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Directors and Officers (D&O) Insurance in South Carolina

South Carolina requires an unlimited general undertaking from a director before the corporation advances defense expenses, though the undertaking need not be secured and the company need not assess the director’s ability to repay. These are South Carolina business-corporation provisions; check the named insured’s form and incorporation state, then compare the advancement mechanics with the policy. 1

What Is Directors And Officers?

D&O insurance can help pay covered defense costs and losses from claims against company leaders over management decisions. If your organization has a board or executives, check whether the company itself is insured and whether legal bills reduce the limit. Read the national Directors and officers guide.

What to Watch for in South Carolina

  • Advancement Requires an Unlimited Undertaking

    A South Carolina director seeking an advance must give a written affirmation and an undertaking to repay; the undertaking is an unlimited general obligation, though it need not be secured and the corporation need not evaluate ability to pay. Ask whether the policy advances costs without waiting for that corporate process. 1

  • Check the Conduct and Claim Type

    Section 33-8-510 applies different indemnity standards to non-derivative and derivative cases and restricts indemnity after specified adverse findings; a court may order limited relief. Ask the broker to walk through the proposed treatment of derivative expenses, settlements, and any adjudicated liability. 1

  • Board Approved Shareholder Distributions

    South Carolina prohibits a business corporation from making a shareholder distribution if it would be unable to pay debts as due or its assets would fall below liabilities plus specified senior liquidation preferences. If your board approved a dividend or share repurchase, ask how the policy treats claims challenging that decision. 2,1

Who Regulates Insurance in South Carolina

South Carolina Department of Insurance

The South Carolina Department of Insurance licenses and regulates insurance companies and producers and accepts complaints involving entities it licenses and policies incepted in South Carolina. Its consumer page links to the online complaint form and explains limits on the Department’s authority. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 6% blended broker premium tax: 4% state plus 2% municipal SCDOI’s January 2026 instructions set a 6% blended surplus-lines broker premium tax: 4% state and 2% municipal; the Department collects both and the Municipal Association of South Carolina allocates the municipal share. The filing system also asks brokers to identify one to three insurers that declined the indicated coverage; check the policy notice for any guaranty-association disclosure. 6,7

Providers With Documented State Licenses

These providers publish a national listing for Directors and officers; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in South Carolina. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CoalitionCoalition Insurance Solutions, Inc.Insurance producer, Surplus-lines broker · checked 2026-09-28Coalition’s license page lists producer and surplus-lines licenses for Coalition Insurance Solutions, Inc. in all 50 states and the District of Columbia. The page separately lists insurers; this record covers the brokerage entity only. 9
  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 10
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 13
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 14

Questions to Ask Before You Buy in South Carolina

  1. Will a South Carolina corporation require the director’s unlimited general undertaking before advancing defense expenses, and does the policy advance separately?
  2. How does the policy handle derivative claims, court-approved indemnity, or an adverse finding of liability to the corporation?
  3. If the alleged act involved a dividend or share repurchase, what policy terms apply to the statutory distribution claim?
  4. Is each entity a South Carolina business corporation, and what law governs the other insured organizations?

Directors And Officers in South Carolina: FAQ

Does South Carolina require a director to give an undertaking for expense advances? 1

Yes. Section 33-8-530 requires an affirmation and an undertaking to repay; the undertaking is an unlimited general obligation but need not be secured. Ask whether policy advancement has separate conditions. 1

Does South Carolina law authorize D&O insurance beyond corporate indemnification? 1

Yes. Section 33-8-570 authorizes a corporation to purchase insurance for covered capacities even where it could not indemnify the same liability. The statute does not determine policy coverage. 1

Directors And Officers in Other States

Other Coverage in South Carolina

Sources

  1. South Carolina Code, Title 33, Chapter 8, Directors and Officers. South Carolina Legislature; §§ 33-8-510, 33-8-520, 33-8-530, 33-8-550, 33-8-560, and 33-8-570. Accessed 2026-09-28.
  2. South Carolina Code, Title 33, Chapter 6, Shares and Distributions. South Carolina Legislature; § 33-6-400(c)–(e): insolvency and asset tests for distributions, including repurchases. Accessed 2026-09-28.
  3. south-carolina insurance regulator. State insurance regulator; Official home and consumer services pages describe regulator scope. Accessed 2026-09-28.
  4. SCDOI Online Services. State insurance regulator; General Public offers Licensee Lookup for licensed individuals and insurers. Accessed 2026-09-28.
  5. SCDOI Consumer Services. State insurance regulator; Complaint process and stated authority covers licensed entities and policies incepted in SC; online complaint form is linked. Accessed 2026-09-28.
  6. 2026 Surplus Lines Filing Instructions. South Carolina Department of Insurance; Pages 1–2, January 26 2026 memo: 6% blended rate, 4% state plus 2% municipal; DOI collects both and MASC allocates municipal portion. Accessed 2026-09-28.
  7. 2026 Surplus Lines Filing Instructions. South Carolina Department of Insurance; Pages 1–2, Jan. 26, 2026 instructions: broker filing due-diligence field requires one to three named insurers declining the indicated coverage. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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