NEXT leads South Dakota's best workers' comp insurance market with outstanding customer service and comprehensive coverage options. The Hartford and Simply Business provide equally reliable alternatives for Mount Rushmore State business owners, with The Hartford offering particularly competitive service levels.
Workers' Comp Insurance in South Dakota
NEXT tops our analysis as the best workers' comp insurance provider in South Dakota with a 4.59 out of 5 overall score.
Compare top South Dakota workers' comp insurance providers and find your ideal coverage.
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Updated: November 4, 2025
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Key Takeaways
NEXT, The Hartford and Simply Business lead South Dakota's workers' comp insurance market with the highest overall scores.
Your business's specific risk level, workforce size, claims record and financial resources determine which South Dakota workers' comp provider fits best.
To find the best small business insurance, you should collect multiple quotes, assess each provider's industry knowledge, review their service history and analyze coverage details.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Workers' Comp Insurance Companies in South Dakota
| NEXT | 4.59 | $65 |
| The Hartford | 4.57 | $65 |
| Simply Business | 4.51 | $67 |
| Coverdash | 4.44 | $68 |
| biBERK | 4.42 | $70 |
| Nationwide | 4.42 | $76 |
| Progressive Commercial | 4.38 | $66 |
| Hiscox | 4.36 | $67 |
| Thimble | 4.35 | $66 |
| Chubb | 4.26 | $79 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
LEARN MORE ABOUT BUSINESS INSURANCE IN SOUTH DAKOTA
South Dakota businesses often need more than just workers' compensation insurance. Learn about other types of coverage that can safeguard your business:
Best South Dakota Workers’ Comp Insurance Reviews
NEXT and The Hartford are two of the best providers in South Dakota, offering great coverage for business owners who need workers’ compensation insurance.
NEXT
Best Overall Provider
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average monthly premium
$65Based on average costs across multiple business typesOur survey: Claims process
3.9/5Rating from independent customer satisfaction surveyOur survey: Recommend to others
4.8/5Percentage of customers who would recommend NEXT
The Hartford
Runner-Up Best Provider
MoneyGeek Rating
4.6/ 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average monthly premium
$65Based on average costs across business typesOur survey: Claims process
4.5/5Rating from MoneyGeek's customer satisfaction surveyOur survey: Recommend to others
4.5/5Percentage of customers who would recommend The Hartford
Cheapest Workers' Comp Insurance Companies in South Dakota
In South Dakota, The Hartford and NEXT provide cheap workers' comp at $65. Thimble also offers competitive rates. The table below shows costs from all companies we analyzed:
| The Hartford | $65 | $774 |
| NEXT | $65 | $775 |
| Thimble | $66 | $787 |
| Progressive Commercial | $66 | $790 |
| Hiscox | $67 | $802 |
| Simply Business | $67 | $803 |
| Coverdash | $68 | $814 |
| biBERK | $70 | $840 |
| Nationwide | $76 | $908 |
| Chubb | $79 | $950 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Your actual premium depends on where your business is located, what industry you're in, how many employees you have, and other factors insurers consider.
Average Cost of Workers’ Comp Insurance in South Dakota
Workers' compensation insurance in South Dakota costs businesses an average of $69 per month ($824 annually), which runs $5 below the national monthly average of $74. South Dakota's actual premiums vary for each business based on industry risk level, number of employees, annual payroll and claims history.
Average Cost of Workers' Comp in South Dakota by Industry
In South Dakota, the cost of workers’ compensation insurance differs widely depending on the industry’s risk level. Speech therapists pay some of the lowest premiums at about $6 per month, while roofing companies pay the most at around $778 per month.
