Best Small Business Insurance in South Dakota

Unlike most other states, South Dakota does not currently require employers to have workers’ compensation insurance. However, businesses that own and operate motor vehicles must have automotive liability insurance on those vehicles to cover bodily injury and property damage.

Regardless of the state’s requirements for insurance, it’s important that you secure business insurance that fits your business’s needs.

In this review, we’ll explore the best small business insurance in South Dakota and share what makes them the right choice.

Recommended: Next Insurance offers dedicated small business insurance to South Dakota small businesses.


Next Insurance

four point seventy five out of five stars



  • Work directly with an insurance provider
  • Specialized in small business insurance coverage
  • Get a quote in under five minutes


Four point five out of five stars



  • Get connected to the best provider for your business
  • Get a quote on the phone between 8 a.m.–8 p.m. (Monday–Friday)
  • Coverage for a large variety of small businesses

The Hartford

four out of five stars


  • Direct insurance provider, not a marketplace
  • Offers niche and specialized insurance policies
  • Get an online quote within minutes


four point twenty five out of five stars


  • Insures micro-businesses and startups
  • Coverage for 180+ professional services
  • Offers short-term insurance policies


three point seventy five out of five stars


  • Optimum Insurance provider for online businesses
  • Extensive cyber risk solutions
  • 24-hour claims assistance hotline

We narrowed our search down to our top 5 insurance carriers in South Dakota and then closely analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited to.

We also identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.

Our Best South Dakota Business Insurance Providers for 2023:

  1. Next Insurance: Best online business insurance with fast and simple sign-up.
  2. Tivly: Best small business insurance marketplace.
  3. The Hartford: Offers specialized coverage and custom packages.
  4. Hiscox: Good for micro businesses.
  5. CNA: Great for tech companies.

1. Next Insurance: Best Insurance for Small Business

Next Insurance has streamlined the process of getting business insurance coverage completely online and in just a few minutes. Named one of the “Top 50 Disruptors of 2022” by CNBC, Next Insurance uses AI and machine learning to provide the best small business liability insurance options catered to unique business needs.

We consider Next to be the best business insurance company for business owners looking to get fast, affordable, quality coverage without walking into an agency or sifting through aggressive sales pitches. Next Insurance not only offers the most common types of small business insurance but also offers specific insurance products by industry in each state, instant digital certificates of insurance (COI) downloads, and more to make the process easier than ever. Using their user-friendly mobile app, you can easily pay premiums, access policy documents, and even file liability claims on the go with rapid response times. 

Due to their focus on small businesses exclusively, we found their rates to be slightly lower on average than larger insurance providers.

Next Insurance Featured Coverages

  • General Liability Insurance
  • Business Owner’s Policies (BOPs)
  • Commercial Auto Insurance
  • Commercial Property Insurance
  • Professional Liability Coverage (Errors and Omissions Insurance)
  • Hired & Non-Owned Auto Insurance
  • Liquor Liability Insurance
  • Tools & Equipment Insurance
  • Workers’ Compensation Insurance


  • Same-day insurance coverage
  • iOS/Android app for easy access to your COI, to file claims, and to change policy type
  • Get a quote and purchase a policy in less than 10 minutes
  • Easy-to-use scheduler so your insurance can start on a precise date
  • Competitive premiums designed for small businesses
  • Customizable policies
  • Convenient online chat support


  • No brick-and-mortar locations/branches for in-person transactions
  • Some specialized types of insurance coverage, like key person insurance, are not available

Find the Right Coverage for Your Business

Next Insurance is a fully online provider dedicated to low-cost, high-protection coverage for small businesses. Get a quote instantly.


2. Tivly: Best Business Insurance Marketplace

If you’re looking for a marketplace with the best quotes for business insurance, Tivly takes the gold. Tivly has gathered a wide range of small business insurance companies in one place to help you narrow down the search for a policy that meets your business's unique needs. Small business owners that may be considered high risk can find what they are looking for with Tivly.

It's important to note that Tivly is an insurance marketplace instead of an individual provider. The goal of this company is to make your search more simple by showing you the top business insurance policies for your situation and streamlining the signup process. By submitting one online form, you'll receive multiple quotes for commercial insurance products from several competitors, most of whom are on this list. You'll also get a quick rundown of each policy so that you know exactly what you're signing up for.

Tivly Featured Coverages

  • General Liability Insurance
  • Lost Income Insurance (Business Interruption Insurance)
  • Business Hazard Insurance
  • Commercial Property Insurance
  • Business Owner’s Policy
  • Commercial Auto Insurance
  • Workers’ Compensation Insurance
  • Commercial Umbrella Insurance
  • Professional Liability Insurance


  • Great customer service
  • Live and rapid phone support from 8:00 a.m.–8:00 p.m. Monday to Saturday
  • Easy-to-navigate website
  • Offers a lot of information about their different insurance options
  • Works with numerous partners to provide coverage for various types of businesses
  • Great pricing options


  • Policies are issued by other insurance providers, not Tivly.

Your Business Needs Insurance

Find out which policies your business needs and how much it will cost by getting a free quote.

