Insurance in South Dakota

South Dakota does not attach a statewide general liability mandate to SD Electrical Commission or SD Plumbing Commission credentials. General contractors and commercial owners typically require CGL with minimum limits and additional-insured endorsements before you can step on site. Most South Dakota trades operators carry $1,000,000 per-occurrence / $2,000,000 aggregate CGL at a minimum, with higher limits for commercial work. Workers' compensation. South Dakota allows competitive workers'-comp markets under SDCL Title 62 (Workers' Compensation). Private workers'-comp insurance, approved self-insurance, or membership in an approved group self-insured fund satisfy the statutory coverage requirement. Coverage is mandatory for most employers under SDCL 62-3. Sole proprietors with no employees are not required to cover themselves but may elect coverage. The South Dakota Department of Labor and Regulation (DLR) administers workers'-comp claims oversight. Source: SD DLR (https://dlr.sd.gov/). Other coverages trades operators typically carry in South Dakota: - Commercial auto for trucks and vans. Personal auto policies carve out business use. South Dakota's minimum financial responsibility limits are low. Commercial buyers expect well above the state minimum. - Hired and non-owned auto for employees driving their own vehicles on company errands. - Inland marine (contractor's equipment) for tools, equipment, and materials in transit or on site. - Pollution liability for refrigerants, solvents, and fuel handling. Material for HVAC, mechanical, and underground trades. - Umbrella for $1M to $2M over the underlying CGL and auto layers, commonly required by commercial GCs. - Builder's risk, on a per-project basis, for new construction and major remodel work. Contractor's Excise Tax registration. South Dakota imposes a 2 percent contractor's excise tax on gross receipts for most construction services under SDCL 10-46A. The tax is not insurance, but it is a mandatory state registration for any contractor operating in South Dakota. Register for an Excise Tax license through the SD Department of Revenue before performing contract work. Shop the market annually. South Dakota trade associations (ABC Dakotas, AGC South Dakota, PHCC South Dakota, IEC Dakotas) run group programs that sometimes price below street rates. Whatever you buy, keep your SD Electrical Commission electrician license and SD Plumbing Commission plumber license in good standing, workers' comp active, and the Contractor's Excise Tax registration current.