What Workers’ Compensation Insurance Requirements Apply in South Dakota?

South Dakota generally lets employers choose whether to insure workers’ compensation liability, and an uninsured employer may be sued by an injured worker. A statutory exception requires certain listed agricultural machinery operators to secure liability before operating.

What Is Workers’ Compensation Insurance?

Workers’ compensation can pay medical care and part of an employee’s lost wages after a work-related injury or illness. If you have staff, check who is covered in each state; owners, contractors and some workers may be treated differently. Read the national Workers’ compensation guide.

South Dakota Workers’ Compensation Insurance Requirements

Requirement	Details
General employer choice	South Dakota DLR states that no law generally requires an employer to carry workers’ compensation insurance; an uninsured employer may be sued in civil court. Certain named agricultural machinery operations have a separate statutory insurance requirement. ^1,³

What to Watch for With Workers’ Compensation in South Dakota

Choosing No Policy Leaves Civil-Suit Exposure
South Dakota DLR says employers are not generally required to carry workers’ compensation insurance, but an uninsured employer may be sued in civil court by an injured worker. Compare the policy’s benefits and liability protections with the direct risk you retain before declining coverage. ¹
Some Agricultural Machinery Work Has a Specific Duty
SDCL §62-3-16 requires commercial threshing, combining, corn shelling or husking, shredding, silage cutting, and seed-hulling operations to secure liability before operating, with statutory exceptions for certain owner-crop or noncommercial activity. If you hire or operate this equipment, check the precise activity and exception before relying on the general voluntary rule. ³
Worker Exceptions Affect Which Claims Fall Under the Act
South Dakota DLR lists domestic servants, agricultural laborers, workfare participants, certain officials, and work outside the employer’s usual business among limited exceptions; domestic service becomes covered at more than 20 hours weekly for more than six weeks in a 13-week period. Ask how actual duties and hours affect the proposed policy and any direct liability. ^2,³

Providers With South Dakota License Records

These providers publish a national listing for Workers’ compensation; the license records below name the licensed entities and roles. 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.

Corgi
Insurance producer · checked 2026-09-28
Corgi Insurance Services, Inc.
Corgi’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. ¹¹
Corgi lists workers’ compensation insurance.
ERGO NEXT Insurance
Insurance producer · checked 2026-09-28
Next First Insurance Agency, Inc.
ERGO NEXT’s current license table lists Next First Insurance Agency, Inc. in 50 jurisdictions, including Washington, DC; New York is excluded because its table rows name Next Insurance Services and AP Intego, not Next First. The table is company-reported; it does not establish product availability or provide state-regulator verification for each entry. ¹³
ERGO NEXT offers workers’ compensation insurance for small businesses.
Hiscox
Insurer · checked 2026-09-28
Hiscox Insurance Company Inc.
Hiscox’s U.S. company information states that Hiscox Insurance Company Inc. is licensed in all 50 states and the District of Columbia. This is company-reported insurer authority for this entity and does not establish which company issues every Hiscox-branded product. ¹²
Hiscox provides access to workers’ compensation underwritten by Hartford Fire Insurance Company and requires a general liability policy.
TechInsurance
Insurance producer · checked 2026-09-28
Specialty Program Group LLC
TechInsurance’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. ¹⁴
TechInsurance arranges workers’ compensation insurance for small businesses.
Vouch
Insurance producer, Surplus-lines broker · checked 2026-09-28
Vouch Specialty Insurance Services, LLC
Vouch’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. ¹⁵
Vouch lists workers’ compensation among core coverages for technology companies.

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. ^4,^5,⁶

Website: Regulator website
License lookup: Search licensed producers
Complaints: File a complaint

Surplus-Lines Tax and Stamping Office in South Dakota

Reported tax rate. 2.5% of premium; commercial property adds 0.175% fire tax, inland marine 0.075%; no stamping fee ^7,⁸

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.

Questions to Ask Before You Buy Workers’ Compensation in South Dakota

If we decline coverage, how would we fund a civil claim by an injured worker?
Does our farm equipment work fall within SDCL §62-3-16, and which statutory exception, if any, applies?
Which workers are excluded from the Act, including domestic workers whose hours may cross the statutory test?

Workers’ Compensation Insurance in South Dakota: FAQ

Is workers’ compensation insurance mandatory in South Dakota?

Generally, no. South Dakota DLR says no law requires any employer to carry it, but uninsured employers may be sued; certain specified agricultural machinery operators have a separate statutory insurance duty. ^1,³

Does South Dakota require coverage for farm machinery operators?

Yes for commercial threshing, combining, corn shelling or husking, shredding, silage cutting, and seed-hulling operators covered by SDCL §62-3-16. The statute contains limited exceptions, so check the operation’s facts. ³

Sources for Workers’ Compensation Insurance in South Dakota

1
Workers’ Compensation. South Dakota Department of Labor and Regulation, Division of Labor and Management; Coverage: voluntary insurance; uninsured employer civil liability. Accessed 2026-09-28.
2
Workers’ Compensation: Coverage. South Dakota Department of Labor and Regulation, Division of Labor and Management; Coverage and Exceptions: domestic, farm/agricultural, outside usual business, public officials, workfare. Accessed 2026-09-28.
3
South Dakota Codified Laws, Chapter 62-3: Covered Employment and Employer’s Responsibility. South Dakota Legislative Research Council; §§62-3-3, 62-3-5, 62-3-15–17; §62-3-16 mechanized farm operations; current codified text. Accessed 2026-09-28.
4
south-dakota insurance regulator. State insurance regulator; Division home sets out public consumer, producer, complaint, licensure and company resources. Accessed 2026-09-28.
5
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.
6
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.
7
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.
8
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.
9
Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
10
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.
11
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.
12
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.
13
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.
14
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.
15
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.

What Workers’ Compensation Insurance Requirements Apply in South Dakota?

What Is Workers’ Compensation Insurance?

South Dakota Workers’ Compensation Insurance Requirements

What to Watch for With Workers’ Compensation in South Dakota

Choosing No Policy Leaves Civil-Suit Exposure

Some Agricultural Machinery Work Has a Specific Duty

Worker Exceptions Affect Which Claims Fall Under the Act

Providers With South Dakota License Records

Corgi

ERGO NEXT Insurance

Hiscox

TechInsurance

Vouch