NEXT offers the best professional liability insurance in South Dakota, with affordable rates and strong customer support. The Hartford ranks second, while Simply Business takes third place.
Professional Liability Insurance in South Dakota
NEXT earns the highest score of 4.73 out of 5 in our analysis of the best professional liability insurance in South Dakota.
Discover cheap professional liability insurance in South Dakota below.
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Updated: October 3, 2025
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Best Professional Liability Insurance in South Dakota: Key Takeaways
NEXT is our top pick for professional liability insurance in South Dakota, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best South Dakota professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best professional liability insurance in South Dakota.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Professional Liability Insurance Companies in South Dakota
| NEXT Insurance | 4.73 | $68 |
| The Hartford | 4.65 | $67 |
| Simply Business | 4.51 | $72 |
| Coverdash | 4.45 | $73 |
| Nationwide | 4.43 | $77 |
| biBERK | 4.42 | $74 |
| Progressive Commercial | 4.40 | $70 |
| Hiscox | 4.36 | $72 |
| Thimble | 4.25 | $71 |
| Chubb | 4.25 | $83 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
LEARN MORE ABOUT BUSINESS INSURANCE
Professional liability insurance works best alongside other coverage types to create comprehensive financial protection for South Dakota businesses.
Best South Dakota Professional Liability Insurance Reviews
Most professionals need professional liability insurance, but not all providers offer the same value. We've broken down what differentiates these top providers and why they made our list for South Dakota businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.7/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Premium
$68These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
3.9/5Our Survey: Recommend to Others
4.8/5
The Hartford
Runner-Up for Best Provider
MoneyGeek Rating
4.7/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Premium
$67These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
4.5/5Our Survey: Recommend to Others
4.5/5
Cheapest Professional Liability Insurance Companies in South Dakota
The Hartford offers the cheapest professional liability coverage in South Dakota at $67 monthly ($800 annually). NEXT provides another affordable option at $68 per month, giving business owners budget-friendly protection.
| The Hartford | $67 | $800 |
| NEXT Insurance | $68 | $815 |
| Progressive Commercial | $70 | $846 |
| Thimble | $71 | $848 |
| Simply Business | $72 | $858 |
| Hiscox | $72 | $869 |
| Coverdash | $73 | $872 |
| biBERK | $74 | $890 |
| Nationwide | $77 | $926 |
| Chubb | $83 | $997 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
Average Cost of Professional Liability Insurance in South Dakota
Professional liability insurance costs $73 monthly ($872 annually) in South Dakota, which is $5 less than the national average. Rates vary by profession, with mortgage brokers paying around $154 monthly while florists pay about $35. Your business location, claims history and coverage limits influence your final premium.
| Accountants | $139 | $1,671 |
| Ad Agency | $92 | $1,108 |
| Auto Repair | $77 | $928 |
| Automotive | $71 | $851 |
| Bakery | $49 | $593 |
| Barber | $40 | $483 |
| Beauty Salon | $46 | $550 |
| Bounce House | $56 | $671 |
| Candle | $39 | $463 |
| Cannabis | $116 | $1,387 |
| Catering | $74 | $894 |
| Cleaning | $51 | $609 |
| Coffee Shop | $58 | $697 |
| Computer Programming | $98 | $1,182 |
| Computer Repair | $58 | $699 |
| Construction | $71 | $858 |
| Consulting | $101 | $1,207 |
| Contractor | $58 | $701 |
| Courier | $46 | $555 |
| DJ | $42 | $502 |
| Daycare | $103 | $1,240 |
| Dental | $78 | $941 |
| Dog Grooming | $52 | $623 |
| Drone | $101 | $1,209 |
| Ecommerce | $57 | $686 |
| Electrical | $60 | $718 |
| Engineering | $98 | $1,173 |
| Excavation | $63 | $756 |
| Florist | $35 | $418 |
| Food | $103 | $1,240 |
| Food Truck | $55 | $657 |
| Funeral Home | $76 | $913 |
| Gardening | $38 | $456 |
| HVAC | $76 | $912 |
| Handyman | $51 | $612 |
| Home-based business | $35 | $424 |
| Hospitality | $70 | $837 |
| Janitorial | $46 | $556 |
| Jewelry | $58 | $694 |
| Junk Removal | $64 | $764 |
| Lawn/Landscaping | $48 | $571 |
| Lawyers | $134 | $1,607 |
| Manufacturing | $56 | $670 |
| Marine | $81 | $970 |
| Massage | $98 | $1,179 |
| Mortgage Broker | $154 | $1,850 |
| Moving | $76 | $918 |
| Nonprofit | $47 | $568 |
| Painting | $60 | $721 |
| Party Rental | $51 | $614 |
| Personal Training | $67 | $799 |
| Pest Control | $89 | $1,072 |
| Pet | $43 | $518 |
| Pharmacy | $54 | $645 |
| Photography | $58 | $702 |
| Physical Therapy | $88 | $1,053 |
| Plumbing | $84 | $1,013 |
| Pressure Washing | $54 | $650 |
| Real Estate | $117 | $1,401 |
| Restaurant | $76 | $915 |
| Retail | $52 | $628 |
| Roofing | $91 | $1,088 |
| Security | $93 | $1,120 |
| Snack Bars | $44 | $527 |
| Software | $88 | $1,062 |
| Spa/Wellness | $104 | $1,253 |
| Speech Therapist | $91 | $1,096 |
| Startup | $68 | $811 |
| Tech/IT | $92 | $1,109 |
| Transportation | $89 | $1,063 |
| Travel | $90 | $1,084 |
| Tree Service | $70 | $843 |
| Trucking | $103 | $1,236 |
| Tutoring | $58 | $693 |
| Veterinary | $107 | $1,289 |
| Wedding Planning | $74 | $883 |
| Welding | $70 | $840 |
| Wholesale | $57 | $689 |
| Window Cleaning | $59 | $703 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
How Much Professional Liability Insurance Do I Need in South Dakota?
