--- title: "Equipment Breakdown Insurance in South Dakota" description: "South Dakota ties special boiler inspections to boiler-and-machinery insurance and charges an annual operation-certificate fee either way." canonical: "https://spot.insure/coverage/equipment-breakdown/south-dakota" page-type: "coverage-state-guide" updated-at: "2026-09-29" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/equipment-breakdown/south-dakota) # Equipment Breakdown Insurance in South Dakota South Dakota lets a special inspector perform a required boiler inspection incidental to issuing or renewing boiler and machinery insurance, and it limits the insurer's inspection liability except for gross negligence. Owners, users, or insurers of qualified boilers pay an annual operation-certificate fee whether a state inspector or a special inspector does the visit. The current class-by-class interval table did not render on the legislature site, so this guide does not state one.[^1][^2] **Coverage:** [Equipment breakdown](/coverage/equipment-breakdown) · [South Dakota](/coverage/states/south-dakota) ## What Is Equipment Breakdown? Equipment-breakdown coverage can help repair covered machinery or building equipment after a mechanical or electrical failure. It fits businesses that depend on equipment to operate; check whether lost income, spoilage and utility failures are included. [Read the national Equipment breakdown guide](/coverage/equipment-breakdown). ## South Dakota Requirements | Requirement | Details | | --- | --- | | Operation certificate fee | Annual fee if a state inspector or a special inspector inspects a qualified boiler. Paid through the Office of the State Fire Marshal when the state inspects.[^2] | | Inspection fees in one year | No more than one certificate inspection fee and one external inspection fee per boiler in a 12-month period, with stated exceptions.[^2] | ## What to Watch for in South Dakota ### Insurance Inspections Are Incidental to the Policy A boiler inspection required by § 34-29A-7 that a special inspector performs incidental to issuing or renewing boiler and machinery insurance does not, by itself, make the insurer liable for damages from an act or omission during the inspection. The protection does not apply if the insurer's gross negligence created the condition that proximately caused the injury, death, or loss. That liability limit is not a statement of what the policy pays for a breakdown.[^1] ### State and Special Inspectors Both Support a Certificate The fee statute, as amended in 2021, says owners, users, or insurers of qualified boilers pay an annual operation certificate fee if a state inspector or a special inspector inspects the boiler. State inspection fees are paid to the Office of the State Fire Marshal. The session-law PDF shows prior and amended dollar amounts without reliable strikeout marks, so this guide does not quote a fee dollar figure.[^2] ### Shop and Secondhand Inspections Are Billed by the Day Current § 34-29A-37 charges other inspections, including shop inspections, special inspections, and inspections of secondhand or used boilers, by the chief or deputy inspector at not less than $90 for a half day of four hours and $150 for a full day of eight hours, plus expenses. Secondhand means an object that changed ownership and location after primary use. Budget that visit when you relocate a used boiler. It is not an insurance premium.[^3] ### The Interval Table Did Not Render The legislature's chapter 34-29A viewer returned a shell without the class interval text, and archived rule PDFs were not used as current law. Do not assume an annual internal inspection for every object from the fee statute's 12-month fee cap. Ask the State Fire Marshal which certificate and external inspections your boiler class requires before you align a breakdown deductible with an outage.[^2][^4] ## Who Regulates Insurance in South Dakota **South Dakota Division of Insurance.** The South Dakota Division of Insurance regulates insurance companies and producers and publishes tools to verify producer and company licenses. It accepts complaints about insurers, HMOs, producers, adjusters, and other licensed or registered insurance entities.[^5][^6][^7] - [Regulator website](https://dlr.sd.gov/insurance/) - [License lookup](https://dlr.sd.gov/insurance/license_inquiry_service.aspx) - [File a complaint](https://dlr.sd.gov/insurance/doi_complaint.aspx) ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 2.5% of premium; commercial property adds 0.175% fire tax, inland marine 0.075%; no stamping fee South Dakota adds 2.5% surplus-lines tax; its current chart lists an additional fire tax of 0.175% for commercial property and 0.075% for commercial inland marine, none for commercial liability, and no stamping fee. The Division directs surplus-lines brokers to report and remit through SLIP+ within 30 days; ask your broker to confirm which policy-specific disclosures apply.[^8][^9] ## Providers With Documented State Licenses No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. [Check the regulator’s license lookup](https://dlr.sd.gov/insurance/license_inquiry_service.aspx) and confirm availability with a provider when requesting a quote. ## Questions to Ask Before You Buy in South Dakota 1. Will the next inspection be incidental to a boiler-and-machinery policy, or a state inspection billed through the Fire Marshal? 2. Has this boiler already had a certificate inspection fee and an external inspection fee in the current 12 months? 3. If the boiler is secondhand, who pays the daily shop or special inspection rate? 4. What repair and business-income terms apply, separate from the operation certificate? ## Equipment Breakdown in South Dakota: FAQ ### Does South Dakota require boiler and machinery insurance for every boiler? The opened statutes recognize special-inspector visits incidental to issuing or renewing that insurance, and they also recognize state inspectors. They do not say every owner must buy the policy. An annual operation-certificate fee applies in either inspection route.