To determine the best workers' compensation insurance company in South Dakota, MoneyGeek analyzed affordability, customer satisfaction, financial stability and the ease of obtaining online quotes. The Hartford is the top provider in South Dakota overall.
Even though workers' compensation insurance isn’t a legal requirement in South Dakota, it is wise for businesses to have. It provides financial protection for both the business owner and their employees, covering the cost of work-related medical expenses and lost wages.
Best Workers’ Compensation Insurance in South Dakota
Best Workers’ Compensation Insurance in South Dakota
The company we ranked as the best overall for workers' comp insurance in South Dakota is The Hartford, with a MoneyGeek score of 97 out of 100. Its average monthly cost is $162, but rates can vary due to factors such as the size of the business, the industry, the number of employees and claims history.
How was this MoneyGeek score calculated?
- Costs an average of $162 per month
- High customer satisfaction score
- Strong financial stability rating
- Offers a quote in one minute and 18 seconds
Established in 1810, The Hartford offers the best workers’ compensation insurance in South Dakota according to our study. The company has a very low rate of customer complaints based on data from the National Association of Insurance Commissioners (NAIC), indicating that policyholders receive excellent service and support. In terms of affordability, The Hartford is the second-cheapest option among five insurers. With an A+ rating from AM Best, the company has a strong ability to meet its financial obligations to policyholders. Additionally, The Hartford stands out for its quick online quote process, taking just over a minute.
- Average monthly rate of $141
- Offers fast online quotes
- Financially stable
Our runner-up pick Thimble is the most affordable provider of workers' comp insurance in South Dakota with an average monthly rate of $141, making it an attractive choice for small businesses. Thimble provides fast quotes, with an impressive average processing time of just 37 seconds. Additionally, the company holds an A rating from AM Best, which is lower than some competitors but still indicates its ongoing ability to pay out claims.
On the other hand, Thimble received the highest number of customer complaints out of the insurers we evaluated. Though Thimble offers competitive pricing and a quick quote process, potential customers should consider the company's customer service track record before making a decision.
- Policies cost an average of $196 per month
- A++ rating from AM Best for financial stability
- High customer satisfaction ratings
- Provides fast online quotes
Although biBERK’s workers' compensation insurance in South Dakota costs more than some competitors, the company is the most financially stable in our comparison group. biBERK holds an A++ rating from AM Best, the highest possible rating, indicating that it is a trustworthy provider and is able to pay out claims. biBERK also received high customer satisfaction ratings, reflecting its commitment to providing excellent service and support. Its online quote process is efficient and takes an average of 1 minute and 37 seconds.
- Costs around $219 per month
- Excellent customer satisfaction score
- Takes under two minutes to get a quote
Next’s workers' compensation insurance costs around $219 per month, which is higher than most insurers. It earned excellent customer satisfaction ratings, indicating that it provides quality service and support to policyholders. Next also generates fast online quotes, taking just under two minutes to provide a quote for potential customers. However, potential customers should note that Next holds an A- rating from AM Best, indicating slightly lower financial stability compared to insurers with higher ratings.
- Average monthly premiums of $291
- A+ financial strength rating from AM Best
- High customer satisfaction score
Nationwide charges the highest monthly premiums among the providers we compared, with an average rate of $291 per month. The company earned an A+ financial strength rating from AM Best, demonstrating its strong financial stability and ability to meet ongoing financial obligations. Nationwide also has a solid customer satisfaction track record. However, its online quote process is relatively slow and takes around three minutes on average.
Cheapest Workers’ Compensation Insurance in South Dakota
The cheapest workers' comp insurance in South Dakota is offered by Thimble at $141 per month. Thimble is the most affordable option for businesses with 20 employees and $1,250,000 in annual payroll costs. Keep in mind that a business's number of employees and payroll amount will affect its premium.
Thimble is an ideal fit for business owners who have a limited budget as it's the cheapest option in the state at $141 per month. It also offers the fastest quotes, taking just over 30 seconds to process requests. The company earned a high financial stability score, meaning that policyholders can trust that it will be able to pay out claims. One drawback to consider is that Thimble receives the highest number of customer complaints based on NAIC complaint index data.
We ranked companies based on their average monthly cost to determine the cheapest insurer, but the most affordable option for your business may vary based on several factors. To help you compare costs, the table below displays the annual and monthly costs for insuring a South Dakota business with 20 employees. The companies are ranked based on their monthly cost.
Best Workers’ Compensation Insurance for Micro Businesses in South Dakota
For micro businesses in South Dakota with five employees and an annual payroll amount of $312,500, The Hartford is MoneyGeek’s top choice. Its monthly premiums average $63.
A business with one to nine employees is generally considered a micro business. While employee count influences the cost of workers' compensation insurance, payroll typically has a bigger impact on the cost of your premium.
The Hartford stands out as the ideal choice for micro businesses in South Dakota, offering workers’ compensation insurance at the cheapest rate of $63 per month. The company's exceptional customer satisfaction track record indicates that policyholders receive reliable service and support. Moreover, The Hartford provides quick online quotes, typically processing requests in about a minute and 18 seconds. While The Hartford excels in these areas, it's also important to consider other factors such as coverage options and additional services when shopping for an insurance policy.
