Nationwide emerged as the top contender for South Dakota’s best general liability insurance in MoneyGeek’s analysis with a score of 98 out of 100. However, The Hartford, NEXT, Thimble, and Hiscox are also great options for general liability policies.
Best General Liability Insurance in South Dakota
Updated: June 20, 2025
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Key Takeaways
Overall, the best general liability insurance company in South Dakota is Nationwide, which has a great balance of affordable rates for LLCs and good customer service.
The cheapest general liability insurance for sole proprietors in the state is offered by Thimble at $24 per month. For LLCs, Nationwide is the most affordable option at $36 a month.
General liability insurance costs in South Dakota depend on your industry, and we found they can range from $30 to $2,658 per month on average.
Best Cheap General Liability Insurance in South Dakota
| Nationwide | 98 | $35 | $36 |
| The Hartford | 93 | $34 | $56 |
| NEXT | 90 | $27 | $38 |
| Thimble | 89 | $24 | $58 |
| Hiscox | 83 | $32 | $101 |
*Rates were based on a $1,000,000 per occurrence and $2,000,000 aggregate limit for a software development company.
Nationwide: Best Overall
pros
Low rates for LLC businesses
Large coverage selection
Low customer claims frequency
cons
Higher rates for sole proprietors
COMPANY HIGHLIGHTS
Nationwide secures our recognition as South Dakota's top general liability insurance provider by expertly balancing reasonable costs with outstanding customer care. The insurer ties for first place with the lowest NAIC claims ratio while offering the most affordable rates for LLCs at $36 monthly.
NEXT: Cheapest Overall
pros
Easy fast buying process
Very cheap rates overall, regardless of business size
Business-insurance-only focus
cons
Higher customer complaint frequency
COMPANY HIGHLIGHTS
NEXT is our pick for the cheapest overall general liability insurance in South Dakota. It offers the second lowest rates for both LLCs and sole proprietors, at $38 and $27 respectively. While its claims ratio was higher than other companies we've reviewed in the state, their overall buying process was smooth, and you can get proof of insurance within the same day.
How Much Is General Liability Insurance in South Dakota?
An average general liability insurance policy in South Dakota typically costs around $30 per month for sole proprietors and $58 per month for LLCs. However, this only represents software development companies and the costs can vary widely by industry.
| Cleaning | $1,403 | $55 |
| General Contractor | $2,658 | $182 |
| Software Development | $58 | $30 |
*Rates are based on a $1,000,000 per occurrence and $2,000,000 aggregate coverage policy for general liability.
Factors That Impact General Liability Insurance Costs in South Dakota
General liability insurance costs can fluctuate based on a number of different factors in South Dakota. In the list below, you can see these factors and their impacts on your coverage costs:
Policy limits
Coverage limits greatly influence insurance premiums. Higher limits lead to increased costs, while lower limits generally result in more affordable premiums.
Number of employees and payroll costs
Businesses with a large workforce and high payroll expenses often experience a rise in general liability insurance costs. This trend is evident in both LLCs and sole proprietorships.
Business location
Where your business operates can significantly affect insurance costs. State-level average rates may differ from city to city, so it's essential to consider these variations when assessing your coverage needs.
Claims history
A record of multiple claims can make a business seem riskier to insurers, which can lead to higher premiums.
Industry
Industries with greater risks, like construction, often incur higher general liability insurance costs, similar to how South Dakota's small business insurance programs may vary based on risk factors.
South Dakota General Liability Insurance: Buyer's Guide
Business insurance is a complicated industry and can be difficult to navigate. So, to simplify your understanding of general liability insurance, we've created a short guide detailing how to get the best coverage, defining what it covers, listing requirements in South Dakota, and explaining how much coverage you should consider getting.
How to Find the Best General Liability Insurance Company
To help ensure that you get the best small business insurance regardless of your industry, we've created a step-by-step guide to simplify your coverage search. This guide aims to make your insurance journey straightforward and hassle-free.
