Workers' comp for trucking businesses in South Carolina is more complex than for most industries. The presence of owner-operators, leased drivers, and company employees creates a layered employment picture that standard workers' comp policies are often not designed to handle cleanly. Misunderstanding the coverage obligations for each worker category — or assuming a single policy covers everyone — can leave a trucking company exposed to claims that have no coverage. This video explains the specific workers' comp challenges for SC trucking operations and what proper coverage looks like.
Why owner-operators and leased drivers create workers' comp coverage gaps for SC trucking companies
How the borrowed servant doctrine can make a motor carrier responsible for an owner-operator's injury
The difference between workers' comp for company drivers vs. independent contractors in trucking
How occupational accident policies compare to workers' comp for owner-operators
What SC trucking businesses need to verify before each policy renewal to close coverage gaps
The core workers' comp challenge for South Carolina trucking companies centers on owner-operators. An owner-operator is an independent contractor who owns their truck and is paid per load or per mile. Because they are independent contractors rather than employees, they are typically not covered under the motor carrier's workers' comp policy. If an owner-operator is injured while working under your authority and they do not have their own workers' comp or occupational accident coverage, they may pursue a claim against you under the borrowed servant doctrine — arguing that the degree of control you exercised over their work created an employment relationship. SC courts have found motor carriers liable in these situations. The safeguard is requiring all owner-operators to carry occupational accident insurance or their own workers' comp before operating under your authority.
Company drivers — W-2 employees who drive trucks owned by the motor carrier — are straightforward: they must be covered under the employer's South Carolina workers' comp policy. Leased drivers are more complex. When a trucking company leases drivers from a staffing agency or driver leasing company, the question of who is responsible for workers' comp depends on the leasing arrangement. Under a properly structured leasing agreement, the leasing company provides workers' comp coverage for leased drivers. But if the agreement is ambiguous, or if the leasing company's coverage lapses, the motor carrier may be treated as the employer for workers' comp purposes. SC trucking businesses should verify the workers' comp arrangements for every driver category before and during the policy period.
For owner-operators who work as independent contractors, two coverage options exist: their own workers' comp policy (typically available only if they have at least one employee or elect individual coverage in their state), or an occupational accident policy. Occupational accident insurance is not workers' comp — it does not provide the statutory benefits required under South Carolina's workers' comp law. It is a voluntary coverage that pays benefits for injury, disability, and death based on the policy terms. It is typically less expensive than workers' comp and more accessible for individual owner-operators, but it provides different and generally narrower protection. For SC motor carriers, requiring proof of occupational accident coverage from owner-operators is a minimum risk management practice; understanding the limitations of that coverage compared to workers' comp is important for both parties.
Owner-operators operating under your authority without coverage create potential liability under borrowed servant doctrine
Company drivers must be covered under your SC workers' comp policy without exception
Leased driver coverage depends on the leasing agreement — verify workers' comp responsibility in writing
Require proof of occupational accident or workers' comp from every owner-operator before dispatch
Review coverage arrangements at every policy renewal as driver mix and contractor relationships change
Owner-operators who operate as sole proprietors with no employees are generally not required to carry workers' comp under SC law, though they may elect to cover themselves. However, the motor carrier they work under has a strong risk management interest in requiring owner-operators to carry either workers' comp or occupational accident coverage before operating under their authority. Without it, an injured owner-operator may pursue the motor carrier as a responsible party.
A South Carolina workers' comp policy covers employees whose employment is principally located in SC. For drivers who regularly operate in multiple states, your policy should include an "All States" or "Other States" endorsement that extends coverage to states where your drivers may be injured. Without this endorsement, a driver injured while working in a state not listed on the policy may find themselves without coverage under SC's workers' comp law and outside the other state's system.
Workers' comp and occupational accident insurance are separate products that do not directly interact. Workers' comp provides statutory benefits to employees under South Carolina's Workers' Compensation Act. Occupational accident insurance is a voluntary contract that provides benefit payments defined by the policy. If an owner-operator has occupational accident coverage and is injured, their benefits come from that policy. If they are determined to be an employee rather than an independent contractor, the motor carrier's workers' comp policy would be implicated — which is why proper worker classification documentation matters.
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