Workers' comp rates in South Dakota depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in South Dakota
With rates starting at $5 monthly, NEXT, The Hartford and Simply Business offer the cheapest and best workers' comp insurance in South Dakota.
Get matched to top South Dakota workers’ comp insurance providers and find your ideal coverage.
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Updated: December 29, 2025
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Best South Dakota Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in South Dakota?
NEXT offers the top cheap workers' compensation insurance in South Dakota. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- NEXT: $65
- The Hartford: $65
- Simply Business: $67
- Coverdash: $68
- biBerk: $70
Is workers' comp insurance required in South Dakota?
South Dakota mandates workers' comp insurance for most employers with one or more employees. Agricultural employers with fewer than five workers are exempt, along with sole proprietors and partners without employees. Violating businesses face stop-work orders, fines up to $1,000 per day and potential criminal charges for willful non-compliance.
How much does workers' comp insurance cost in South Dakota?
Workers' compensation insurance costs in South Dakota run about $34 monthly per employee for small businesses. Your actual premium depends on your specific industry and payroll. Low-risk businesses, such as speech therapy, pay around $3 per employee per month, while high-risk industries, like roofing, face costs of approximately $389 per employee each month.
How do you get workers' comp insurance in South Dakota?
You can get workers' comp coverage in South Dakota by:
- Purchasing from licensed private insurance companies operating in the state
- Accessing coverage through the assigned risk pool when standard market options aren't available
- Qualifying for self-insurance status if your business meets South Dakota's financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does South Dakota workers' comp insurance cover?
Workers' compensation in South Dakota covers:
- Medical expenses for workplace injuries
- Lost wage replacement during recovery periods
- Permanent disability benefits for lasting impairments
- Survivor benefits for families when work-related fatalities occur
Best Workers' Comp Insurance Companies in South Dakota
NEXT leads workers' comp insurance in South Dakota with top-tier customer support and comprehensive coverage options that protect businesses thoroughly. The Hartford and Simply Business rank as strong alternatives, both delivering reliable protection for small business owners across the state.
| NEXT Insurance | 4.59 | $65 | 1 | 2 |
| The Hartford | 4.57 | $65 | 2 | 3 |
| Simply Business | 4.51 | $67 | 5 | 1 |
| Coverdash | 4.44 | $68 | 6 | 2 |
| biBERK | 4.42 | $70 | 2 | 5 |
| Nationwide | 4.42 | $76 | 2 | 4 |
| Progressive Commercial | 4.38 | $66 | 7 | 5 |
| Hiscox | 4.36 | $67 | 4 | 6 |
| Thimble | 4.35 | $66 | 8 | 5 |
| Chubb | 4.26 | $79 | 3 | 4 |
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.
Get Matched to Top Workers' Comp Insurers in South Dakota
Select your industry and state to get a customized South Dakota workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN SOUTH DAKOTA
Explore the best business insurance providers in South Dakota through our guides:
Best South Dakota Workers’ Comp Insurance Company Reviews
We analyzed coverage options, rates and customer service across multiple insurers to bring you the best workers' comp options in South Dakota.
NEXT
Best Workers' Comp Insurance in South Dakota
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$65Based on average costs across multiple business typesWorkers' Comp Digital Experience Score
4.8/5 (1st)Rating from independent customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend NEXT
The Hartford
Best South Dakota Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.5/ 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Points
Average Monthly Workers' Comp Premium
$65Based on average costs across business typesWorkers' Comp Claims Process Score
4.5/5 (1st)Rating from MoneyGeek's customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of customers who would recommend The Hartford
Cheapest Workers' Comp Insurance Companies in South Dakota
The Hartford delivers the most affordable workers' comp insurance in South Dakota at $65 monthly ($774 annually), putting $4 back in your pocket each month compared to the state average of $69. NEXT follows closely as the second cheapest option at $65 monthly, while Thimble rounds out the top three with rates of $66 per month. The table below shows costs from all companies we analyzed.
| The Hartford | $65 | $774 |
| NEXT Insurance | $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 represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in South Dakota by Industry
The Hartford delivers the most affordable workers' comp rates for automotive businesses at $101 monthly or $1,206 annually. This insurer dominates pricing across 22 industries, excelling in automotive, window cleaning and welding sectors. The Hartford ranks as the top affordable choice for diverse business types.
