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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.
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.
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.
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in South Dakota include:
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.
South Dakota workers’ comp insurance provides three types of benefits for work injuries:
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.
In the event of a work-related injury or illness:
Employees in South Dakota should report their injury to their employer immediately but no later than three days after the accident.
The employee should immediately seek medical attention.
Once notified of the injury, employers should file a report of the accident within seven days to their workers' compensation insurance carrier.
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.
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.
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.
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.
If an employee is out of work:
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.
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.
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.
If an employer fails to provide workers’ compensation coverage, an injured employee or the dependents of a deceased employee may seek to recover damages from the employer. They can also elect to proceed against the employer in circuit court under the provisions of the workers’ compensation law as if the employer had elected workers’ comp coverage. The employee or dependants may receive benefits to cover all medical expenses and twice the amount of disability or death compensation allowed under the law.
In most cases, if an employer in South Dakota has workers’ compensation coverage, their employees are barred from suing them for work-related injuries or illnesses. However, the injured worker may sue an uninsured employer in civil court.
Generally, independent contractors aren’t covered by workers' compensation insurance in South Dakota. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.