Can I exclude owners or officers from workers’ comp coverage in South Carolina?
You already know that workers’ comp is required in South Carolina if you have at least four workers. But, depending on how your business is organized, you might be allowed to exclude owners and certain officers from your workers’ comp policy.
Curious how it works? Here’s what you need to know.
First, your employees are covered.
First things first: all your full-time and part-time employees are automatically included in your policy. In South Carolina, there is no way for regular employees to opt out of coverage. (Makes things pretty simple.)
Is your business a corporation?
If your South Carolina business is organized as a corporation, your workers’ comp policy will automatically include corporate officers. Those officers are allowed to reject coverage, though. If they decide they don’t want to be covered, they’ll need to fill out and file the Corporate Officer’s Notice to Reject form. You should make sure that the form is forwarded on to your insurer. (Note that if you’re a Huckleberry customer, this whole process will be online. It’s all pretty fast and simple.)
Is your business a sole proprietorship?
If you operate your business as a sole proprietor, you’ll be automatically excluded from your workers’ comp policy—unless you indicate otherwise when you sign up for workers’ comp. If you decide you’d like to be covered after you purchase a policy, you can opt in by contacting your insurance company. Do know, though, that not every insurance company offers coverage for sole proprietors. (Also: workers’ comp is not a good substitute for life and health insurance policies.)
What about a partnership?
Business partners will be automatically excluded from your South Carolina workers’ comp policy—but they can get coverage by contacting your insurer.
Is your business a Limited Liability Company?
Just like sole proprietors and business partners, your LLC’s members will be automatically excluded from your workers’ comp policy. (But, like the other categories, they can obtain coverage by filling out a form with your insurer.)
Ready to go back to The Employer’s Guide to South Carolina Workers’ Comp Insurance?
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