Is workers comp required in South Dakota?
South Dakota generally requires most employers to carry workers compensation, with some exemptions such as certain agricultural and domestic work. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in South Dakota
Coverage in South Dakota is sold by private insurers. Every state also has a market of last resort, so even higher-risk or brand-new businesses can generally find a policy.
Who sets the rules
The South Dakota Department of Labor and Regulation oversees workers comp in South Dakota. In South Dakota, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What South Dakota employers should know
- Agricultural exemptions in South Dakota are narrow, so farm businesses with non-family employees should confirm their status.
- Seasonal tourism around the Black Hills creates payroll swings worth reflecting in estimates.
How premiums are calculated
Your South Dakota premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll. Learn more about how workers comp rates work and preparing for an audit.
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South Dakota workers comp FAQ
Is workers comp required in South Dakota?
South Dakota generally requires most employers to carry workers compensation, with some exemptions such as certain agricultural and domestic work. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in South Dakota?
The South Dakota Department of Labor and Regulation administers the workers compensation system in South Dakota.
Can I buy South Dakota workers comp from a private insurer?
Yes. Private insurers write workers comp in South Dakota, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in South Dakota?
In South Dakota, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. Your South Dakota premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll.