Find the Best Business Insurance Options in South Dakota
South Dakota has more than 85,000 registered small businesses across the state. Whatever their niche, all these businesses must be protected by the right business insurance policy. Without this coverage, the business could face potentially significant financial losses due to a number of incidents like fires, theft, vandalism, and more. South Dakota is a very attractive place for many professionals to start a business due to various factors like capital gains, corporate income, corporate gains taxes, and a lack of personal income in the area.
Fortunately, a South Dakota independent insurance agent can help your company get set up with the right business insurance. They'll get you matched to the right policy with ease. But first, here's an overview of business insurance in South Dakota and why it's a wise decision to get it.
Best Business Insurance Companies in South Dakota
When looking for business insurance in South Dakota, you want to ensure you'll walk away with top-quality coverage. Though many insurers offer business insurance, factors like customer service, financial strength, and Better Business Bureau (BBB) ratings should be high on your list of considerations when making your selection. We're hoping to help by putting together a list of just a handful of the best business insurance companies in South Dakota for you. Start with these outstanding carriers.
- Progressive: Progressive is a longstanding carrier with excellent financial strength ratings. It also offers 24/7/365 customer service. Progressive has every type of business insurance you could need in South Dakota, including liability, workers' comp, business owner's policies, and more.
- Stillwater: Stillwater has outstanding ratings from both AM Best and the BBB. The carrier also offers 24/7 claims reporting. Stillwater offers a convenient business owners policy package for small businesses in South Dakota.
- Travelers: Travelers is also a longstanding carrier with excellent customer service ratings. The carrier offers many discount options as well. Business insurance options in South Dakota include just about anything you could need, including liability, inland marine, and workers' comp.
A South Dakota independent insurance agent can help you get set up with a business insurance policy from one of these top-rated carriers.
South Dakota Business Insurance Requirements
According to state law, business insurance isn't required in South Dakota. This includes workers' compensation insurance, though the South Dakota Department of Labor and Regulation does strongly recommends that all businesses with at least one employee get coverage. However, you'll likely want to get several types of coverage for your business to protect against potentially large financial losses due to a number of incidents. Depending on your business's needs, consider getting the following types of optional business insurance coverage in South Dakota:
- Commercial general liability insurance
- Commercial property insurance
- Workers' compensation
- Commercial auto insurance
- Cyber liability insurance
A South Dakota independent insurance agent can also recommend the right types of business insurance for your company.
What Business Insurance Covers in South Dakota
What your South Dakota business insurance covers depends on which types of coverage you choose to put in your policy. You'll probably want to get at least commercial general liability coverage, commercial auto coverage, and workers' compensation coverage if you have employees. Though business insurance is technically optional by South Dakota state law, there are still instances in which you might be required to have certain types of coverage. If you have business vehicles, you'll need at least the state's mandated minimum commercial auto insurance coverage for each of them.
Liability Coverage Options for Small Businesses in South Dakota
Having a commercial general liability (CGL) insurance policy for your South Dakota business can protect it against the cost of lawsuits related to third-party claims of bodily injury or personal property damage. If a customer or guest sues your business for one of these claims, you could have to pay attorney, court, and defense costs. However, a CGL policy can help reimburse your business for all these expenses and potentially even save you from bankruptcy in the case of a larger lawsuit.
Property Coverage Options for Small Businesses in South Dakota
Commercial property insurance can help protect your business's office building, storefront, or other physical location's structure against damage caused by a number of threats, including vandalism and fire damage. It can also help pay to repair or replace much of the business property stored inside, including inventory and equipment. Without this coverage, your business could have to pay out of pocket to repair or replace stolen or damaged property.
Other Insurance Options for Small Business Owners in South Dakota
If you have any employees, your South Dakota business could greatly benefit from workers' compensation insurance. This coverage helps pay for costs associated with employee injuries or illnesses caused by job duties or the work environment. In turn, it also prevents these employees and their families from filing lawsuits against your business for related incidents.
You may also want commercial auto insurance if your business uses company vehicles for business purposes, such as deliveries. This coverage can help pay for repairs or to replace company vehicles after incidents of vandalism or theft. It can also help pay for legal expenses if one of your drivers causes an accident with a company vehicle.
Finally, a cyber liability insurance policy can help protect your business against data breaches and more. If customers' credit card data gets stolen, exposed, or distributed by hackers, your business could face lawsuits or worse. This coverage can help pay for many of the costs associated with these devastating incidents.
Average Cost of Business Insurance in South Dakota
The average cost of business insurance in South Dakota can be difficult to predict without knowing more about your unique business. That's because business insurance rates vary by a number of different factors, including the type of business you run and its unique risks. The type of operations your business has, and its exact location, also impact business insurance costs, as does the number of employees you have. Further, the types and amounts of insurance purchased, including policy limits and other coverage options, will also impact the cost of your business insurance in South Dakota. A South Dakota independent insurance agent can help provide you with exact quotes for business insurance in your town.
How does your city measure up to the national average?
Number of businesses in the US: 30,819,176
Burglary rate per 1,000 residents in the US: 3.76
Auto theft rate per 1,000 vehicles in the US: 2.29
| City | No. of businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Aberdeen | 2,601 | 4.05 | 1.52 |
| Belle Fourche | 861 | 1.25 | 0.89 |
| Box Elder | 516 | 5.36 | 2.48 |
| Brandon | 1,066 | 0.39 | 0.09 |
| Brookings | 1,864 | 1.13 | 0.69 |
| Madison | 1,092 | 2.12 | 0.66 |
| Rapid City | 7,495 | 6.39 | 4.19 |
| Sioux Falls | 15,083 | 3.74 | 3.55 |
| Spearfish | 1,666 | 2.45 | 0.84 |
| Sturgis | 873 | 3 | 0.72 |
How Does Your South Dakota City Measure Up?
