NEXT is South Dakota’s best workers' compensation insurance provider, scoring 98 out of 100. The company offers a strong combination of reliable customer service, very low workers' comp rates and an extensive coverage selection. Thimble and The Hartford are good runners-up to consider.
Cheapest Workers' Comp Insurance in South Dakota
Updated: June 17, 2025
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Key Takeaways
NEXT, The Hartford, Thimble, biBerk and Nationwide are the best cheap workers' comp insurance providers in South Dakota.
For most small businesses in South Dakota, workers' compensation coverage costs around $982 per year or $86 per month.
Workers' comp insurance is not required in South Dakota, but purchasing coverage protects your business from potential liability costs.
Best Cheap Workers’ Comp Insurance Companies in South Dakota
| Next | 98 | $158 |
| Thimble | 91 | $269 |
| The Hartford | 94 | $302 |
| biBERK | 90 | $372 |
| Nationwide | 86 | $539 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Lowest rates in South Dakota
Great customer service ratings
Instant quotes available online
cons
Not the most affordable for large firms
COMPANY HIGHLIGHTS
NEXT is South Dakota's best workers' compensation provider. It offers competitive monthly rates averaging $158 while maintaining an outstanding 4.7-star customer satisfaction rating across 600,000+ clients in 1,300 business categories.
NEXT distinguishes itself through features like instant certificate access and 24/7 chat support, delivering exceptional service alongside the state's second-lowest overall rates. NEXT combines affordability, quality service and innovative conveniences, making it a strong choice for workers' comp coverage in South Dakota.
How Much Is Workers' Comp Insurance in South Dakota?
Workers' comp rates for South Dakota businesses range from $982 to $10,192 per year. This range applies only to software development companies. Your actual rates will vary based on:
- Number of employees
- Industry risk level
- Specific work performed by employees
- Claims history
| Businesses with five or less employees | $86 | $982 |
| Medium-size small businesses | $212 | $2,458 |
| Larger small businesses | $878 | $10,192 |
Factors That Impact Workers’ Compensation Costs in South Dakota
The cost of workers' compensation insurance varies for each business based on several factors:
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium.
South Dakota Workers' Comp Insurance: Buyer's Guide
Finding the right business insurance can be challenging. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in South Dakota
Here are the steps to help your organization get the best workers' compensation policy possible:
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes — online comparison sites versus speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in South Dakota?
No, South Dakota does not require employers to carry workers' compensation insurance. There is no law in South Dakota requiring any employer to carry workers' compensation insurance. However, we do recommend purchasing a policy for your business to avoid liability costs that may happen.
What Does Workers’ Compensation Insurance Cover in South Dakota?
Workers' compensation insurance provides essential benefits to employees with work-related injuries or illnesses. This coverage typically includes medical care, disability benefits and lost wages for affected workers, paying 66% of weekly wages under South Dakota law. It protects employees while shielding businesses from potential legal claims related to workplace injuries or illnesses.
Best Workers' Compensation Insurance South Dakota: Bottom Line
NEXT, Thimble and The Hartford are the best and most affordable workers' comp insurance providers in South Dakota. While we recommend these companies, compare rates and consult similar businesses in your industry to find the best deal.
Workers' Comp Insurance in South Dakota: FAQ
Below are answers to frequently asked questions about South Dakota workers' comp insurance from MoneyGeek experts:
Which company has the best workers’ compensation insurance in South Dakota?
NEXT offers South Dakota's best workers' compensation insurance with competitive pricing (averaging about $170 per month) and a low complaint index. However, your best insurance option depends on your industry, workforce size and state requirements.
Does South Dakota require businesses to have workers’ compensation insurance?
In South Dakota, workers' comp insurance is mandatory for all businesses, though sole proprietors, partners and corporate officers with full ownership may opt out.
How much does workers’ compensation insurance cost in South Dakota?
The average monthly cost of workers' compensation insurance for South Dakota businesses with around 20 employees is $212.
How We Rated Workers' Comp Insurance Companies in South Dakota
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
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
- NEXT. "Customer Reviews." Accessed June 10, 2025.