South Dakota Workers Comp Insurance

With limited exceptions, every employer in South Dakota with one or more employee(s) is required by law to have a valid workers' compensation policy at all times. This "no fault" insurance not only provides injured workers with medical care and partial wage replacement, but also protects the policyholders from potentially damaging lawsuits. Although most companies in SD purchase a traditional commercial insurance policy, there are alternative methods of coverage which include licensing as a self insurer, gaining membership in a self insurance group, or obtaining coverage in the Assigned Risk Pool.

SD Workers Comp Insurance Specific Regulations

• Having any employees working in South Dakota requires a business to carry workers compensation insurance
• If you work for someone else you will not be covered by their insurance policy unless you are an employee. This requires independent contractors to have their own workman’s compensation insurance
• South Dakota offers both a private market and an assigned risk pool for those businesses struggling to secure insurance
• Sole proprietors and partners are excluded from coverage, but have the option to opt in
• Corporate officers and members off LLCs are included in coverage, but have the option to opt out