These differences show how the risk of workplace injuries differs from one profession to another.
| Accountants | $19 | $228 |
| Ad Agency | $15 | $178 |
| Auto Repair | $141 | $1,695 |
| Automotive | $110 | $1,314 |
| Bakery | $50 | $600 |
| Barber | $13 | $158 |
| Beauty Salon | $14 | $162 |
| Bounce House | $38 | $452 |
| Candle | $38 | $451 |
| Cannabis | $78 | $938 |
| Catering | $69 | $824 |
| Cleaning | $45 | $540 |
| Coffee Shop | $44 | $526 |
| Computer Programming | $27 | $318 |
| Computer Repair | $22 | $269 |
| Construction | $169 | $2,027 |
| Consulting | $28 | $341 |
| Contractor | $155 | $1,858 |
| Courier | $212 | $2,545 |
| DJ | $13 | $156 |
| Daycare | $12 | $149 |
| Dental | $10 | $125 |
| Dog Grooming | $60 | $723 |
| Drone | $25 | $297 |
| Ecommerce | $20 | $242 |
| Electrical | $54 | $643 |
| Engineering | $36 | $426 |
| Excavation | $101 | $1,210 |
| Florist | $57 | $683 |
| Food | $39 | $471 |
| Food Truck | $42 | $506 |
| Funeral Home | $25 | $303 |
| Gardening | $44 | $529 |
| HVAC | $59 | $703 |
| Handyman | $88 | $1,051 |
| Home-based | $9 | $111 |
| Hospitality | $65 | $779 |
| Janitorial | $46 | $548 |
| Jewelry | $28 | $336 |
| Junk Removal | $133 | $1,590 |
| Lawn/Landscaping | $35 | $419 |
| Lawyers | $49 | $591 |
| Manufacturing | $55 | $659 |
| Marine | $140 | $1,676 |
| Massage | $14 | $164 |
| Mortgage Broker | $13 | $155 |
| Moving | $243 | $2,920 |
| Nonprofit | $29 | $353 |
| Painting | $130 | $1,565 |
| Party Rental | $35 | $414 |
| Personal Training | $23 | $281 |
| Pest Control | $66 | $788 |
| Pet | $29 | $348 |
| Pharmacy | $6 | $72 |
| Photography | $16 | $191 |
| Physical Therapy | $6 | $77 |
| Plumbing | $60 | $718 |
| Pressure Washing | $78 | $933 |
| Real Estate | $28 | $335 |
| Restaurant | $59 | $708 |
| Retail | $33 | $391 |
| Roofing | $778 | $9,341 |
| Security | $49 | $584 |
| Snack Bars | $41 | $491 |
| Software | $25 | $299 |
| Spa/Wellness | $16 | $194 |
| Speech Therapist | $6 | $68 |
| Startup | $12 | $147 |
| Tech/IT | $25 | $305 |
| Transportation | $213 | $2,559 |
| Travel | $7 | $79 |
| Tree Service | $205 | $2,464 |
| Trucking | $254 | $3,052 |
| Tutoring | $9 | $112 |
| Veterinary | $19 | $222 |
| Wedding Planning | $26 | $317 |
| Welding | $109 | $1,314 |
| Wholesale | $37 | $448 |
| Window Cleaning | $196 | $2,356 |
How Much Workers' Comp Insurance Do I Need in South Dakota?
Employers in the state are generally required to carry workers’ compensation insurance once they start hiring, unless they qualify for an exemption. This coverage helps pay for medical care and lost wages when employees are hurt or become sick because of their job.
Companies that don’t keep the required coverage can face penalties since the state treats non-compliance as a Class 2 misdemeanor.
Sole proprietors
Self-employed business owners can typically opt out of workers' comp coverage for themselves while still needing it for any employees.
Corporate officers
Executive officers owning at least 25% of company stock can choose to exclude themselves by filing a written waiver with the state.
Independent contractors
Workers who maintain control over their work methods and schedule often qualify as independent contractors exempt from coverage requirements.
Real estate agents
Licensed real estate professionals working on commission basis typically qualify for exemption when operating as independent contractors.
Domestic workers
Household employees working less than 40 hours per week or earning under state threshold amounts may be exempt from coverage requirements.
Agricultural workers
Small farms with limited seasonal workers or family members often qualify for exemption from mandatory coverage rules.
Religious organizations
Members of religious organizations who have taken vows of poverty while working for their church can usually claim exemption.
Professional athletes
Athletes in certain professional sports leagues may be exempt due to separate injury coverage through their league or team contracts.