Best Workers’ Compensation Insurance for Midsize Businesses in South Dakota
For businesses with 100 employees and an annual payroll amount of $6,250,000, The Hartford is the top-rated provider in South Dakota, with a monthly premium of $681. While employee count influences the cost of workers' compensation insurance, payroll generally has a more significant impact on premiums.
The Hartford earned high scores across the board, making it the top choice for midsize businesses seeking workers' compensation insurance in South Dakota. It offers competitive pricing, ranking as the second-cheapest provider with an average annual cost of $8,169. With its strong financial rating of A+ from AM Best, the company can meet its financial obligations and provide timely compensation in the event of work-related injuries or illnesses. It also receives the fewest customer complaints overall based on data from the NAIC.
How Much Is Workers’ Compensation Insurance in South Dakota?
The average monthly cost of workers' compensation insurance in South Dakota for a business with 20 employees is $202, which is slightly higher than the national average of $168 per month.
Our policy limits for this analysis were set as follows:
- $1 million total policy limit
- $1 million per accident limit
- $1 million per employee limit
The total policy limit refers to the maximum amount the insurer will cover in a given policy period. Meanwhile, the per accident limit is the maximum coverage for a single incident and the per employee limit is the maximum coverage for an individual employee. Costs incurred by the business above these limits would need to be covered out of pocket.
The table below shows the average cost of workers' compensation insurance for businesses with five, 20 and 100 employees. Employee count and payroll are the primary factors that determine your premiums.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in South Dakota
The cost of workers' compensation insurance can vary for each business, depending on several factors:
Businesses are typically charged a rate — called a premium index rate — for every $100 of payroll. Higher payroll costs therefore result in higher premiums. In South Dakota, the average premium index rate in 2022 was $1.30 per $100 of payroll, which is very close to the national median.
Number of employees
Companies with a larger workforce face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
Employee class codes represent the type of work employees perform. Each class code has a corresponding rate charged for every $100 of payroll. Industries with a higher risk of injury, like construction, generally have higher rates compared to low-risk industries like consulting.
Businesses with a track record of frequent or severe claims may face increased premiums as insurers adjust pricing based on claims history.
According to data from the U.S. Bureau of Labor Statistics (BLS), there were over 2.6 million nonfatal workplace injuries in the private industry in 2021, highlighting the importance of workers' compensation insurance.
Do You Need Workers’ Compensation Insurance in South Dakota?
In South Dakota, there is no legal requirement for employers to have workers' compensation insurance, but it is strongly advised. If an employer does not have insurance and an employee gets injured, the employer can be held liable for damages.
The Workers' Compensation program in South Dakota is an insurance program that provides medical and disability benefits for work-related injuries and illnesses for employers who choose to have coverage.
Workers’ comp insurance in South Dakota doesn’t apply to:
Domestic servants, except those working for an employer for more than 20 hours in any calendar week and for more than six weeks in any 13-week period. Farm or agricultural laborers. Independent contractors who are certified as exempt.
Even though you may be legally exempt, having workers' compensation insurance ensures that you are financially protected and reduces your risk of having to pay for workplace injuries.
Workers' compensation insurance in South Dakota isn’t legally required, but it is highly recommended for employers. If an employer chooses not to have insurance and an employee suffers an injury, the employer can face a lawsuit in civil court.
What Does Workers’ Compensation Insurance Cover in South Dakota?
Workers' compensation insurance in South Dakota provides several benefits for employees who experience work-related injuries or illnesses:
- Medical Care: Workers' comp insurance covers the cost of necessary medical treatment and healthcare services related to the injury or illness.
- Disability Benefits: If an employee is unable to work due to their condition, workers' comp may provide disability benefits to compensate for lost wages during the recovery period.
- Rehabilitation Services: Workers' comp insurance may cover the costs of rehabilitation programs, including physical therapy, to help injured employees recover and return to work.
Note that the employer is the policyholder of workers' compensation insurance, and it is their responsibility to provide coverage and ensure that employees receive these benefits when needed.
Workers’ Compensation Insurance Resources for Employees in South Dakota
The South Dakota Department of Labor and Regulation — specifically the Division of Labor & Management — oversees workers' compensation in the state.
If an employee is injured or falls ill due to their work, they will need to begin the claims process by reporting the injury to their employer in writing. They should seek immediate medical attention and keep their employer informed about their medical condition and when they will be able to return to work. If the employer refuses to complete a First Report of Injury form, employees should contact the Division of Labor and Management for further assistance.
Frequently Asked Questions About Workers’ Compensation Insurance in South Dakota
It's important to choose the right workers' compensation insurance provider for you, and there are many factors to keep in mind before making your decision. Explore answers to commonly asked questions about finding the best workers' compensation insurance in South Dakota to help you in your search.
About Melissa Wylie
- Oregon Department of Consumer and Business Services. "Premium Index Rates." Accessed May 24, 2023.
- South Dakota Department of Labor and Regulation. "Workers' Compensation Coverage." Accessed May 24, 2023.
- South Dakota Department of Labor and Regulation. "Workers' Compensation Employee Guide." Accessed May 24, 2023.
- The Hartford. "About Us: Insurance History." Accessed May 24, 2023.
- U.S. Bureau of Labor Statistics. "Injuries, Illnesses and Fatalities: Latest Numbers." Accessed May 25, 2023.
- U.S. Bureau of Labor Statistics. "State Occupational Injuries, Illnesses and Fatalities." Accessed May 25, 2023.