- 1
Define your coverage needs
Determine your liability risk by taking into account your industry, products or services, customer types, business size and market impact. Measure the frequency and costs of common claims in your industry to evaluate coverage options better.
- 2
Research average costs for your business
To understand how good of a deal you're getting from business insurance companies, you need to research average costs for your particular business. Knowing average expenses will give you a measuring stick to judge whether a company is saving you money or not.
- 3
Consult similar businesses
Your business community is your greatest resource, and personal experience is often more valuable than resources online. You'll likely be able to get recommendations that are better for your specific needs and an understanding of what claims are common within your industry.
- 4
Compare multiple options through different means
Comparing multiple companies apples to apples ensures that you can judge which option is best for your business. Also, choosing multiple means of comparison, like online comparison sites and brokers, will give you a more comprehensive view of pricing and provide more opportunities to get advice.
What Does General Liability Insurance Cover and How Does It Work?
General liability insurance coverage consists of two parts: per occurrence and aggregate limits. Per occurrence refers to the maximum a single claim can go up to, while the aggregate limit is the total coverage you can get per year. In terms of covered items, this type of policy includes the following:
Bodily injuries or property damage on business property
Legal fees for bodily injury or property damage that your company may be responsible for
Damages to leased or rented business property
Bodily injury or property damage caused by your product or service
Libel, slander, or reputational harm legal defense
Legal fees for copyright infringement accusations
Is General Liability Insurance Required in South Dakota?
Like in most states, general liability insurance isn't expressly required by state law and instead varies by your industry. However, if you are looking to apply for a professional license, sign a contract with a larger company, or sign an office lease, some form of general liability insurance may be required. While not an exhaustive list, the following industries tend to fall into these categories:
- Medical
- Accounting
- Real estate
- Insurance
- Contracting
- Engineering
- Marketing
- Law
- Consulting
- Media/Communications
How Much General Liability Insurance Do I Need?
Most small businesses will only need a standard policy with $1 million of protection per occurrence and a $2 million limit per year. This will likely cover most or all damages caused over a year for most business types. Even so, your particular industry's risks and the size of your operation may require a larger coverage limit than standard.
WHO MAY NEED MORE COVERAGE
Certain businesses, like those in health services, building, or selling goods, might face more risks. This means they often pay more for general liability insurance. If you own such a business, think about getting more insurance to protect yourself.
Best General Liability Insurance in South Dakota: Bottom Line
Overall the best general liability insurance companies in South Dakota are Nationwide, The Hartford, and NEXT. However, we recommend comparing around yourself and getting plenty of quotes to ensure you get the best deal possible.
General Liability Insurance South Dakota: FAQ
Below, we address frequently asked questions regarding general liability insurance in South Dakota:
Which company has the best general liability insurance in South Dakota?
MoneyGeek's leading choice for general liability insurance in South Dakota is Nationwide, which earned an overall score of 98 out of 100. However, the ideal insurance for you depends on various details, including your business size, number of employees, and specific coverage requirements.
Which company has the cheapest general liability insurance in South Dakota?
Thimble offers the most affordable rates for sole proprietors at $288 per year ($24 monthly). For LLCs, Nationwide provides the cheapest coverage at $432 per year ($36 monthly).
Does South Dakota require businesses to have general liability insurance?
South Dakota does not require businesses to carry general liability insurance.
How We Chose the Best General Liability Insurance Providers in South Dakota
We broke down our scores into these categories and weights:
- LLC cost (55% of score)
- Sole proprietor cost (5% of score)
- Customer satisfaction (25% of score)
- Financial strength (10% of score)
- Quote process time (5% of score)
For all business insurance companies, we assumed software development industry LLCs with 20 employees. We based customer satisfaction and financial strength scores on NAIC and A.M. Best ratings. Quote process scores came from our MoneyGeek experts' personal experiences.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.