CALL: 833-536-1478

3. The Hartford: Good for Specialized Insurance

The Hartford is a great insurance solution for businesses that need specialized insurance coverage. Though the insurance may not cover every type, as services like Tivly do, The Hartford offers customized insurance packages with only the coverage you need, which can save you hundreds long-term. The Hartford has served millions of small businesses for over 200 years while maintaining a great reputation for delivering some of the best specialized commercial insurance coverages and rates. 

The Hartford Featured Coverages

  • Business Owner’s Policy
  • Commercial Auto Insurance
  • General Liability Insurance
  • Commercial Property Insurance
  • Lost Business Income Insurance
  • Business Interruption Insurance
  • Professional Liability Insurance
  • Workers’ Compensation Insurance
  • Cyber Insurance
  • Commercial Umbrella Insurance
  • Employment Practices Liability Insurance


  • Long history with an A+ financial strength rating through A.M. Best
  • Many small business insurance types
  • Named "World’s Most Ethical Company" by Ethisphere Institute
  • BOP insurance combines general liability and business property insurance together
  • Easy online quotes


  • Not a good option if you prefer an industry-specific insurer
  • Poor J.D. Power's "Small Commercial Insurance Study" reviews
  • Complaints through the National Association of Insurance Commissioners.

4. Hiscox: Great for Micro-Businesses

Hiscox is the best small business insurer for micro-businesses since they have helped thousands of small and micro-businesses get insured. Hiscox has a dedicated team of small business professionals who focus only on helping small businesses get the right types of coverage at the best prices. 

Hiscox Featured Coverages

  • General Liability Coverage
  • Professional Liability Coverage
  • Business Owner’s Policy
  • Short-Term Insurance Policies
  • Cyber Insurance
  • Workers' Compensation Insurance
  • Coverage for 180+ professional services


  • User-friendly online quote generator
  • Insures businesses only
  • Serves businesses of all sizes
  • High ratings by major rating firms
  • Educational website and podcast
  • Over 10,000 positive customer reviews


  • Most customer reviews are found on the company’s website.

5. CNA: Good for Tech Companies

CNA offers the best insurance for online businesses, offering cyber risk insurance solutions. If your company deals in personal or financial information or may be at risk of data breaches or online attacks, CNA offers comprehensive cyber liability policies at the best prices. We like CNA because they offer three cyber risk insurance options, as well as other niche insurance products not found with other providers. 

CNA Featured Coverages

  • Cyber Risk Policies
  • Commercial Auto Insurance
  • General Liability Policies
  • Equipment Breakdown Insurance
  • Inland Marine Policies
  • Professional Liability and Management Insurance
  • Ocean Marine Insurance
  • Business Property Coverage
  • Surety Insurance
  • Umbrella and Excess Casualty Insurance
  • Workers’ Compensation Coverage


  • Specializes in business insurance
  • Covers small-, mid-, and large-sized businesses
  • Covers over 180 niche businesses
  • Eighth largest business insurance provider in the US
  • High ratings from all major insurance rating agencies
  • 24-hour claims assistance


  • The online quote generator doesn’t always work
  • A small number of customer reviews

Small Business Insurance Review Methodology

Choosing the best business insurance comes down to five things:

  1. The type of business you have
  2. The type of coverage you need
  3. Which provider offers the best value
  4. Easy-to-navigate simple claims process
  5. Great customer service

First, we narrowed it down to the five best small business insurance providers, most of whom offer online quotes so that you can get coverage and a certificate of insurance for your business today. 

Then, we analyzed coverage offered, policy details, pricing, and other aspects to determine which type of business each provider would be most suited for small business owners. 

Finally, we've identified competitive selling points like excellent customer service and niche industry offerings that make each business insurance company unique.

South Dakota Business Insurance Requirements and Resources

South Dakota Insurance Requirements

Commercial Auto Insurance

South Dakota law requires operators and owners of motor vehicles to demonstrate “financial responsibility” adequate enough to cover certain specified liability claims. The easiest way to demonstrate financial responsibility is by getting auto insurance. But you may also deposit money—a large sum of $50,000 or more may be required—with the state treasurer or post a surety bond. 

The law prescribes the minimum coverage a policy must have: 

  • Bodily injury to or death of one person in any one accident: $25,000
  • Bodily injury to or death of two or more persons in any one accident: $50,000
  • Damage or destruction of property of others in any one accident: $25,000 

32-35-2: Proof of financial responsibility for the future defined

The term, proof of financial responsibility for the future… means proof of ability to respond in damages for liability, on account of accidents occurring… arising out of the ownership, maintenance, or use of a vehicle… in the amount of twenty-five thousand dollars because of bodily injury to or death of one person in any one accident, and, subject to the limit for one person, in the amount of fifty thousand dollars because of bodily injury to or death of two or more persons in any one accident, and in the amount of twenty-five thousand dollars because of injury to or destruction of property of others in any one accident.

32-35-119: Written evidence of insurance--Electronic copy as written evidence

With respect to persons asserting financial responsibility by means of a certificate of insurance, written evidence… is a copy of the insurance policy.

Together, these two provisions mean that a business that insures its vehicle(s) under an automotive liability policy with 25-50-25 or more coverage will meet its legal obligations.

