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Last-mile delivery insurance in South Dakota

The Division of Insurance says a personal auto policy generally covers personal use and will exclude coverage to carry persons or property for compensation or a fee. It also says some policies exclude retail or wholesale delivery, including magazines or newspapers. Separately, SDCL 32-40-8 requires $50,000 per person, $100,000 per incident, and $25,000 property damage while a transportation-network driver is logged on and not on a prearranged ride, and SDCL 32-40-9 requires $1 million on a prearranged ride. Those sections transport riders, not packages. 1,2

What Is Last-Mile Delivery?

Last-mile delivery insurance is not one standard policy: vehicle liability, vehicle damage and cargo protection can be separate. If your staff deliver orders in company, rented or personal vehicles, check each vehicle, cargo and worker-injury exposure in the quote. Read the national Last-mile delivery guide.

South Dakota Requirements

RequirementDetails
Logged on, not on a prearranged ride$50,000 / $100,000 / $25,000 2
Prearranged ride$1 million 3

What to Watch for in South Dakota

  • Carrying Property for a Fee Can Void the Personal Policy

    The Division says a personal auto policy will exclude coverage to carry persons or property for compensation or a fee. A paid parcel, food, or grocery delivery is property carried for a fee. The fix the Division names is to ask a producer whether the existing policy covers incidental business use and, where the vehicle is primarily a business vehicle, to look at a commercial auto policy. 1

  • Retail Delivery Is an Example in the Bulletin

    The same page says some personal policies state they will not cover retail or wholesale delivery, and it gives delivery of magazines or newspapers as the example. Do not assume a grocery route is outside that sentence because the example is paper goods. Ask the producer to read the delivery exclusion against the actual load. 1

  • The $1 Million Statute Is a Rider Ride

    SDCL 32-40-7 requires insurance that recognizes the driver transports riders for compensation, and 32-40-1 defines the rider and the prearranged ride. The $1 million limit in 32-40-9 is that ride. It is not the answer to the Division's property-for-a-fee exclusion on a delivery route. 3,4,5

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. 6,7,8

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. 9,10

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 and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in South Dakota

  1. Does the personal policy exclude carrying property for a fee, or retail and wholesale delivery, as the Division describes?
  2. If the driver also takes passenger trips, is the logged-on limit $50,000/$100,000/$25,000 under SDCL 32-40-8?
  3. Is a commercial auto policy the one that applies because the vehicle is used primarily for business?

Last-Mile Delivery in South Dakota: FAQ

Does a South Dakota personal auto policy cover carrying property for a fee? 1

No. The Division of Insurance says that kind of policy generally excludes coverage to carry persons or property for compensation or a fee. 1

What limit does South Dakota require during a prearranged transportation-network ride? 3

$1 million. SDCL 32-40-9 sets that primary liability for death, bodily injury, and property damage. 3

Last-Mile Delivery in Other States

Other Coverage in South Dakota

Sources

  1. Personal Auto Policy vs. Commercial Policy. South Dakota Division of Insurance; Exclusion for carrying persons or property for a fee, and for retail or wholesale delivery. Accessed 2026-09-29.
  2. SDCL 32-40-8. South Dakota Legislature; logged-on, not on a prearranged ride. Accessed 2026-09-29.
  3. SDCL 32-40-9. South Dakota Legislature; engaged in a prearranged ride. Accessed 2026-09-29.
  4. SDCL 32-40-1 Definitions. South Dakota Legislature; rider and prearranged ride. Accessed 2026-09-29.
  5. SDCL 32-40-7. South Dakota Legislature; transport riders for compensation. Accessed 2026-09-29.
  6. south-dakota insurance regulator. State insurance regulator; Division home sets out public consumer, producer, complaint, licensure and company resources. Accessed 2026-09-28.
  7. South Dakota Division of 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.
  8. Filing a Complaint and Your Rights. State insurance regulator; Complaint eligibility covers licensed/registered insurer, HMO, producer, adjuster, and other insurance entities. Accessed 2026-09-28.
  9. South Dakota Tax Rates for Surplus Lines Clearinghouse Coverage Codes. 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.
  10. Surplus Lines Forms and Information. South Dakota Division of Insurance; Single-state tax reporting and remittance through SLIP+ within 30 days; current page reviewed. Accessed 2026-09-28.
  11. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  12. Licenses and Carriers. 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.
  13. Insurance Producer 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.
  14. About Hiscox US 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.
  15. 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.
  16. Insurance Licenses by State. 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.
  17. 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 .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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