Business Owners Policy South Carolina

If you run a small or mid-sized business in South Carolina, a business owners policy is likely the most cost-effective way to protect what you have built. A BOP bundles the two coverages most businesses need right away: commercial property insurance and general liability insurance , usually at a lower combined premium than buying each piece separately. For owners in Myrtle Beach, Conway, Georgetown, and across Horry County, understanding exactly what that bundle does (and does not) cover can mean the difference between a minor setback and a permanent closure.

This protects the physical assets your business depends on: the building (if you own it), your furniture and equipment, inventory on the shelves, and tools of the trade. If a kitchen fire destroys your equipment at a Myrtle Beach restaurant, or a burst pipe soaks your retail stock in Conway, commercial property coverage pays to repair or replace those items up to your policy limit. Most BOP property forms are written on an "all-risk" or "open-peril" basis , meaning losses are covered unless a specific exclusion says otherwise.

General liability pays when a third party, such as a customer, vendor, or passerby, claims your business caused them bodily injury or property damage. A tourist slips on a wet floor at your Grand Strand gift shop and breaks a wrist. A contractor accidentally cracks a client's countertop during an installation in Pawleys Island. General liability covers medical costs, legal defense fees, and any judgment or settlement up to your limit. Most small business owners carry at least $1 million per occurrence / $2 million aggregate , though higher-risk operations often need more.

This third piece is often overlooked until a business needs it. Business interruption (also called business income coverage) replaces lost revenue and covers ongoing expenses such as rent, payroll, and utilities when a covered property loss forces you to close temporarily. Along the South Carolina coast, where a single hurricane or tropical storm can knock out power for days and force mandatory evacuations, this protection is not optional for most owners. You can read more about how this coverage works on the business interruption insurance page.

Flood damage. Standard BOPs exclude flood, which is a serious exposure for coastal and low-lying businesses in Horry and Georgetown counties. Separate commercial flood coverage is available through the NFIP or private carriers.
Workers compensation. Required separately in South Carolina for most employers with four or more employees. A BOP does not satisfy that legal requirement. See our overview of workers comp insurance in South Carolina for specifics.
Commercial auto. Vehicles used for business purposes need their own commercial auto policy. A BOP covers property at your location, not vehicles on the road.
Professional liability (E&O). If your business provides advice, design, or professional services, errors and omissions claims are excluded from a standard BOP. Consultants, real estate professionals, and IT firms in particular need a separate professional liability policy.
Cyber liability. A growing exposure for any business that stores customer data. Most BOPs exclude cyber events entirely, so retailers, restaurants, and medical offices along the Grand Strand should add standalone cyber coverage.
Liquor liability. Bars, breweries, and event venues that sell or serve alcohol face a specific liability exposure that a standard BOP does not address.

Revenue. Most insurers cap BOP eligibility at annual revenues below $5 million to $10 million , depending on the carrier.
Location. A single, relatively small physical location is usually required. Businesses with multiple large locations often need a commercial package.
Industry class. Retail shops, service businesses, offices, small restaurants, and light contractors generally qualify. Heavy manufacturing, auto dealers, and certain contractor classes typically do not.
Building size. Many carriers limit BOP eligibility to buildings under 25,000 square feet.

Industry and business type. Restaurants and contractors pay more than accountants or consultants because the physical and liability exposures are higher.
Location. Coastal South Carolina properties carry wind and storm risk that raises property premiums, particularly in Myrtle Beach, North Myrtle Beach, and Pawleys Island. Carriers factor in proximity to the coast, local building codes, and construction type.
Property value. The more equipment, inventory, or building value you need covered, the higher the property portion of your premium.
Revenue. General liability rates are often tied to gross sales or payroll, so faster-growing businesses pay more.
Claims history. A clean loss history keeps rates down. Prior claims, especially liability claims, can raise your premium significantly or limit carrier options.
Deductible choice. Choosing a higher deductible lowers your annual premium. Just make sure you can absorb that deductible out of pocket if a loss occurs.

Equipment breakdown. Covers mechanical or electrical failure of key equipment (HVAC, refrigeration, computers) that a standard property form excludes because it is not a sudden external event.
Hired and non-owned auto. If employees run errands in personal vehicles for your business, this coverage fills a gap that your commercial auto policy may not. See details on the hired and non-owned auto page.
Cyber liability endorsement. A lightweight cyber add-on is available from some BOP carriers for businesses with modest data exposure. Larger operations need a standalone policy.
Outdoor signs. Many property forms limit or exclude freestanding signs. A quick endorsement fixes that.
Accounts receivable and valuable papers. Covers the cost to reconstruct financial records and receivables if they are destroyed in a covered loss.
Employee dishonesty. Protects against theft by your own staff. Worth considering if employees handle cash or have access to inventory.

Wind and hail exposure is real. Horry County and Georgetown County sit in a part of the state that sees direct hurricane and tropical storm threats most years. When you buy commercial property insurance here, pay close attention to whether your policy has a separate named-storm or wind/hail deductible . These deductibles are often expressed as a percentage of your insured value, such as 1%, 2%, or even 5%, rather than a flat dollar amount. On a building valued at $500,000, a 2% wind deductible means you absorb the first $10,000 of a wind claim yourself.