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Technology E&O Insurance in South Dakota

SDCL 53-9-3 says a contract that exempts anyone from responsibility for that person’s own fraud, willful injury to the person or property of another, or violation of law, whether willful or negligent, is against public policy. SDCL 20-9-2 is the injury rule: a person can recover only if the plaintiff’s negligence was slight in comparison with the negligence of the defendant, and damages are reduced. The comparison is made without a special interrogatory that discloses a percentage, notwithstanding Woods v. City of Crooks. A technology contract term that tries to excuse the vendor’s own fraud or its own violation of law runs into 53-9-3. A negligence claim for injury runs into the slight-negligence comparison. An E&O policy does not revive a waiver the statute calls against public policy, and it does not change the slight-negligence test. 1,2

What Is Technology Errors And Omissions (E&O)?

Technology errors and omissions coverage can help pay when a customer claims your software, hosting, installation or technology advice caused financial loss. If you provide tech products or services, check each activity; cyber incidents and unrelated professional work need separate review. Read the national Technology errors and omissions (E&O) guide.

What to Watch for in South Dakota

  • A clause that excuses the vendor’s own fraud does not stand

    Section 53-9-3 reaches a contract whose object is to exempt anyone from responsibility for that person’s own fraud. It also reaches willful injury to person or property, and a violation of law whether the violation is willful or negligent. A master services agreement that says the integrator is not responsible for its own deceptive statements about what the system will do is in the fraud branch. A clause that excuses a negligent violation of law is in the statute as well. 1

  • Ordinary commercial risk allocation is not the same sentence

    The section lists fraud, willful injury, and violation of law. It does not say every limitation of consequential damages is void. A negotiated cap on lost profits, with no attempt to excuse fraud or an illegal act, is outside the words of 53-9-3. Read the clause against those three objects before you treat the whole limitation of liability as unenforceable. 1

  • The plaintiff recovers on a negligence claim only when that negligence was slight

    Section 20-9-2, from SL 1998, chapter 125, allows recovery only if the plaintiff’s negligence was slight compared with the defendant’s negligence. Damages are reduced in proportion. The statute says the comparison is made without a special interrogatory disclosing a percentage, notwithstanding Woods v. City of Crooks. This is not a 50 percent bar and it is not a contract-price formula. Use it when the technology incident is pleaded as negligence causing injury. 2

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. 3,4,5

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. 6,7

Providers With Documented State Licenses

These providers publish a national listing for Technology errors and omissions (E&O); the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in South Dakota. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • At-BayAt-Bay Insurance Services LLCInsurance producer, Surplus-lines broker · checked 2026-09-28At-Bay’s license page lists P&C producer and surplus-lines broker license numbers for all 50 states and the District of Columbia. These are company disclosures and do not establish product availability in each jurisdiction. 8
  • CoalitionCoalition Insurance Solutions, Inc.Insurance producer, Surplus-lines broker · checked 2026-09-28Coalition’s license page lists producer and surplus-lines licenses for Coalition Insurance Solutions, Inc. in all 50 states and the District of Columbia. The page separately lists insurers; this record covers the brokerage entity only. 9
  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 10
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 13
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 14

Questions to Ask Before You Buy in South Dakota

  1. Does the contract try to exempt the vendor from its own fraud, willful injury, or violation of law under SDCL 53-9-3?
  2. Is a damages cap aimed only at commercial loss, rather than at one of those three objects?
  3. If the claim is negligence, was the plaintiff’s negligence slight in comparison with the defendant’s, under SDCL 20-9-2?

Technology Errors And Omissions (E&O) in South Dakota: FAQ

Can a South Dakota technology contract waive the vendor’s own fraud? 1

SDCL 53-9-3 says a contract that exempts anyone from responsibility for that person’s own fraud, willful injury to person or property, or violation of law, whether willful or negligent, is against public policy. 1

When can a negligent plaintiff still recover in South Dakota? 2

SDCL 20-9-2 allows recovery only if the plaintiff’s negligence was slight compared with the defendant’s, and it reduces the damages. The comparison is made without a special interrogatory that discloses a percentage. 2

Technology Errors And Omissions (E&O) in Other States

Other Coverage in South Dakota

Sources

  1. SDCL § 53-9-3, Contracts exempting responsibility for fraud or willful injury. South Dakota Legislature; Contracts exempting a person from that person’s own fraud, willful injury, or violation of law are against public policy. Accessed 2026-09-29.
  2. SDCL § 20-9-2, Comparative negligence. South Dakota Legislature; SL 1998, ch. 125: recovery only if the plaintiff’s negligence was slight, with no percentage interrogatory. Accessed 2026-09-29.
  3. south-dakota insurance regulator. State insurance regulator; Division home sets out public consumer, producer, complaint, licensure and company resources. Accessed 2026-09-28.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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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