| Accountants | Simply Business | $18 | $216 |
| Ad Agency | Simply Business | $14 | $167 |
| Automotive | The Hartford | $101 | $1,206 |
| Bakery | Simply Business | $47 | $563 |
| Auto Repair | Progressive Commercial | $131 | $1,570 |
| Barber | NEXT Insurance | $12 | $145 |
| Bounce House | Simply Business | $35 | $424 |
| Beauty Salon | NEXT Insurance | $13 | $151 |
| Catering | NEXT Insurance | $63 | $756 |
| Candle | Thimble | $35 | $422 |
| Cannabis | Nationwide | $86 | $1,028 |
| Coffee Shop | Progressive Commercial | $41 | $490 |
| Cleaning | NEXT Insurance | $41 | $496 |
| Coffee Shop | NEXT Insurance | $41 | $490 |
| Computer Programming | The Hartford | $24 | $293 |
| Computer Repair | NEXT Insurance | $21 | $247 |
| Contractor | Simply Business | $145 | $1,736 |
| Construction | Thimble | $157 | $1,880 |
| Consulting | NEXT Insurance | $26 | $310 |
| Courier | NEXT Insurance | $191 | $2,291 |
| Dental | The Hartford | $10 | $117 |
| Daycare | Progressive Commercial | $12 | $140 |
| DJ | Progressive Commercial | $12 | $146 |
| Drone | Progressive Commercial | $23 | $273 |
| Dog Grooming | The Hartford | $55 | $665 |
| Electrical | The Hartford | $50 | $596 |
| Ecommerce | Simply Business | $19 | $224 |
| Excavation | NEXT Insurance | $92 | $1,099 |
| Engineering | Simply Business | $33 | $396 |
| Food Truck | NEXT Insurance | $40 | $474 |
| Florist | The Hartford | $52 | $621 |
| Food | The Hartford | $36 | $430 |
| Gardening | The Hartford | $41 | $487 |
| Funeral Home | NEXT Insurance | $23 | $280 |
| Handyman | Hiscox | $83 | $1,001 |
| Hospitality | Thimble | $60 | $724 |
| Home-based | NEXT Insurance | $9 | $102 |
| HVAC | The Hartford | $54 | $642 |
| Lawn/Landscaping | Progressive Commercial | $32 | $385 |
| Janitorial | NEXT Insurance | $42 | $503 |
| Jewelry | Thimble | $26 | $310 |
| Junk Removal | The Hartford | $123 | $1,482 |
| Manufacturing | NEXT Insurance | $50 | $597 |
| Lawyers | NEXT Insurance | $46 | $549 |
| Massage | Progressive Commercial | $13 | $153 |
| Marine | NEXT Insurance | $129 | $1,554 |
| Moving | Progressive Commercial | $229 | $2,753 |
| Mortgage Broker | Thimble | $12 | $142 |
| Painting | NEXT Insurance | $121 | $1,450 |
| Nonprofit | Thimble | $27 | $329 |
| Personal Training | The Hartford | $22 | $265 |
| Party Rental | The Hartford | $32 | $387 |
| Pest Control | Thimble | $62 | $740 |
| Photography | The Hartford | $15 | $176 |
| Pet | NEXT Insurance | $27 | $323 |
| Pharmacy | The Hartford | $6 | $66 |
| Physical Therapy | NEXT Insurance | $6 | $70 |
| Pressure Washing | Nationwide | $85 | $1,021 |
| Plumbing | Progressive Commercial | $55 | $658 |
| Restaurant | The Hartford | $54 | $647 |
| Real Estate | Progressive Commercial | $26 | $312 |
| Roofing | Nationwide | $865 | $10,379 |
| Retail | NEXT Insurance | $30 | $366 |
| Security | The Hartford | $45 | $539 |
| Software | The Hartford | $23 | $277 |
| Snack Bars | NEXT Insurance | $38 | $459 |
| Speech Therapist | Hiscox | $5 | $63 |
| Spa/Wellness | NEXT Insurance | $15 | $177 |
| Startup | The Hartford | $11 | $136 |
| Travel | NEXT Insurance | $6 | $73 |
| Tech/IT | NEXT Insurance | $23 | $281 |
| Transportation | NEXT Insurance | $199 | $2,384 |
| Tree Service | The Hartford | $189 | $2,266 |
| Tutoring | The Hartford | $8 | $102 |
| Trucking | The Hartford | $236 | $2,829 |
| Wedding Planning | NEXT Insurance | $25 | $296 |
| Veterinary | NEXT Insurance | $17 | $207 |
| Welding | Simply Business | $103 | $1,232 |
| Wholesale | NEXT Insurance | $34 | $410 |
| Window Cleaning | The Hartford | $182 | $2,187 |
How Much Is Workers' Comp Insurance in South Dakota?