How to Get the Best Workers' Comp Insurance in South Dakota
You can find affordable workers' comp insurance in South Dakota that protects your team and manages the cost of business insurance. Compare quotes from multiple carriers and review their coverage and claims processes to get business insurance that fits your needs.
- 1Check coverage requirements
Most businesses in South Dakota with employees are required by law to carry workers’ compensation insurance.
- 2Collect business details
Prepare accurate payroll records, employee counts and job classifications. These affect costs of South Dakota business insurance.
- 3Get multiple insurance quotes
Contact at least three different insurance carriers to see which offers cheap small business insurance.
- 4Find industry-specific experience
Choose insurers that have experience with your line of work. For example, construction businesses benefit from working with carriers who understand local safety rules. These providers can also guide you in adding other types of business insurance coverages to strengthen your financial protection.
- 5Compare provider quality
Check claim processing times and complaint records. Ask about workplace safety training and return-to-work programs.
- 6Review policy details
Understand coverage limits and exclusions before signing. Consider pay-as-you-go structures for better cash flow management.
- 7Schedule annual reviews
Review your coverage yearly as your business changes. Changes in payroll, staff size or claims history affect your premiums.
South Dakota Workers’ Comp: Bottom Line
South Dakota businesses have access to several strong workers' compensation insurance providers. Our analysis shows NEXT, The Hartford and Simply Business lead the market for Mount Rushmore State companies. Consider getting quotes from these providers to find the best fit for your specific industry, company size and budget needs.
South Dakota Workers' Comp Insurance: FAQ
Find answers to your most pressing questions in our comprehensive FAQ section below.
Is workers' comp insurance required for all South Dakota businesses?
Workers' compensation insurance is mandatory for South Dakota businesses with employees. Notable exemptions include domestic servants, farm or agricultural laborers, independent contractors and certain corporate officers.
How much does workers' comp insurance cost in South Dakota?
The Hartford offers workers' compensation insurance in South Dakota starting at $65 per month ($774 annually).
What does workers' comp insurance cover in South Dakota?
South Dakota workers' compensation insurance covers medical expenses and wage replacement benefits for work-related injuries or illnesses. The coverage includes hospital bills, medications, rehabilitation costs and disability payments. Employers receive protection from lawsuits, while independent contractors must purchase separate coverage.
Which workers' comp insurance company is best in South Dakota?
NEXT leads South Dakota's workers' comp providers with a 4.59 overall score, excelling in customer service (4.70) and coverage options (4.80). The Hartford follows at 4.57, known for strong affordability, while Simply Business ranks third with 4.51, offering the highest coverage score (4.90). Choose based on your priority: service quality, cost or coverage breadth.
What happens if I don't have workers' comp insurance in South Dakota?
You'll face legal trouble. You could pay fines or face criminal charges. You're also liable for any workplace injuries, including medical bills and lost wages. The South Dakota Department of Labor and Regulation enforces this through audits and investigations.
Do sole proprietors need workers' comp insurance in South Dakota?
No. Sole proprietors in South Dakota don't need workers' comp insurance.
How do I choose the right workers' comp insurance company in South Dakota?
Compare quotes from at least three insurers. Choose one with experience in your industry and a smooth claims process. Check complaint records and customer ratings with the state insurance department.
How We Scored the Best Workers' Comp Insurance Companies in South Dakota
- Affordability (50%): Cost drives every small business insurance decision in South Dakota's expensive market. We compared monthly premiums across all companies, since even comprehensive policies won't help if you can't afford them.
- Customer experience (30%): When your employee gets hurt, you'll need an insurer that handles claims quickly and treats injured workers fairly. We used J.D. Power ratings, South Dakota Department of Insurance complaint data and independent reviews.
- Coverage options (15%): We evaluated each company's policy flexibility, add-on options and coverage limitations for specific South Dakota industries and regulatory requirements.
- Financial strength (5%): Premium savings don't matter if your insurer struggles financially. We checked AM Best ratings to ensure recommended carriers can deliver on their promises.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.