How Lack of Workers’ Compensation Insurance Complicates Claims for South Carolina Employees

You go to work every day expecting to do your job and come home safely. You also have a reasonable expectation that if you do get hurt while working, there is a system in place to protect you. That system is called workers’ compensation, and it’s a promise between an employer and an employee. It’s supposed to be your safety net.

But what happens when you get injured, and you discover that your employer broke the law and never had that insurance? Suddenly, the safety net you thought was there is gone. This is a frightening and stressful situation that leaves you with medical bills piling up and no income. 

What Happens When Employers Fail to Carry Workers’ Compensation Insurance?

South Carolina law requires most employers with four or more employees to carry workers’ compensation insurance, covering full-time, part-time, and seasonal workers. This ensures employees receive medical treatment and wage replacement without needing to sue their employer. However, some employers may not follow the rules or fall under exemptions, such as agricultural operations or businesses with fewer than four employees. 

When an employer fails to carry required insurance, the system breaks down, leaving injured workers in a difficult position. This is when the guidance of South Carolina workers comp attorneys, such as from Stewart Law Offices, becomes vital to deal with the difficult challenges that arise when an employer is uninsured. They have been in business for 30 years and have multiple locations in the state. By seeking professional legal help, injured workers can better understand their rights and options for pursuing fair compensation.

Why Some Employers Don’t Carry Workers’ Compensation Insurance

Even though it’s required, some employers choose not to carry workers’ compensation insurance. Reasons may include:

• Trying to save money
• Not understanding the law
• Believing they don’t need it because they have few employees
• Misclassifying workers as independent contractors

In South Carolina, employers with fewer than four employees may be exempt from the insurance requirement. But even small businesses can be held responsible if they break the rules or mislead workers.

What Are Your Legal Options if Your Employer is Uninsured?

Even though the process is harder, it is important to know that you still have rights, and you are not out of options. In fact, in some ways, your employer has put themselves in a very bad legal position.

You Can File a Lawsuit Directly Against Your Employer

Because your employer failed to provide workers’ compensation insurance, you lose the protection that the system gives them. The law says that they can now be sued directly in a personal injury lawsuit, just like any other person or company that caused you harm. In this lawsuit, you can demand full compensation for all of your losses.

You Can Pursue a Third-Party Claim

Often, a workplace injury is caused by the negligence of someone other than your direct employer. This is very common on construction sites where many different companies are working. 

A third-party could be the general contractor, a different subcontractor, or the company that made a defective piece of equipment. Your attorney can file a separate lawsuit against these parties.

You Can File a Claim with a Special State Fund

South Carolina has created a safety net of last resort called the Uninsured Employers’ Fund (UEF). This is a special fund that was created to pay benefits to injured workers whose employers illegally failed to carry insurance. The process of getting benefits from the UEF is very complex and has specific legal requirements. 

Your attorney, such as Brent P. Stewart from Stewart Law Offices, will know how to handle the process of filing a claim with this special fund, which can be a vital source of recovery when the employer has no other assets.

You Can File a Claim SC Workers’ Compensation Commission

Even if your employer doesn’t carry workers’ compensation insurance, you may still be able to file a claim with the South Carolina Workers’ Compensation Commission (SCWCC). The Commission can investigate and determine whether your employer should have had coverage. If they were required to carry insurance and failed to do so, they may be held financially responsible for your injury. 

In these cases, the employer—not an insurance company—must pay for your medical bills, lost wages, and other benefits. This can lead to delays, disputes, and challenges in getting the support you need.

What Compensation Can You Receive?

If your employer doesn’t carry workers’ compensation insurance, you may still be able to recover medical expenses, lost wages, pain and suffering, permanent disability benefits, and legal costs. The exact amount depends on the nature of your injury, your job duties, and how the accident occurred. 

An experienced attorney can help assess your damages, explore all available legal options, and pursue fair compensation through direct lawsuits, third-party claims, or special state funds designed to protect injured workers when employers fail to provide proper coverage.

FAQs

What is workers’ compensation insurance, and why is it important?

Workers’ compensation insurance provides a safety net for employees who suffer work-related injuries or illnesses, covering medical expenses and lost wages.

What happens if my employer doesn’t have workers’ compensation insurance?

Without workers’ compensation insurance, employees may struggle to get their claims processed, leading to delayed or denied benefits, and may be left to cover medical expenses and lost wages out of pocket.

What are my rights as an employee in South Carolina if I’m injured on the job?

As an employee in South Carolina, you have the right to seek medical attention and file a workers’ compensation claim if you’re injured on the job. If your employer doesn’t have workers’ compensation insurance, you may have additional options for seeking compensation.

Conclusion

Discovering that your employer does not have workers’ compensation insurance after you have been seriously injured is a devastating blow. It takes away your easy path to recovery and forces you into a much more difficult legal battle. However, it does not take away your rights. 

By understanding your legal options, including your right to file a lawsuit and your ability to file a claim with the Uninsured Employers’ Fund, you can still fight for the compensation you need to heal and to provide for your family.