General liability insurance policies can even help pay for legal costs if someone sues your business for intellectual property theft or libel.
Workers’ Compensation Insurance
As mentioned above, if your business employs four or more people, you must take out workers’ compensation insurance. This helps cover employee medical benefits and legal fees if an employee sues the business.
If an employee suffers a temporary disability, workers’ compensation benefits can help pay for some of the employee’s lost wages. If a fatality occurs on your business premises, the workers’ compensation policy will cover funeral costs and pay the deceased’s family some money.
Business Owner’s Policy
A business owner’s policy (BOP) combines general liability insurance and commercial property coverage in one plan.
You can get this insurance whether you rent or own a business premises. It is precious if you own a small business that works directly with customers and has expensive property.
Your BOP policy will cover the damage if a fire or theft affects your business. The same goes for financial losses related to customers.
Suppose you want to take out BOP insurance. In that case, your business must be inherently low-risk, employ fewer than 100 employees, have small premises, and make less than a million dollars in revenue annually.
Other Insurance Policies to Consider
You can also take out professional liability insurance for your business to cover lawsuits filed over poor work performance. If you work with credit card data and other sensitive information, you should also invest in cyber insurance. This will help recover financial losses due to cyberattacks and data breaches.
When to Take Out Commercial Auto Insurance
If you have business-owned vehicles, you must take out commercial auto insurance according to South Carolina law. The minimum requirements are:
- $ 25,000 bodily injury liability per person.
- $ 50,000 bodily injury liability per accident.
- $ 25,000 property damage liability per accident.
Moreover, if you own a trucking company, you may need additional insurance to ensure you comply with state regulations.
How Much Will You Pay for Business Insurance in 2024?
Not all business insurance policies are expensive. For instance, you will pay around $42 monthly for a general liability insurance policy. A BOP policy would be around $57 per month in 2024, while professional liability insurance costs would be $61.
Workers’ comp costs around $45, cyber liability insurance costs around $145, and commercial auto insurance costs $147 monthly.
Keep in mind that these premiums align with small business insurance needs.
How to Get Business Insurance in South Carolina？
It is easy to purchase business insurance in South Carolina. You could opt to contact an independent insurance agent. These agents represent several insurance companies and can give you the best rates and coverage for your business needs.
Alternatively, you could buy insurance directly from your preferred provider. You can do this via their website or by phone.
Additional Tips for Business Owners
Once you take out business insurance, schedule an annual policy review. Your business needs can and will change over time, so you will likely have to increase your coverage in the years to come.
Remember to choose a deductible your business can afford, but do not go too low. A higher deductible can lower your monthly insurance premium.
Protect your business by implementing the necessary safety measures. This will lower the likelihood that you have to claim from your policies.
Business Insurance Is a Necessity
If you are a business owner, you cannot afford not to have business insurance in 2024. Well-rounded insurance coverage will protect your business when needed and allow you to grow your brand in South Carolina.