South Dakota workers' comp insurance cost averages $69 monthly ($824 annually), running $5 below the national average of $74. Rates vary by industry, ranging from $15 monthly ($8 per employee) for ad agencies to $196 monthly ($98 per employee) for window cleaning services.
| 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 |
South Dakota Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in South Dakota:
Competitive Voluntary Market Structure
South Dakota doesn't require workers' comp coverage, creating intense competition among 200-plus carriers. Premium quotes vary 30% to 40% for identical coverage because insurers selectively choose accounts based on safety records. Carriers can adjust filed rates by up to 25% through credits and debits, giving you real negotiating power. Present competing quotes and carriers often match or beat rivals to win your business, producing pricing advantages unavailable in monopolistic state fund systems.
NCCI Governance and 2024 E-Mod Changes
The National Council on Compensation Insurance manages experience mods in South Dakota. NCCI's 2024 changes shifted from a nationwide $18,500 split point to one reflecting South Dakota's actual claim costs. Your e-mod now compares you against other South Dakota businesses rather than national averages. Small businesses receive fairer treatment, and catastrophic claims won't devastate your mod like before. The changes reduce outlier loss penalties while maintaining accuracy in predicting future risk.
State-Specific Premium Discount Programs
South Dakota offers three discount programs many states don't provide. Merit Rating gives businesses paying under $3,750 annually up to 10% off based on claims history. Experience Rating serves larger employers, adjusting premiums through your mod—0.85 saves 15%, 1.20 costs 20% more. Scheduled Rating offers up to 24% off for participating in carrier safety programs and stacks with your e-mod for 30%-plus savings. Not every insurer offers scheduled rating.
Owner/Officer Payroll Requirements
Corporate officers and LLC members not opting out must use $54,600 minimum and $213,200 maximum payroll for 2024-2025 premium calculations, changing each July 1. The maximum caps costs even for highly paid executives, making South Dakota cheaper than uncapped states. The minimum increases costs for low-wage owners paying premium on $54,600 regardless of actual salary. Officers can exclude themselves, eliminating premium but losing injury protection.
NCCI Assigned Risk Pool
NCCI administers South Dakota's assigned risk pool for businesses unable to secure voluntary market coverage. You need two declination letters to access this market. July 1, 2025 rates dropped 8.8%, but you'll still pay 25% to 50% more than voluntary rates with no carrier choice or negotiating power. Exiting requires three claim-free years plus finding a voluntary carrier, with surcharges costing thousands during that period.
Benefit Rate Adjustments
Effective July 1, 2025, minimum weekly benefits are $554 and maximum $1,108, with permanent total disability benefits increasing 2.9%. Rising benefit maximums create upward premium pressure as insurers build higher payouts into rate calculations. This year's adjustments influence next year's filings as carriers analyze updated costs. The $1,108 cap limits exposure compared to higher-benefit states, helping keep South Dakota rates moderate overall.
How Much Workers' Comp Insurance Do I Need in South Dakota?
South Dakota law doesn't mandate required workers' compensation coverage, making it one of only two states where insurance remains voluntary. However, injured employees can sue you for medical expenses plus twice the disability income or death benefits allowed under state law.
If you purchase coverage, your policy must provide full medical care with no dollar limits, temporary disability benefits equal to two-thirds of average weekly wages, and permanent disability benefits. Coverage amounts depend on your payroll and industry classification codes.
South Dakota Workers' Comp Insurance Exemptions
While you're required to have coverage in South Dakota, some business categories are exempt from workers' comp requirements:
- Farm and agricultural workers: South Dakota completely excludes farm and agricultural laborers from workers' comp coverage requirements regardless of hours worked or employee count.
- Domestic servants: Household employees working less than 20 hours per week and less than 6 weeks in any 13-week period are exempt from coverage in South Dakota.
- Sole proprietors: A sole proprietor is automatically excluded from South Dakota workers' comp requirements but may voluntarily elect coverage using the state's minimum payroll of $54,600 for rating.
- Business partners: Partners in partnerships are automatically exempt from coverage under South Dakota law but can choose to be included at the minimum payroll rate.
- Corporate officers: South Dakota automatically includes corporate officers in workers' comp coverage but allows them to opt out by filing exemption paperwork with their carrier.
- LLC members: LLC members are treated like corporate officers in South Dakota. They're automatically covered but eligible to elect exemption by filing the appropriate forms.
- Independent contractors: An independent contractor whose work falls outside the usual course of your business is exempt, including South Dakota-certified real estate agents and truck owner-operators.
- Self-employed individuals: Self-employed business owners operating without employees are not required to carry workers' comp coverage in South Dakota but may purchase it voluntarily for personal protection.
- Workfare participants: South Dakota specifically excludes individuals participating in government workfare programs from workers' compensation coverage requirements.
