Workers' Compensation Insurance for Restaurants in South Carolina

By Brad Davis, CIC (July 30, 2025)

If you own or manage a restaurant in South Carolina, you already know there's a lot to juggle—inventory, scheduling, health inspections, and the occasional fryer fire. But one thing that often gets overlooked until there's a problem? Workers' Compensation Insurance.

It might not be as exciting as creating the perfect menu, but Workers' Comp is one of the most critical coverages your restaurant can carry. Not only is it required by South Carolina law in many cases, but it also protects your team and your business when workplace injuries happen—which they sometimes do, even in the cleanest kitchens.

In this post, we'll break down:

• When South Carolina requires Workers' Comp coverage

• Why it matters for restaurant owners and employees

• How a safe work environment helps keep your premiums low

• What steps you can take today to protect your restaurant

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What Is Workers' Compensation Insurance?

Workers' Compensation (or Workers' Comp) provides wage replacement and medical benefits to employees who are injured or become ill due to their job. It's designed to:

• Help injured employees get back on their feet

• Cover medical expenses and lost wages

• Limit legal liability for business owners

For restaurants, this can cover anything from a line cook burned by hot oil to a server who slips on a wet floor. Without Workers' Comp, those claims could come straight out of your pocket – or worse, end up in a costly lawsuit.

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When Is Workers' Comp Required in South Carolina?

In South Carolina, Workers' Compensation coverage is required by law for most businesses with four or more employees.

📜 South Carolina Law Reference:

According to the South Carolina Workers' Compensation Act (Title 42 of the South Carolina Code of Laws), employers with four or more employees (full-time or part-time) are generally required to carry Workers' Comp insurance.

This includes:

• Restaurant owners with waitstaff, chefs, dishwashers, and hostesses

• Franchise operators managing multiple locations

• Catering businesses and food trucks with hired help

Exceptions:

There are a few exemptions:

• Sole proprietors with no employees

• Certain agricultural businesses

• Casual employees not working in the regular course of business

But for 99% of restaurant operations in SC, Workers' Comp is a legal requirement.

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Why Is Workers' Comp Important for SC Restaurants?

1. Protects Your Employees

Restaurants are fast-paced environments where injuries can happen:

• Burns, cuts, and kitchen accidents

• Slips and falls in the dining area or dish pit

• Heavy lifting injuries from stock rooms or delivery

Workers' Comp helps your employees get medical treatment and recover financially—without worrying about whether they'll be able to pay bills while they're off the job.

2. Protects You as the Owner

Without Workers' Comp, you could be held personally liable for workplace injuries. That means paying out of pocket for medical bills, lost wages, legal fees, or settlements.

Workers' Comp helps prevent those scenarios and keeps you compliant with state laws—avoiding penalties and fines from the South Carolina Workers' Compensation Commission.

3. Gives You a Hiring Advantage

Offering Workers' Comp can help attract better employees who want to know they're protected. It also shows you take their safety seriously.

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How Claims Affect Your Premiums: Understanding the Experience Mod

Many restaurant owners don't realize that Workers' Comp premiums aren't just based on payroll—they're also influenced by your claims history.

The key metric here is your Experience Modification Rate (EMR or "mod").

What is an Experience Mod?

• A mod of 1.00 is average.

• If your mod is below 1.00, you'll pay less than the average business.

• If it's above 1.00, you'll pay more—sometimes significantly more.

What Affects Your Mod?

• Number and severity of past claims

• Frequency of small, preventable injuries

• How quickly injured workers return to work

A safer workplace means fewer claims. Fewer claims mean a lower mod – and that means more affordable Workers' Comp premiums year after year.

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Create a Safer Restaurant = Save on Insurance

Investing in a safer workplace doesn't just help your team – it directly impacts your bottom line. Here's how to create a safety-focused culture in your restaurant:

✅ Tips to Improve Safety and Reduce Claims:

• Train employees regularly on safety procedures, from knife handling to spill response

• Require non-slip shoes for all kitchen and front-of-house staff

• Keep first aid kits stocked and accessible

• Make sure all grease traps and hoods are cleaned regularly

• Conduct monthly safety walk-throughs

• Use checklists for opening and closing procedures to reduce missed hazards

• Encourage a report-it-now culture – employees should feel safe reporting near misses or unsafe conditions

The more proactive you are, the more you protect your team and your premiums.

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What Happens If You Don't Carry Workers' Comp?

If your restaurant is required to carry Workers' Comp and you don't, the consequences can be severe:

• Fines from the South Carolina Workers' Compensation Commission

• Stop-work orders

• Personal liability for workplace injuries

• Difficulty hiring or retaining employees

• Higher insurance rates down the road once you do apply

It's simply not worth the risk – especially when affordable policies are available for restaurants of all sizes.

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Get the Right Workers' Comp Coverage for Your Restaurant

Every restaurant is different. Whether you're running a fine dining spot in Charleston, a beachfront café in Myrtle Beach, or a food truck in Columbia, your Workers' Comp needs are unique.

At Davis Insurance Associates, we'll help you:

• Understand SC Workers' Comp requirements

• Find the right coverage for your size and staff

• Bundle with other policies like General Liability and Property Insurance

• Explore premium-saving strategies like safety credits or return-to-work programs

We work with top-rated carriers to offer competitive pricing for restaurants across South Carolina.

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Ready for a Workers' Comp Quote?

If you're not sure whether you're properly covered—or want to see if you're overpaying—reach out today.

Let us help you protect your employees, lower your risk, and stay compliant with SC law.

📍 Based in Myrtle Beach, serving all of South Carolina & North Carolina
📞 Call us: (843) 213-0000
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