Insurance for Small Business Owners in South Dakota

Do You Need Small Business Insurance in South Dakota?

South Dakota is one of the least stressed out states in the nation, and it comes in as the third best state for natural environments. This all adds up to a great sense of well-being! South Dakota itself proclaims it is a great place to do business. Small business industries important to South Dakota include retail, construction, real estate, pet services, healthcare, and transportation.

  • There are over 89,900 small businesses in South Dakota
  • 99% of businesses in South Dakota are considered small businesses
  • Small businesses employ over 210,300 people in South Dakota 

South Dakota small business employment has exceeded the national growth rate since 1994. With a stable tax climate, small businesses are positioned to do well in the state. Protect your South Dakota small business with the right business insurance. Small business owners need to know that South Dakota may require certain types of insurance related to specific professions—and some insurance coverages are required for all businesses. Find out more below!

Required Business Insurance Coverage in South Dakota

South Dakota requires the following insurance coverage for small businesses:
  1. 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.

Recommended Business Insurance Coverage in South Dakota

The following insurance coverage is recommended for South Dakota small businesses:
  1. 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. 

  2. 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.

  3. 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. 

  4. 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.

  5. 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. 

Our Small Business Insurance Company Is Here to Help

B2Z understands that insurance can be confusing, so we set out to make it understandable and easy to purchase.
  1. Q
    Does B2Z offer small business coverage in South Dakota?

    Yes. We currently offer the following types of insurance policies to small business owners in South Dakota:

  2. Q
    How do I get a quote for my small business insurance in South Dakota?

    It’s simple! Click on the Get Your Quote button and answer a few questions.