South Dakota workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
South Dakota
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
South Dakota
's workers' comp laws?
South Dakota epitomizes the distinctive charm of the American Great Plains. From the cityscape of Sioux Falls to the beauty of the Badlands and Black Hills, the Mount Rushmore State embodies a pioneer spirit rooted in its history and natural splendor.
With a diverse economy spanning agriculture, tourism and manufacturing, South Dakota offers abundant opportunities for businesses to flourish. When it comes to ensuring the safety of your business and its employees, finding the right workers' compensation insurance is crucial.
What is workers' compensation?
Workers' compensation is an insurance program for employers with one or more employees. It’s designed to provide medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers’ compensation, the cost of an injured or ill employee’s medical treatment could become the responsibility of your business.
South Dakota workers’ compensation laws
The South Dakota Department of Labor and Regulation administers the workers’ comp law in South Dakota. The law doesn’t require employers to carry workers’ compensation insurance, but it’s highly recommended.
Workers’ comp coverage can be obtained through a partner like EverPeak Insurance. The Department of Labor and Regulation can approve self-insured requests based on financial status.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
South Dakota
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in South Dakota include:
- Domestic servants
- Farming or agricultural labor
- Real estate agents
- Certain elected officials of the state or any subdivision of government
- Workfare participants
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Benefits provided
South Dakota workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Survivor benefits
South Dakota workers’ compensation rates
The weekly compensation rate in South Dakota is two-thirds of the employee’s average weekly wage, not to exceed a maximum amount set by the law.
Find more information on South Dakota workers’ compensation benefit rates.
How much does workers’ comp cost in
South Dakota
?
How do you file a workers’ compensation claim in
South Dakota
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in South Dakota should report their injury to their employer immediately but no later than three days after the accident.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Employer reports injury
Once notified of the injury, employers should file a report of the accident within seven days to their workers' compensation insurance carrier.
Step 4: Receive benefits
If an employer’s insurance provider accepts the claim, the worker should begin receiving benefits to cover medical expenses and, if the employee misses time from work due to the injury, lost wages.
Step 5: Return to work safely or receive permanent disability benefits
Following their recovery, a worker is expected to resume work safely. In cases where the worker cannot fully recover to the extent that they can perform their job duties, they may be eligible to receive permanent disability payments.
Choosing a healthcare provider
Under South Dakota law, the injured employee can select their medical practitioner. The employee should notify their employer about their choice as soon as possible. If the injured employee wishes to change practitioners, they should first receive approval from their employer. Employees can seek a second opinion at their own expense without employer approval.
Payment of medical bills
Medical services must be paid for within 30 days of the receipt by the employer or the employer’s workers’ compensation insurance carrier. If any services are contested, denied or considered incomplete, the employer or workers' compensation insurance carrier should notify the medical provider within 30 days.
Compensation for missed work
If an employee is out of work:
- Less than seven days: They are not eligible for temporary disability payments.
- More than seven days: They are eligible for benefits retroactive to the first day they stopped work.
Resolving disputes
Employers and employees can use the Department of Labor and Regulation’s mediation services to resolve a workers’ comp dispute. Mediation is an informal, voluntary meeting between parties to help settle workers’ compensation disputes and is offered by the Department of Labor and Regulation at no cost. Either party can request mediation by submitting a mediation request form.
How to get workers' compensation
Insurance requirements for employers
Employers in South Dakota are not required to carry workers’ compensation insurance, but it’s strongly encouraged to protect both the employer and employee in the event of a workplace accident.
Choosing the Right Insurance Provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.