Workers’ Compensation Insurance

Unlike most other state laws, South Dakota workers’ compensation law does not compel employers to have workers’ compensation insurance. However, the law does make it clear that employers who do not have such insurance may be sued by employees injured on the job. 

Workers’ compensation laws typically prohibit employees from taking legal action in the civil courts against employers for workplace injury, if the employer has workers’ compensation insurance. 

South Dakota’s workers’ comp law provides that employers are strictly responsible for compensating workers who are injured or die due to a workplace accident. 

62-3-1: Measure of responsibility assumed by employer

The compensation provided by this [law] is the measure of responsibility which the employer has assumed for injuries to or death of any employee.

The employer may opt to take out workers’ compensation insurance to ensure funds are available should such a risk materialize.

62-5-2: Obtaining workers' compensation insurance

An employer may secure the payment of compensation to any employee by insuring and keeping insured the payment of the compensation with any stock corporation writing workers' compensation insurance.

An employer without workers’ comp cannot rely on the civil liability protection provided by the law. 

62-5-7: Failure to secure payment as election not to operate under [this law]

Any employer … who has failed to comply with the provisions of [§62-5-2] shall be deemed to have elected not to operate under the provisions of this [law].

This leaves an employer without workers’ comp open to being sued, and the risk of having to pay damages of a large and uncertain amount. 

62-3-11: Election to proceed against employer—Options

Any employee, who is employed by an employer who is deemed not to operate under this [law] in accordance with §62-5-7, or the dependents of such deceased employee, may elect to proceed against the employer in any action at law to recover damages for personal injury or death; or may elect to proceed against the employer in circuit court.

Data Breach Insurance

South Dakota’s data breach notification law only appeared on the statute book in 2018, making the state one of the last to pass such a law. The legislation is modeled after the California law, which most states have followed. It requires a business to notify any resident whose personal information has been or is reasonably suspected to have been acquired by an unauthorized person. Here is the provision in the South Dakota Codified Laws:

Notice of breach of system security

“Following the discovery by or notification to an information holder of a breach of system security an information holder shall disclose… the breach of system security to any resident of this state whose personal or protected information was, or is reasonably believed to have been, acquired by an unauthorized person…”
(SD Codified L § 22-40-20 (2021))

Information Holder

 ““"Information holder," any person or business that conducts business in this state, and that owns or licenses computerized personal or protected information of residents of this state…”
SD Codified L § 22-40-19(3) (2021)

The duty to inform a resident that their personal information has been disclosed without authorization makes a business that has suffered a data breach more likely to face allegations, and perhaps, claims of negligence. Therefore, South Dakota businesses should consider carrying data breach insurance to cover the risk of such a happening.   

Types of South Dakota Business Insurance

General Liability Insurance

The vast majority of South Dakota companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries. 

General liability insurance is one of the most important types of business insurance your company can purchase.

Business Owner’s Policy

A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.

Commercial Auto Insurance

You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.

Workers’ Compensation Insurance

South Dakota does not require businesses with employees to carry workers’ compensation insurance. Nevertheless, it’s a good idea to subscribe to such insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.

Employee Health/Life/Disability Insurance

Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate South Dakota insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.

Professional Liability Insurance

Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes. 

Professional liability insurance includes errors and omissions (E&O) insurance.

Data Breach Insurance

If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases. 

Cyber Liability Insurance

Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.

Commercial Crime Insurance

Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.

Fiduciary Liability Insurance

Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly. 

Third parties like out-of-company consultants and benefit plan administrators are usually not protected.

Directors and Officers Insurance

Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.

Executive Risk Coverage

Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.


Do I need business insurance in South Dakota?

Yes. In South Dakota, you need certain types of business insurance, such as commercial auto insurance, according to law. However, there are non-required types of insurance that your business should still consider.

Business insurance policies can guard against damage to your commercial property, which includes real property that you own or rent, as well as equipment used in the business. And business interruption insurance can make up for lost income if a risk you’ve insured against (fire, for example) materializes. One popular type of insurance is a business owner’s policy which rolls three types of insurance — general liability, commercial property, and business income — into one.

How much does business insurance cost in South Dakota?

Business insurance costs depend on many factors, including the range and type of activities your business undertakes, its location, and its size. A business may engage in activities likely to cause bodily injury either to employees or members of the public, its activities may pose greater risks to adjacent property, or it may manufacture a product that is widely used. Such situations make a business more susceptible to adverse events and make business insurance even more indispensable.  

Why do I need small business insurance?

Some professions or business contracts require that you have business insurance. If this doesn’t apply to you, insurance is still a critical component of your business portfolio. Your policy is there to protect your company and its assets from unexpected lawsuits and claims.

What kind of business insurance do I need?

The type of business insurance you need depends upon the products or services you offer and how your business is structured. Every business should have a general liability policy. If you have business tools, equipment, or vehicles, you’ll want to consider covering those assets as well.

Do I need insurance for my LLC in South Dakota?

In short, yes. While incorporating as an LLC in South Dakota protects your personal assets, your business assets are still at risk in the event of a claim or lawsuit.

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