NEXT tops our analysis of South Dakota business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in South Dakota
NEXT tops our South Dakota business insurance rankings with a MoneyGeek score of 4.63 out of 5.
Find affordable coverage that protects your small business in South Dakota below.
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Updated: August 24, 2025
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Key Takeaways
Small business owners can get the best business insurance in South Dakota from NEXT, The Hartford and Simply Business.
The best business insurance in South Dakota depends on your industry risks, number of employees and desired coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in South Dakota
| NEXT | 4.63 | 4 | 1 | 2 |
| The Hartford | 4.60 | 2 | 2 | 3 |
| Simply Business | 4.49 | 4 | 5 | 1 |
| Nationwide | 4.47 | 7 | 2 | 4 |
| Coverdash | 4.41 | 5 | 6 | 2 |
| biBERK | 4.38 | 8 | 2 | 5 |
| Progressive Commercial | 4.32 | 3 | 7 | 5 |
| Thimble | 4.31 | 1 | 8 | 5 |
| Hiscox | 4.27 | 6 | 4 | 6 |
| Chubb | 4.26 | 9 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
NEXT tops our analysis as South Dakota's best provider for general liability coverage, business owner's policies (BOP), professional liability insurance and workers' compensation insurance.
| Business Owners Policy | NEXT | 4.62 |
| General Liability | NEXT | 4.56 |
| General Liability | The Hartford | 4.56 |
| Professional Liability (E&O) | NEXT | 4.73 |
| Workers Compensation | NEXT | 4.59 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best South Dakota Small Business Insurance Reviews
We analyzed business insurance providers across South Dakota to identify the top three options for small business owners. Our research reveals what makes each company stand out for comprehensive coverage needs.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$96This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Our Survey: Likely to Be Recommended to Others
4.8/5
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$76This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$65This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5Our Survey: Likely to Be Recommended to Others
4.5/5
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.4/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$89This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$67This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.7/5.0Our Survey: Likely to Be Recommended to Others
4.2/5.0
Cheapest Business Insurance Companies in South Dakota
The Hartford provides the most affordable business insurance in South Dakota with rates of $78 monthly ($940 annually). Thimble and Simply Business follow as cost-effective options, with monthly premiums of $87 and $90 respectively. See the complete list of providers and their rates in the table below.
| The Hartford | $78 | $940 |
| Thimble | $87 | $1,046 |
| Simply Business | $90 | $1,084 |
| Progressive Commercial | $93 | $1,111 |
| NEXT | $94 | $1,122 |
| Coverdash | $94 | $1,133 |
| Nationwide | $95 | $1,140 |
| biBERK | $98 | $1,170 |
| Hiscox | $101 | $1,212 |
| Chubb | $110 | $1,325 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in South Dakota
South Dakota businesses can find the cheapest general liability coverage through The Hartford at $76 monthly. This rate beats Simply Business, which ranks second with $89 per month. Compare all provider rates in the table below.
| The Hartford | $76 | $916 |
| Simply Business | $89 | $1,074 |
| Nationwide | $91 | $1,088 |
| Progressive Commercial | $93 | $1,121 |
| NEXT | $96 | $1,156 |
| Coverdash | $97 | $1,160 |
| Thimble | $100 | $1,204 |
| Hiscox | $107 | $1,281 |
| biBERK | $107 | $1,282 |
| Chubb | $111 | $1,333 |
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 general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in South Dakota
The Hartford offers the most affordable professional liability insurance (E&O) at $67 monthly ($800 annually). NEXT provides another budget-friendly option for business owners in the state.
| The Hartford | $67 | $800 |
| NEXT | $68 | $815 |
| Progressive Commercial | $70 | $846 |
| Thimble | $71 | $848 |
| Simply Business | $72 | $858 |
| Hiscox | $72 | $869 |
| Coverdash | $73 | $872 |
| biBERK | $74 | $890 |
| Nationwide | $77 | $926 |
| Chubb | $83 | $997 |
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 professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in South Dakota
The Hartford offers the cheapest workers' comp insurance in South Dakota at $65 monthly ($774 annually). NEXT and Thimble also provide competitive rates, making all three solid choices for Mount Rushmore State businesses.
| 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. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in South Dakota
The Hartford offers the cheapest BOP rates in South Dakota at $106 monthly ($1,269 annually). Business owners can also find affordable BOP insurance with Thimble, Simply Business and Nationwide.
| The Hartford | $106 | $1,269 |
| Thimble | $112 | $1,343 |
| Simply Business | $133 | $1,601 |
| Nationwide | $137 | $1,639 |
| biBERK | $139 | $1,668 |
| Progressive Commercial | $140 | $1,685 |
| Coverdash | $140 | $1,685 |
| NEXT | $145 | $1,743 |
| Hiscox | $158 | $1,895 |
| Chubb | $168 | $2,020 |
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 BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in South Dakota?
