Can an employer self-insure for workers’ compensation?
Yes. Hundreds of employers in South Carolina are self-insured. In order to self-insure, an employer must apply, meet certain financial and other requirements, and be approved by the South Carolina Workers' Compensation Commission. An employer may self-insure as an individual organization, or as part of a group self-insurance pool or fund. Self-insured employers and funds are regulated by the Commission. They are required to maintain reinsurance and a surety bond or letter of credit in an amount specified by the Commission. Our Self-Insurance Division has more information.
Is there a published list of self-insured employers in the state?
No. SC Regulation 67-1515 prohibits the Commission from releasing any information concerning a self-insured or self-insurance fund other than confirmation that an employer is individually self-insured or is a member of a specific self-insurance fund, the effective date, and the name of the claims administrator.
Are all self-insured employers required to have specific excess insurance?
Yes. All self-insurers whether they are individual or funds must obtain a specific excess insurance policy in an amount determined by the Commission.
How often is an audit of a self-insured employer conducted?
There is no specific timetable for when an audit is conducted but they could expect to be audited every two to three years.
Is there a minimum time an employer has to be in business before applying to self-insure?
In order to self-insure, the employer must provide three years of financials as well as three years of loss runs.