[^1][^2] ### What does South Dakota charge for inspecting a used boiler that changed location? Section 34-29A-37 sets a floor of $90 for a half day and $150 for a full day, plus expenses, for shop, special, and secondhand inspections by the chief or deputy inspector. Secondhand means the object changed ownership and location after primary use.[^3] ## Equipment Breakdown in Other States - [Alabama](/coverage/equipment-breakdown/alabama) - [Alaska](/coverage/equipment-breakdown/alaska) - [Arizona](/coverage/equipment-breakdown/arizona) - [Arkansas](/coverage/equipment-breakdown/arkansas) - [California](/coverage/equipment-breakdown/california) - [Colorado](/coverage/equipment-breakdown/colorado) - [Connecticut](/coverage/equipment-breakdown/connecticut) - [Delaware](/coverage/equipment-breakdown/delaware) - [District of Columbia](/coverage/equipment-breakdown/district-of-columbia) - [Florida](/coverage/equipment-breakdown/florida) - [Georgia](/coverage/equipment-breakdown/georgia) - [Hawaii](/coverage/equipment-breakdown/hawaii) - [Idaho](/coverage/equipment-breakdown/idaho) - [Illinois](/coverage/equipment-breakdown/illinois) - [Indiana](/coverage/equipment-breakdown/indiana) - [Iowa](/coverage/equipment-breakdown/iowa) - [Kansas](/coverage/equipment-breakdown/kansas) - [Kentucky](/coverage/equipment-breakdown/kentucky) - [Louisiana](/coverage/equipment-breakdown/louisiana) - [Maine](/coverage/equipment-breakdown/maine) - [Maryland](/coverage/equipment-breakdown/maryland) - [Massachusetts](/coverage/equipment-breakdown/massachusetts) - [Michigan](/coverage/equipment-breakdown/michigan) - [Minnesota](/coverage/equipment-breakdown/minnesota) - [Mississippi](/coverage/equipment-breakdown/mississippi) - [Missouri](/coverage/equipment-breakdown/missouri) - [Montana](/coverage/equipment-breakdown/montana) - [Nebraska](/coverage/equipment-breakdown/nebraska) - [Nevada](/coverage/equipment-breakdown/nevada) - [New Hampshire](/coverage/equipment-breakdown/new-hampshire) - [New Jersey](/coverage/equipment-breakdown/new-jersey) - [New Mexico](/coverage/equipment-breakdown/new-mexico) - [New York](/coverage/equipment-breakdown/new-york) - [North Carolina](/coverage/equipment-breakdown/north-carolina) - [North Dakota](/coverage/equipment-breakdown/north-dakota) - [Ohio](/coverage/equipment-breakdown/ohio) - [Oklahoma](/coverage/equipment-breakdown/oklahoma) - [Oregon](/coverage/equipment-breakdown/oregon) - [Pennsylvania](/coverage/equipment-breakdown/pennsylvania) - [Rhode Island](/coverage/equipment-breakdown/rhode-island) - [South Carolina](/coverage/equipment-breakdown/south-carolina) - [Tennessee](/coverage/equipment-breakdown/tennessee) - [Texas](/coverage/equipment-breakdown/texas) - [Utah](/coverage/equipment-breakdown/utah) - [Vermont](/coverage/equipment-breakdown/vermont) - [Virginia](/coverage/equipment-breakdown/virginia) - [Washington](/coverage/equipment-breakdown/washington) - [West Virginia](/coverage/equipment-breakdown/west-virginia) - [Wisconsin](/coverage/equipment-breakdown/wisconsin) - [Wyoming](/coverage/equipment-breakdown/wyoming) [Other Coverage in South Dakota](/coverage/states/south-dakota) ## Sources [^1]: [2021 Session Laws Chapter 154 (House Bill 1074)](https://mylrc.sdlegislature.gov/api/Documents/SessionLaw/218420.pdf?Year=2021) — South Dakota Legislative Research Council; SDCL § 34-29A-8.1, signed March 8, 2021. Accessed 2026-09-29. [^2]: [2021 Session Laws Chapter 155 (House Bill 1011)](https://mylrc.sdlegislature.gov/api/Documents/SessionLaw/217235.pdf?Year=2021) — South Dakota Legislative Research Council; SDCL § 34-29A-35.1 annual operation certificate and 12-month fee cap. Accessed 2026-09-29. [^3]: [SDCL 34-29A-37. Daily rates charged for other inspections](https://sdlegislature.gov/api/Statutes/34-29A-37.html) — South Dakota Legislature; Half-day and full-day rates; definition of secondhand. Accessed 2026-09-29. [^4]: [Codified Laws chapter 34-29A](https://sdlegislature.gov/Statutes/34-29A) — South Dakota Legislature; Viewer returned a shell and did not display the interval table on 2026-09-29. Accessed 2026-09-29. [^5]: [south-dakota insurance regulator](https://dlr.sd.gov/insurance/) — State insurance regulator; Division home sets out public consumer, producer, complaint, licensure and company resources.. Accessed 2026-09-28. [^6]: [South Dakota Division of Insurance](https://dlr.sd.gov/insurance/) — State insurance regulator; Public state portal links to verify producer or company licensure; lookup route is part of the official division page.. Accessed 2026-09-28. [^7]: [Filing a Complaint and Your Rights](https://dlr.sd.gov/insurance/doi_complaint.aspx) — State insurance regulator; Complaint eligibility covers licensed/registered insurer, HMO, producer, adjuster, and other insurance entities.. Accessed 2026-09-28. [^8]: [South Dakota Tax Rates for Surplus Lines Clearinghouse Coverage Codes](https://dlr.sd.gov/insurance/surplus_lines/documents/single_state_surplus_lines_policies.pdf) — South Dakota Division of Insurance; PDF revised May 2025, p. 1: 2.5% base tax, coverage-specific fire percentages, stamping fee/assessment none; line tables distinguish liability, property, and inland marine.. Accessed 2026-09-28. [^9]: [Surplus Lines Forms and Information](https://dlr.sd.gov/insurance/surplus_lines.aspx) — South Dakota Division of Insurance; Single-state tax reporting and remittance through SLIP+ within 30 days; current page reviewed.. Accessed 2026-09-28. [^10]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^11]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^12]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^13]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^14]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^15]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^16]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-29. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). 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