Business insurance in South Dakota costs between $69 to $138 monthly, with workers' compensation being the most affordable and business owner's policies the most expensive. Rates vary based on the coverage type your business needs.
| BOP | $138 |
| General Liability | $97 |
| Professional Liability (E&O) | $73 |
| Workers Comp | $69 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in South Dakota vary widely based on industry and coverage types. Speech therapists pay just $6 monthly for workers' compensation, while pressure washing businesses pay $1,279 monthly for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $30 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Want to know why your premiums are so high? We listed several factors that impact your premiums:
Industry risk level
Your business type has the biggest impact on what you'll pay. Construction companies face much higher rates than consultants because insurers know construction sites have more accidents. For example, a contractor pays hundreds monthly, while a consultant pays just tens of dollars.
Geographic location and weather risks
Where you operate makes a big difference in your costs. According to the National Centers for Environmental Information, South Dakota faces frequent severe storms, with an average of 36 tornadoes yearly. These weather risks, plus severe winter storms in northern regions, increase commercial property insurance costs. Businesses in Rapid City and Sioux Falls pay more due to higher storm exposure.
Business size
The more employees you have, the more you'll pay. Workers' comp is calculated per $100 of payroll, and general liability considers your revenue and customer volume. A landscaping crew with 10 workers pays far more than someone working alone from home.
Claims history
Past claims stick with you for years and can spike your premiums quickly. A single liability claim impacts rates across multiple coverage types. Maintain a claims-free record, and insurers will reward you with better pricing.
Coverage types and limits
Your premium reflects the coverage you select and how much protection you want. Higher limits mean higher costs, though business owner's policies can save money by bundling multiple coverages into one package.
Years in business
New businesses pay higher premiums because insurers can't evaluate their track record yet. Once you've operated for a few years with a clean claims history, your rates drop as you prove yourself a reliable risk.
Professional certifications
Getting safety training or professional licenses often reduces what you pay, particularly for higher-risk work. OSHA certifications tell insurers you're serious about preventing accidents; many offer discounts for these credentials.
South Dakota Business Insurance Buying Guide
Getting business insurance can feel overwhelming when you're focused on running your business. Here's the thing about South Dakota business insurance: it's actually pretty straightforward, and we'll walk you through each step to help you make confident decisions.
What Coverage Is Required?
We've researched all South Dakota business insurance requirements to save you time. Check the section below for a complete breakdown of what coverage your business needs.
Workers' comp
South Dakota requires workers' compensation insurance for most businesses, but it's more flexible than many states. You must carry workers' comp if you have one or more employees, including part-time and seasonal workers. However, South Dakota allows corporate officers to opt out of coverage, and sole proprietors and business partners are exempt unless they choose coverage. The state has specific exemptions for agricultural workers and family members working in family businesses, making it one of the more lenient states for coverage requirements.
Commercial auto insurance
Small businesses that own vehicles or require employees to drive for work need commercial auto insurance. South Dakota requires all vehicles to carry at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. Given South Dakota's rural roads and long distances between cities, businesses should consider higher limits for better financial protection.
Unemployment insurance
South Dakota requires unemployment insurance for businesses that pay wages of $1,500 or more in any quarter or employ one or more workers for 20 weeks during a calendar year. You must register with the South Dakota Department of Labor and Regulation and pay quarterly contributions based on your payroll and experience rating.
Professional liability insurance
If you hold a professional license in South Dakota for medical, legal, architectural or engineering work, you'll need professional liability insurance. Health care providers must carry malpractice coverage, while other professionals should check with their licensing boards for specific requirements. The coverage amounts vary by profession and practice type.
Contractor bonds and insurance
If you have a contractor license in South Dakota, you'll need to carry liability insurance and post a surety bond depending on your work type. General contractors need at least $50,000 in liability coverage, while specialty contractors have varying requirements. This protects customers if you don't complete work as promised or follow licensing rules.
What Coverage Do We Recommend?
South Dakota keeps business insurance regulations minimal, which puts the burden on you to choose wisely. We've analyzed the best coverage options for the state's leading industries:
Food | General liability, product liability, commercial property, equipment breakdown, business interruption, contamination coverage, recall coverage, tornado coverage, hail damage protection, drought coverage | South Dakota food processors handle corn, soybeans, beef and pork with contamination risks and tornado damage exposure. Drought conditions affect crop quality and supply chains, while hail can devastate processing facilities and agricultural inputs. |
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, agricultural equipment manufacturing, tornado coverage, hail damage protection, winter weather protection | South Dakota manufacturers in agricultural equipment, machinery and food processing face tornado damage, hail risks and severe winter weather shutdowns. Agricultural equipment manufacturing requires specialized liability for harvest-critical timing and equipment performance. |
Trucking | Commercial auto, cargo coverage, general liability, workers' compensation, tornado coverage, winter weather coverage, agricultural transport, livestock transport, I-90 corridor coverage | South Dakota trucking companies transport agricultural products and livestock through severe weather, including tornadoes and blizzards. The I-90 corridor operations face extreme weather delays, while livestock transportation creates specialized animal welfare and containment liability. |
Construction/Contractor | General liability, workers' compensation, commercial auto, builder's risk, professional liability, tornado coverage, hail damage protection, winter weather delays, agricultural facility construction | South Dakota construction faces tornado damage, devastating hailstorms and severe winter weather delays. Agricultural facility construction requires specialized coverage for grain storage, livestock facilities, and farm equipment buildings with ventilation and safety requirements. |
How to Get the Best Cheap Business Insurance in South Dakota
Finding the right business insurance in South Dakota coverage feels overwhelming when running a small operation. You can cut through the noise and secure financial protection that fits your budget and business needs using these steps:
- 1
Assess your actual risks first
Look at what could realistically go wrong in your business, not what insurance salespeople tell you to buy. A food truck owner prioritizes equipment coverage over cyber liability, while a consultant focuses on professional liability.
- 2
Get quotes from multiple insurers
Insurance companies assess risks in different ways, so you'll see price differences even for the same coverage. That plumbing contractor can find much lower rates elsewhere by comparing at least three providers, sometimes saving hundreds or thousands annually.
- 3
Choose providers based on service quality
Research claims handling, financial stability and industry expertise before deciding. An oil field services company needs an insurer experienced with pollution liability, while a restaurant wants fast equipment breakdown claim processing.
- 4
Maximize available discounts
Bundle policies when logical, time renewals strategically and leverage safety programs or claims-free history. A construction company with documented safety training and combined coverage can cut premiums compared to similar businesses.
- 5
Review coverage annually
Your risks change as you grow, hire employees or add services. A small retail shop branching out to multiple locations needs different coverage than when it started. Regular reviews ensure you have appropriate protection at competitive rates.
South Dakota Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are South Dakota's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in South Dakota: FAQ
Finding the right business insurance in South Dakota raises many questions for small business owners. Below, we answer the most frequently asked questions:
What business insurance is required by law in South Dakota?
South Dakota mandates workers' compensation for businesses with one or more employees. Commercial auto insurance is required with minimum limits of $25,000/$50,000/$25,000. Contractors must carry surety bonds.
How much does business insurance cost in South Dakota?
Business insurance in South Dakota typically ranges from $69 to $138 per month, depending on coverage type. Workers' compensation is the most affordable at $69, while BOPs run $138 monthly. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in South Dakota?
The Hartford offers the lowest rates at $78 monthly in South Dakota, with Thimble ($87) and Simply Business ($90) following behind. Always compare quotes since rates vary based on specific risks.
What business insurance do I need for my small business in South Dakota?
Begin with general liability insurance to protect against customer injuries and property damage claims. Add workers' compensation and commercial auto for company vehicles if you employ staff. Retail stores need property coverage, while contractors require equipment protection.
What is the best business insurance company in South Dakota?
NEXT leads business insurance providers in South Dakota with a 4.63 out of 5 MoneyGeek score. The Hartford and Simply Business round out the top options. Consider comparing multiple carriers to secure coverage that matches your business requirements.
Do small businesses in South Dakota need workers' compensation insurance?
Workers' compensation insurance is required for businesses with one or more employees in South Dakota. However, corporate officers can opt out, and sole proprietors are exempt unless they choose coverage. Most business owners opt for protection against workplace injury lawsuits.
What factors affect business insurance costs in South Dakota?
Your industry impacts insurance costs, with construction businesses paying higher rates than retail stores. Location within South Dakota affects rates, with storm-prone areas costing more. Employee count and claims history influence costs, while safety programs offer discounts.
How do I get cheap business insurance in South Dakota?
Compare quotes from multiple insurers like NEXT and The Hartford, the top-rated providers in South Dakota. Bundle policies and implement safety programs to secure additional discounts.
What's the difference between general liability and errors and omissions (professional liability) insurance in South Dakota?
General liability insurance protects against physical injuries and property damage. Professional liability (E&O) covers financial losses from service mistakes, negligence or poor advice in your professional work.
Can I get business insurance quotes online in South Dakota?
Yes, top insurance providers offer online quotes in South Dakota. Have your business information ready for accurate quotes, though complex businesses may need an agent's expertise for specialized coverage.
How We Scored the Best Business Insurance Companies in South Dakota
Small business owners in South Dakota need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help South Dakota entrepreneurs navigate challenges like severe weather risks and the state's flexible workers' compensation laws.
We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.
- Affordability (50% of score): We analyze premium costs across multiple carriers and coverage types, comparing rates for businesses with similar profiles to find the most competitive options.
- Customer experience (30% of score): Our evaluation includes claims processing speed, customer service responsiveness and digital tools that make policy management easier.
- Coverage options (15% of score): We examine available policy types, endorsements and customization options to meet varied business needs.
- Financial strength (5% of score): We review AM Best ratings and other financial indicators to ensure carriers can reliably pay claims.
This approach helps South Dakota small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
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
- National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters." Accessed August 24, 2025.
- The Hartford. "Customer Claims Ratings and Reviews." Accessed August 24, 2025.
- Trustpilot. "Simply Business US." Accessed August 24, 2025.
- Trustpilot. "The Hartford." Accessed August 24, 2025.