- Elected officials: Officials elected to serve the state of South Dakota or any political subdivision are exempt from mandatory workers' comp coverage.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Federal programs replace South Dakota's voluntary workers' comp system for specific employees. Your federal government workers receive benefits through FECA, not state coverage. Railroad employees operating in South Dakota fall under FELA. Maritime workers on navigable waters get coverage through the Longshore and Harbor Workers' Compensation Act. Independent contractors and unpaid volunteers remain excluded from federal and state requirements.
How to Get the Best Workers' Comp Insurance in South Dakota
Getting the right workers' comp coverage for your business means matching your industry's specific risks with appropriate protection at competitive rates.
- 1Determine if you need workers' comp coverage in South Dakota
South Dakota doesn't legally require workers' comp insurance, but adding even one employee exposes you to significant liability if they get hurt on the job. Check whether exemptions apply to your business structure. Sole proprietors and partners are automatically excluded but can opt in. Corporate officers and LLC members are automatically included but can opt out. Independent contractors working outside your normal business operations may be excluded, though misclassifying actual employees as contractors creates legal headaches and financial penalties you want to avoid.
- 2Gather your business information
You need your employee count, annual payroll and NCCI classification codes to get accurate quotes. South Dakota uses the NCCI system with roughly 700 industry classifications that set your base rates.
Get these numbers right. Estimating your payroll or picking the wrong classification code leads to surprise audit bills or discovering you lack coverage when filing a claim. Construction and manufacturing businesses should pay extra attention since your classification directly impacts rates. South Dakota's workers' comp rates have stayed relatively stable over the past five years, hovering around the national average.
- 3Request workers' comp quotes from multiple carriers
Compare quotes from at least three insurers to understand your business insurance costs. Make Travelers one of your quotes since they contract with South Dakota as the state fund carrier through NCCI.
Travelers administers South Dakota's assigned risk market for businesses that can't secure voluntary coverage. Private insurers typically price competitively against state fund rates. The July 1, 2025 filing dropped voluntary market loss costs by 3.9% in South Dakota, meaning carriers may offer different pricing even for identical coverage and class codes.
- 4Research providers with industry experience
Look past cheap business insurance rates and find insurers who understand your industry risks and South Dakota's regulatory landscape. Construction and high-risk businesses benefit from carriers experienced with NCCI codes and South Dakota's voluntary market structure rather than general insurers offering low rates without specialized knowledge of your industry.
- 5Evaluate your top provider options
Review each insurer's track record to identify the best insurance for your business:
- Verify claim processing speed, customer service quality and complaint history with South Dakota's Division of Insurance
- Ask about return-to-work programs and safety consultations that can reduce your experience mod over time
- Confirm the carrier understands South Dakota's three-year claims lookback period for experience rating
- Look for discount programs like Merit Rating (up to 10% off for businesses paying under $3,750 annually) and Scheduled Rating (up to 24% off for participating in carrier safety programs)
- 6Review and purchase your workers' compensation policy
Read your policy terms carefully, focusing on coverage limits, exclusions and South Dakota-specific provisions. Pick payment options matching your cash flow, such as pay-as-you-go workers' comp insurance for seasonal operations where premiums adjust to actual payroll instead of estimates. Corporate officers and LLC members should decide whether to elect exemption, remembering South Dakota requires using $54,600 minimum and $213,200 maximum payroll amounts for calculating owner premiums.
- 7Reassess before annual renewal
Review how your business changed before your policy renews. Check your current employee count, examine claims you filed and confirm your NCCI-calculated experience modification rate.
Business changes affect your premium. Hiring employees, expanding your workspace or shifting your operations all matter. Tell your insurer about these changes so you're not underinsured or overpaying. South Dakota ranks 25th nationally for workers' comp costs, and the July 1, 2025 filing reflects market adjustments that could shift your renewal pricing despite the state's historically stable rate environment.
Best South Dakota Workers' Compensation Insurance: Bottom Line
NEXT, The Hartford and Simply Business rank as South Dakota's top workers' comp insurers. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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.
sources
- National Council on Compensation Insurance. "2025 State of the Line Guide." Accessed December 31, 2025.
- National Council on Compensation Insurance. "Summary of the Proposed South Dakota Workers Compensation Loss Cost and Assigned Risk Rate Filing Effective July 1, 2025." Accessed December 31, 2025.
- South Dakota Department of Labor and Regulation. "Workers' Compensation - Employer Rights and Responsibilities." Accessed December 31, 2025.
- South Dakota Department of Labor and Regulation. "Workers' Compensation - Rates." Accessed December 31, 2025.