Small businesses in South Carolina need a wide variety of South Carolina business insurance policies depending on their needs. That’s why business insurance costs are hard to predict. One business may need five different policies or more, while another might only need one policy that offers all of the coverage it needs.

Even similar businesses will have varying business insurance costs, because no two businesses are exactly alike. Two stores that sell similar products might still pay vastly different amounts for their business insurance, depending on the size of the companies and several other variables.

To get accurate quotes for business insurance in South Carolina, enlist the help of a local independent insurance agent. Independent insurance agents in South Carolina aren’t tied to a single carrier. They can get quotes from multiple insurance companies so you can find quality coverage that also meets your budget.

How Much Does Business Insurance Cost in South Carolina?

There are 418,000 small businesses in South Carolina. The vast majority of these small businesses need some kind of business insurance, whether it’s a home-based business insurance policy for a sole proprietor working out of their home, or a comprehensive business insurance program for a multi-location restaurant or retail establishment.

Last year, nearly $6 billion in commercial insurance claims were paid on behalf of small businesses in South Carolina.

The size of your business and the types of policies you need to cover your unique risks are the biggest predictors of how much your South Carolina business insurance will cost. A variety of variables that are unique to your business help determine how risky you are to insure, and consequently how costly your insurance will be.

To determine the types and amounts of coverage that you need, your insurance agent will evaluate several factors, such as:

The more risks you face across your business, whether they are property risks or liability risks, the more your business insurance will cost in South Carolina.

How Much Does Business Car Insurance Cost in South Carolina?

Any South Carolina business that owns vehicles needs commercial auto insurance to protect itself from the large financial losses that can result after a crash. Your business will be held financially accountable for any damage caused by one of your vehicles, and you will have to pay to repair other cars as well as your own vehicle. You’ll also have to pay for the medical expenses for anyone who is injured.

It’s also likely that you’ll be sued for additional damages. Lawsuits are costly, and without appropriate insurance coverage, your assets could be devastated.

Business car insurance costs in South Carolina can vary significantly from one business to the next. A company with a fleet of trucks will pay more than a small business with a few cars used for sales calls or deliveries.

Insurance companies assess risk and calculate rates according to a variety of factors that are unique to your business. The insurance company looks at what the vehicle is used for, the size and weight of the vehicle, the number of miles the vehicle is expected to travel each year, and even the items that are being transported.

The amount of coverage you need also affects what you pay for business auto insurance in South Carolina. Keep in mind that you may not need the same coverage for every vehicle.

Because each insurance company has its own method for determining costs, it pays to compare rates before purchasing a policy. That way you can be sure you are getting the coverage you want at a competitive price.

How Much Does Business General Liability Insurance Cost in South Carolina?

Business general liability insurance, or commercial general liability (CGL) insurance, is one of the basic building blocks of any small business insurance program in South Carolina. It protects you from negligence claims and lawsuits.

So if your business is responsible for damaging someone’s property (e.g., a waitress in your restaurant spills coffee on a customer’s laptop), or if someone is injured because of your business (e.g., a customer trips on a wet floor and breaks an ankle), your CGL policy helps you pay for damage. It also helps you pay for your legal expenses if you’re sued.

The cost of CGL insurance will vary significantly among businesses. On average, small businesses might pay between $300 and $5,000 per year. But your premium depends on the unique characteristics and risk factors of your business. Some of the factors that contribute to your premiums include:

• The gross sales of your business
• The gross payroll and number of employees
• The size of your commercial premises
• Industry or SIC code for the business
• The location of your business
• Your prior liability claims experience
• The length of time you’ve been in business

Low-risk businesses pay less for business liability insurance in South Carolina than high-risk businesses. You can assume that a business like a construction firm will pay more for CGL coverage than an accounting firm. That’s because, in general, the risk of injury to someone at a construction site is far greater than in an accountant’s office.

Another factor that affects your cost is the amount of coverage that you need. A business that needs a $1 million coverage limit will pay less than a business that needs $2 million or more in coverage. An independent insurance agent in South Carolina can help you determine how much coverage you need to adequately protect your assets.

How Much Does Health Insurance Cost for a Small Business in South Carolina?

According to a study by the Kaiser Family Foundation, in 2019, the average annual health insurance premiums for businesses in the US were $7,188 for single coverage, and $20,576 for family coverage.

The average annual premium for family coverage for covered workers in small firms was $20,236, while the average annual premium for family coverage for covered workers in large firms was $20,717.

Average annual premiums for family coverage for covered workers

Health insurance premiums in South Carolina are lower than the national average, which is great news for South Carolina business owners when compared to business owners in other states.

• Average amount spent per year on healthcare coverage by South Carolina businesses: $878,428
• Ranked 32nd for highest medical insurance costs in the US
• Average annual cost of health care in South Carolina: $5,557/person or $15,506/family

But like with any type of business insurance, health insurance rates are highly variable among different companies and across different industries. Health insurance premiums in South Carolina will vary based on the industry, the size of the business, the demographics of the workforce (e.g., older workers vs. younger workers, etc.), and the types of health plans and options that are available in your area.

A local independent insurance agent can help you find suitable coverage at a competitive price.

How Much Does Home Business Insurance Cost in South Carolina?

If you operate your South Carolina small business out of your home, you may need to purchase some type of home-based business insurance.

A typical homeowners insurance policy limits coverage for office equipment to around $2,500. That's not nearly enough to replace a computer, printer, phones, desk, fax, scanner, or other equipment or supplies you need for your business. And your homeowners policy will not cover business liability, loss or damage of business records, or damage caused by business interruption.

Home-based business owners have several business insurance options, and each comes with a different cost.

1. An endorsement to your homeowners insurance policy can provide more coverage for your home-based business. This option is viable for one-person businesses without a lot of valuable equipment or business-related visitors. It will typically add about $2,500 in business equipment coverage as well as some additional liability protection at an affordable price.
2. Some insurance companies offer a specialty policy for in-home businesses. An in-home business policy includes certain features of business insurance policies designed for larger firms, but sometimes with much lower policy limits. A typical in-home business policy will provide $10,000 of business property coverage and a liability coverage limit typically between $300,000 and $1 million. It may also provide limited coverage for loss of valuable documents, accounts receivable, off-site business property, and use of equipment.
3. A business owners policy (BOP) is a type of business insurance designed for small businesses. It combines property, liability, and business interruption coverage into one convenient and affordable package policy. It is often recommended for home-based business owners who need more than $10,000 of business property coverage, as well as liability coverage for customer injuries and business interruption coverage.

Each of these options has a different cost associated with it. A homeowners insurance endorsement is the most affordable, but offers the least amount of coverage.

If you need to purchase a business owners policy for your South Carolina home-based business, it probably won’t break the bank either. On average, a BOP for a home-based business might cost only around $300 per year. Your cost will depend on the value of your business-owned property and how much coverage you need to make sure it’s all covered.

How an Independent Agent Can Help In South Carolina

Local independent insurance agents work hard for South Carolina small business owners. They’re never tied down to a single insurance company, so they can get business insurance quotes from the insurance companies that offer the best coverage for your particular situation.

When you contact an independent insurance agent in South Carolina, you’ll have access to more cost and coverage options than you’d get anywhere else. And your agent will provide the personal advice and service you need whenever your needs change, or when you have to file a claim.