South Carolina Contractor General Liability After the 2024 Tort Reform Act (2026 Update)

By Winfield Lee, Licensed Independent Insurance Agent · Georgia License #230978 · Updated 2026

The short answer

South Carolina passed comprehensive tort reform in April 2024 that repealed joint-and-several liability for most construction defect litigation and shortened the statute of repose. That was supposed to relieve pressure on the SC contractor GL market. Instead, most standard carriers pulled out of SC residential construction between mid-2024 and 2026, and premiums doubled for the contractors that remained. Non-renewals still hit weekly.

Where SC contractors are getting written in 2026: specialty surplus lines carriers (Markel, Great American, Crum & Forster, RLI, IFG, Colony) plus a handful of regional standard carriers (Builders Mutual, FCCI, ICW Group) that never left. Almost nothing available in the admitted market for residential construction defect exposure. Commercial contractors have more options but still see 20-40% rate increases at renewal.

What the 2024 SC Tort Reform Act actually changed

1. Joint-and-several liability abolished for most cases

Pre-2024: a contractor 5% at fault could be pursued for 100% of a judgment if co-defendants were insolvent. That is why SC construction defect claims spiraled — plaintiffs targeted whichever contractor still had solvent insurance. Post-2024: contractors pay only their proportional share of fault, with exceptions for intentional acts and product liability.

2. Statute of repose shortened

Pre-2024: SC allowed 8 years from substantial completion to file a construction defect claim, with extensions available. Post-2024: 8 years hard cap. No extensions for latent defects discovered after year 8.

3. Damages caps clarified for third-party contractors

Third-party contract-based indemnification claims now have clearer damages allocations, reducing surprise indemnity awards against subcontractors.

Why premiums doubled anyway

Two things happened simultaneously:

Reinsurance re-priced 2020-2023 losses. SC carriers spent years absorbing losses from Hurricane Ian, Debby, Helene, and rising construction defect litigation. Reinsurance treaties renewed at 60-100% rate increases — that filters directly to primary rates.
Standard admitted carriers exited to reduce catastrophe exposure. Travelers, Hartford, Cincinnati, and Liberty Mutual materially pulled back residential contractor GL in coastal SC. Kingstone and Homesite non-renewed en masse. That pushed everyone into surplus lines, which charge 40-70% more for equivalent coverage.

2026 SC contractor GL market map

Who is writing residential construction

Markel (surplus). Deep appetite for SC residential GC. Handles roofing, framing, siding with proper endorsement structure.
Great American (surplus). Selective on established GCs with 5+ years clean loss. Preferred trades.
Crum & Forster (surplus). Strong on custom homebuilders and specialty trades.
Builders Mutual (admitted). Still writing SC contractors selectively. Best rates when they take the account.
ICW Group (admitted). Selective. Requires clean loss history and formal safety program.

Who is writing commercial construction

Westchester (Chubb) — commercial GL up to $1M/$2M.
FCCI — SE regional carrier still active in commercial contractor.
Nautilus, Hallmark, Colony — surplus lines for larger commercial and mixed-use.

What SC contractors need to bring to the underwriter

Complete 3-year loss runs from every prior carrier.
Documented Job Safety Program with written procedures for scaffolding, ladders, electrical isolation, subcontractor management.
Current COI collection procedure for every 1099 sub — carrier will ask.
Payroll splits by class code (5645 carpentry, 5551 roofing, 5606 supervisor, 5183 plumbing, etc.). Wrong splits kill the quote.
Signed AIA-style contracts with clear scope-of-work and indemnity clauses that comply with the 2024 SC reform framework.

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SC contractor GL questions

Did the 2024 SC Tort Reform Act make contractor insurance cheaper?

No. It made claims outcomes more predictable, but premium relief has not materialized in 2026 because reinsurance re-priced simultaneously and standard admitted carriers exited coastal SC. Most SC contractors saw 20-50% rate increases at 2025-2026 renewals.

What is the SC construction defect statute of repose now?

8 years from substantial completion. The 2024 reform removed prior discovery-rule extensions, so latent defects discovered after year 8 are barred.

Do I need surplus lines insurance for my SC contracting business?

Probably. Most residential SC contractor GL in 2026 is placed in the surplus lines market because standard admitted carriers have exited or become highly selective. Surplus lines premiums run 40-70% higher for equivalent coverage.

Does the SC tort reform affect commercial contractor GL differently than residential?

Yes. Commercial and industrial contractor claims (bar fights, slip and falls, third-party bodily injury) were less affected by joint-and-several rules than construction defect litigation. Commercial contractor rates are up 20-30% versus 40-70% for residential.

Can I use a standard national carrier like Travelers or Liberty Mutual for SC contractor GL in 2026?

For most residential trades and coastal exposure, no. Those carriers have materially reduced SC construction appetite. Some commercial-only accounts still get placed with standard carriers. An independent agent should give you a straight answer within one call.

For general information only. Not a quote or contract of insurance. Coverage subject to underwriting, policy terms, and carrier appetite. Rates cited are typical 2026 SE market ranges and are not guarantees for any specific business.