Professional liability insurance requirements in South Dakota depend on your specific profession. Health care providers, attorneys and certain other fields face mandatory coverage rules, while many industries operate without legal requirements. Your coverage amount should reflect your risk exposure and client expectations, even when optional. Higher-risk professions typically carry $1 million per occurrence and $3 million aggregate coverage.
Your coverage decision depends on three factors:
Your Industry Risk
Some industries in South Dakota carry greater liability exposure than others, directly affecting how much coverage you need. Architects designing commercial buildings in Sioux Falls or technology consultants serving regional businesses face higher risk, needing more coverage. Professional liability insurance for accountants in smaller towns like Aberdeen or real estate agents in rural markets need lower limits. Your industry's typical claim frequency and severity should guide your coverage amount decision.
Client Requirements
Many clients and contracts in South Dakota require proof of professional liability insurance at specific minimum limits before work can begin. Large corporations, government contracts, and major organizations throughout the state often mandate coverage levels of $1 million or more. Meeting these contractual requirements is essential for securing and maintaining business relationships in South Dakota's competitive market.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a professional liability lawsuit in South Dakota's legal environment. Small mistakes might result in damages of a few thousand dollars, while errors on larger projects could lead to six-figure settlements plus legal fees ranging from $50,000 to $200,000. Consider the scale of your typical projects and client relationships when determining adequate coverage limits.
How to Get the Best Professional Liability Insurance in South Dakota
Our step-by-step guide walks you through how to get business insurance that matches your professional liability needs and budget in South Dakota.
- 1
Evaluate Your Business Risks
Different businesses face varying liability exposures across the state. A regional accounting firm typically needs higher coverage limits than a freelance graphic designer. Review your client contracts and industry standards to determine appropriate coverage amounts.
- 2
Find a Local Agent
Look for an agent who knows South Dakota's business landscape and understands how business insurance costs vary by location and industry. Local agents understand regional industry requirements and can recommend coverage that fits your specific professional needs. They also know which insurers work best with businesses in your area.
- 3
Collect Multiple Quotes
Request quotes from at least three insurers, comparing affordable business insurance rates and policy terms like exclusions and deductibles. A $1,000,000 liability policy can vary significantly in what it actually covers.
- 4
Research Insurer Quality
When researching business insurance in South Dakota, look beyond price. Check AM Best ratings for financial stability and read professional reviews about claims experiences. An insurer's expertise in your specific industry also matters for proper coverage.
- 5
Explore Bundling Options
Many insurers offer discounts when you combine professional liability with other types of business insurance coverage, like general liability or business owner's policies. These bundle discounts can make comprehensive protection more affordable while simplifying your insurance management.
- 6
Maintain Continuous Coverage
Professional liability operates on a claims-made basis, meaning you're only covered if your policy is active when someone files a claim. When switching insurers, secure prior acts coverage or purchase tail coverage to avoid gaps in protection.
How to Prevent Professional Liability Claims in South Dakota
Many professional liability claims happen because of miscommunication and unclear client expectations, not actual mistakes. Even small disputes can lead to thousands in legal fees. Use these strategies to avoid problems and protect your business from expensive claims.
Document Everything
Keep written records of all client communications, including email confirmations, project changes and client approvals. This documentation provides clear evidence of what was agreed upon and helps prevent disputes over project scope or deliverables. Written proof protects your business by showing exactly what clients requested and approved throughout the project.
