Best Workers' Compensation Insurance in South Dakota (2024)

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.

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.

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.

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.

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.

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 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.

The cost of workers' compensation insurance can vary for each business, depending on several factors:

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 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.

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.

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.