Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
South Dakota does not generally require employers to buy workers' comp. But the Department of Labor and Regulation explains that if you are uninsured, an injured worker can sue you in civil court. So when you decide whether to insure, think about the cost of an injury and any contracts that require coverage, not just whether the state requires a policy.
Owners, contractors, and exceptions
Confirm which employees and working owners a policy would cover, and whether any opt-outs apply. If you work for another company, your contract may require insurance even though the state does not. If employees work outside South Dakota, check that state's rules. Choosing not to insure in South Dakota does not exempt you anywhere else.
If an employee is injured
The state's first report form tells workers to report an injury within three business days. Tell your insurer quickly and follow the state's seven-day reporting rule, which does not count Sundays or legal holidays. You must report if the injury needs more than minor first aid or keeps the worker off the job for seven or more days. Keep the report and confirm your insurer filed it with the state. The worker's notice alone does not finish it.
Operating without coverage
South Dakota does not fine you just for not carrying workers' comp, because coverage is optional. The trade-off is that an injured worker can sue you in civil court, without the limits of the workers' comp system. Customer contracts, licenses, or work in another state may still require a policy, so check those before you decide not to insure.
How to arrange coverage
Talk with a licensed agent about a policy and what it would cover, and compare the cost with the risk of going without one. If you buy a policy, keep the claim reporting steps and insurer contact handy. Ask how benefits, medical care, and disputed claims work, so workers and supervisors know what to do before an accident happens.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to South Dakota’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,152 a week
- Minimum
- $576 a week
- Applies to
- Starting July 1, 2026
Check a contractor’s coverage
The agency does not offer a public coverage search we could confirm. Ask the contractor for a certificate of insurance, then call the insurer listed on it to confirm the policy is active and covers this state.
Owner exemptions and elections
Owner choices are usually made through your insurance policy. Ask your insurer which owners are included or left out, and get the answer in writing.
Frequently asked questions
Is workers' comp required in South Dakota?
No. South Dakota does not require employers to carry workers' compensation, but an uninsured employer can be sued in civil court by an injured worker.
Do business owners need workers' comp in South Dakota?
If you buy a policy, confirm in writing which owners and employees it covers. Customer contracts or work in other states may still require coverage.
How long does an employee have to report a work injury in South Dakota?
The state's first-report form directs employees to give notice within three business days. Insured employers report qualifying injuries to their insurer within seven days, excluding Sundays and legal holidays.
What happens if a South Dakota business doesn't have workers' comp?
There is no state fine just for being uninsured. The risk is a personal-injury lawsuit from an injured worker outside the limits of the workers' compensation system.
How do I get workers' comp insurance in South Dakota?
If you choose to insure, buy from a licensed insurer and compare the premium with the cost of potential injury lawsuits.
How much does workers' comp cost in South Dakota?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in South Dakota, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
South Dakota DLR: program and uninsured-employer exposureSouth Dakota DLR: first-report formSouth Dakota statutes: Title 62This summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.