Use Detailed Contracts With Clear Scope
Create contracts that clearly define your responsibilities, project timelines and specific deliverables for each client engagement. Include detailed descriptions of what services are included in your fee and what additional work will require extra charges. This approach prevents misunderstandings about project scope and reduces conflicts over unexpected costs.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before proceeding with any additional work or modifications. Document how these changes will affect project timelines, budgets and final deliverables. This practice ensures both parties understand the impact of changes and prevents disputes over additional charges or delayed completion dates.
Set Realistic Expectations Upfront
Be transparent with clients about project timelines, potential challenges and expected results from the beginning of your professional relationship. Honest communication about your capabilities and limitations helps avoid overpromising and reduces the likelihood of client dissatisfaction. Clear expectations create stronger client relationships and fewer liability risks.
Keep Detailed Project Records
Maintain thorough records of all work performed, decisions made and the reasoning behind your professional recommendations. These detailed files demonstrate your diligence and professional standards if your work is later questioned or challenged. Comprehensive project documentation provides strong protection against claims of negligence or inadequate service.
South Dakota Professional Liability: Bottom Line
Professional liability insurance in South Dakota starts with understanding your business risks and client needs. NEXT takes our top rating, but your industry, contracts and budget should drive your final choice. Assess your coverage needs first, then work with a local agent to compare options that deliver solid financial protection for your business.
South Dakota Professional Liability Insurance: FAQ
Here are frequently asked questions about professional liability insurance in South Dakota.
Is professional liability insurance required in South Dakota?
South Dakota doesn't legally require professional liability insurance, but client contracts and industry standards often demand coverage. Many professionals carry it anyway for financial protection and credibility with potential clients.
What does professional liability insurance cost in South Dakota?
Professional liability insurance in South Dakota costs between $67 and $83 monthly, depending on your provider. Your premium varies based on your industry's risk level, claims history, coverage limits and business location within the state.
Which professional liability insurance company is best in South Dakota?
NEXT leads professional liability insurance in South Dakota, scoring 4.73 out of 5 for its affordable rates and excellent customer service. The Hartford ranks second with a strong 4.65 rating, while Simply Business comes third at 4.51, providing solid coverage options for South Dakota professionals.
How much professional liability coverage do I need in South Dakota?
Professional liability coverage amounts in South Dakota depend on your industry's risk level, client contract requirements and potential lawsuit expenses. Higher-risk professions like architects and consultants need larger coverage limits, while lower-risk businesses can often get by with smaller amounts of protection.
Can I get professional liability insurance online in South Dakota?
Yes, you can purchase professional liability insurance online in South Dakota. Many insurers offer digital applications that take just minutes to complete, with instant coverage certificates and immediate policy access. This streamlined approach eliminates traditional paperwork delays and provides 24/7 account management convenience for busy professionals.
What's the difference between professional liability and E&O insurance?
Professional liability and errors and omissions (E&O) insurance both cover mistakes in your professional services. The different names come from industry preferences. Lawyers often say E&O while healthcare providers say professional liability, but the financial protection works the same way.
Do I need professional liability insurance if I work from home in South Dakota?
Yes, home-based professionals in South Dakota need professional liability insurance. Your work location doesn't eliminate the risk of costly mistakes that harm clients financially. A marketing consultant providing poor strategy advice or a freelance graphic designer delivering flawed branding could face expensive lawsuits. Professional errors create the same financial exposure whether you work from your kitchen table or a corporate office.
What happens if I let my professional liability insurance lapse in South Dakota?
Letting professional liability insurance lapse in South Dakota exposes you to financial risks. Claims-made policies only cover lawsuits filed while your policy remains active, regardless of when you performed the work. To avoid dangerous coverage gaps when switching insurers, secure prior acts coverage with your new provider or purchase tail coverage from your previous insurer to protect against future claims.
How We Scored the Best Professional Liability Insurance Companies in South Dakota
A professional liability lawsuit can devastate a small business in South Dakota or force it to close permanently. We reviewed insurers throughout the state to identify which companies provide the most reliable financial protection for businesses from startups to well-established firms.
Our Scoring System
- Affordability (50%): Cost drives most small business insurance choices. We gave affordability the highest weight because finding quality coverage within budget is essential for local businesses.
- Customer experience (30%): Professional liability claims create stress and urgency. We analyzed service quality through J.D. Power ratings and complaint records from the South Dakota Department of Insurance.
- Coverage options (15%): We reviewed policy flexibility and exclusions to ensure they serve the state's diverse professional services market.
- Financial strength (5%): AM Best financial ratings confirmed each recommended insurer maintains the stability to pay claims reliably.
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.
sources
- Alliance Health. "Provider Insurance Requirements." Accessed October 10, 2025.
- Better Business Bureau. "The Hartford Insurance Company | BBB Business Profile." Accessed October 10, 2025.