Commercial property coverage: Your commercial property insurance considers possible weather risks, property crimes, and unexpected fires. All of these events can lead to large business losses if you don't have the right insurance.
Commercial auto insurance: Does your business own one or more company vehicles? If so, you need commercial auto insurance. It's critical to keep your cars and employees safe from theft, accidents, and any other unexpected business vehicle-related incidents.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property coverage: Severe weather, property crime, and flooding have in common that they can all cause serious business losses if you don't have the right commercial property insurance coverage.
Commercial auto insurance: Your company cars need protection against potential accidents, theft, and crime.
Workers’ Compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property insurance: Your business could suffer potentially large financial losses if you don't have the right insurance. Consider the crime rate in Huron, and find out the right amount of protection for your business's property, including your office building or storefront and inventory.
Commercial auto: Commercial auto insurance rates vary depending on the number and types of vehicles you cover, the area's risk of collisions, and the average amount of auto theft in your city. Having coverage can protect company vehicles against theft, vandalism, and much more.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property insurance: Your business's property can get damaged in a number of ways. A bad storm can damage the roof, a thief can steal personal property, or a busted pipe can cause indoor flooding, just to name a few. Without the right coverage, your business would have to swallow these costs.
Commercial auto insurance: Commercial auto insurance protects your business's vehicles that are used for company purposes like deliveries against a host of possible issues, ranging from lawsuits to theft and beyond.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property insurance: Pierre's crime rate, weather risks, and business building details are all factored into commercial property coverage premium costs. Having enough coverage is critical to protect your business's buildings and inventory against a number of different threats.
Commercial auto insurance: If your business owns a vehicle or a fleet of vehicles, you need commercial auto insurance. Your rates are based on a number of factors, including the number and types of vehicles you cover and the risk of collisions and auto theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property coverage: In addition to severe weather events, property crimes like theft and arson can potentially lead to significant business losses if you don't have the right insurance. The crime rate in Rapid City can also affect your coverage rates.
Commercial auto insurance: Your commercial auto insurance rates are based on several factors, like the number and types of vehicles you cover. Plus, the average risk of collisions and auto theft in your city will impact rates.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property coverage: The property crime rate in Sioux Falls is higher than the national average. Property insurance in less safe areas can sometimes be more expensive, so keep that in mind when you're looking at insurance options.
Commercial auto coverage: If your business owns a vehicle or a fleet of vehicles, you need commercial auto insurance. Your rates are based on a number of factors, including the number and types of vehicles you are covering and the risk of collisions and auto theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property insurance: Your commercial property insurance should consider weather risks, property crimes, and unexpected fires. All of these scenarios can lead to large business losses if you don't have the right insurance.
Commercial auto insurance: If your business owns a vehicle or a fleet of vehicles, you need commercial auto insurance. Your rates will be based on a number of factors, including the number and types of vehicles you cover and the risk of collisions and auto theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property insurance: In addition to severe weather events, property crimes like theft and arson can lead to large business losses if you don't have the right insurance. The crime rate in Watertown can even affect your coverage rates.
Commercial auto: If your business owns a vehicle or a fleet of vehicles, you need commercial auto insurance. Rates are calculated based on various factors like the makes and models of the vehicles you cover and the risk of auto theft in your neighborhood.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Commercial property insurance: In addition to severe weather events, property crimes like theft and arson can lead to large business losses if you don't have the right insurance. When you look at insurance, consider the crime rate in Yankton. This rate can affect your coverage rates and help you decide how much protection you need.
Commercial auto insurance: Your commercial auto insurance can protect against many incidents that can affect company vehicles, including lawsuits, theft, vandalism, and more.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who get injured or ill on the job. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
South Dakota Business Insurance FAQs
The average cost of business insurance in South Dakota is hard to predict without knowing more information about your specific business. The type of industry you're in, as well as the number of employees and the amount of coverage you need, are all factors that impact business insurance rates. However, a South Dakota independent insurance agent can help you find exact business insurance quotes in your area.
No, business insurance is not mandatory by state law in South Dakota. However, there may be certain instances in which you're required to have coverage, such as if you rent your business's office or storefront building. A local South Dakota independent insurance agent can help inform you of local business insurance requirements for your exact business.
Your business insurance in South Dakota will be specific to your risk exposures. You'll likely at least want to consider getting commercial general liability insurance, commercial property insurance, workers' compensation insurance, cyber liability insurance, and commercial auto insurance, depending on your unique business's needs.
In South Dakota, commercial general liability insurance covers lawsuit expenses related to claims of third-party personal property damage or bodily injury at the hands of your business or on its premises. Attorney, court, and legal expenses can all be reimbursed by this coverage.
Health insurance plans in South Dakota are only mandatory for businesses with 50 employees or more. However, you may want to offer health insurance benefits to your team, in which case, a South Dakota independent insurance agent can help you find coverage at a great rate.
Our research found that Progressive, Stillwater, and Travelers are the best business insurance companies in South Dakota. We chose these carriers due to excellent customer service and good ratings by AM Best and the BBB, as well as for rates, coverage, and discount options.
A South Dakota independent insurance agent automatically shops and compares coverage from multiple business insurance companies for you to find the best rate. These agents work hard to find the overall best picture of coverage and cost. Once you explain its operations and other details, they also know exactly which types of coverage you need for your unique business. In short, they can save you a lot of time and money.
Do You Know What Your Business Insurance Covers in South Dakota?
https://www.thimble.com/states/south-dakota-business-insurance
https://www.progressivecommercial.com/business-insurance/south-dakota/
https://www.thehartford.com/business-insurance/south-dakota