Insurance for Small Business Owners in South Dakota

Commercial Auto Insurance.

Small business owners whose businesses own vehicles are required to purchase commercial auto insurance coverage in South Dakota. The state requirement includes minimum coverage for business-owned cars of $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage liability. If your vehicle is uninsured, the minimum fine is $100, and you may need to serve jail time.
 

Workers’ Compensation Insurance.

Small businesses in South Dakota are not required to carry workers’ compensation insurance, but it is a highly recommended coverage to have. Without workers’ comp, an injured worker can sue an employer in civil court. A workers’ comp policy covers medical bills for work-related injuries and illnesses and provides partial lost wages. In exchange, employers cannot be sued for medical costs. 

Small Business Owner’s Insurance.

South Dakota small business owners can choose to bundle their property damage insurance and general liability into one convenient and comprehensive Business Owner’s Policy (BOP). A BOP typically covers losses and damages related to your business property, customer medical expenses for onsite third-party accidents like a slip and fall, and advertising damage claims like libel and slander.

General Liability Insurance.

General Liability Insurance (GL) can be obtained as a separate minimum coverage if your South Dakota small business doesn’t need the property coverage portion of a BOP. If you lease space for your small business, for example, the property contract may require General Liability Insurance. GL helps ease the financial burden of customer injury and typically covers third-party property damage, slander and libel lawsuits, and other risks. 
 

Professional Liability Insurance.

Professional Liability coverage is recommended for South Dakota small businesses that provide expertise as a service, like accounting, architecture, design, and technical services, as it can protect them from related damage claims. Professional Liability (also referred to as errors and omissions or E&O) insurance helps cover work mistakes and errors, incomplete work, missed deadlines, and negligence lawsuits.

Cyber Liability Insurance.

Small businesses in South Dakota are at risk of cyberattacks. Cyber Liability insurance is recommended for small businesses to help manage the results of a cyberattack, with help paying for customer notification and fraud monitoring costs and associated legal fees. Cyber insurance helps small companies recover from data breaches, phishing, and other common cyberattacks.