South Dakota contractor insurance requirements

Workers' comp in South Dakota

No South Dakota law requires employers to carry workers' comp. The state strongly recommends it, and an uninsured employer can be sued in civil court by an injured worker.

The agency in charge is the South Dakota Department of Labor and Regulation. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

We found no statewide general liability minimum tied to a general contractor license. South Dakota has no statewide general contractor license. Cities and counties can set their own licensing and insurance rules, so check where the project is.

Indemnity and additional insured clauses

South Dakota's anti-indemnity statute (S.D. Codified Laws §§ 56-3-16, 56-3-18) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

The state won't make them carry it, so the project has to

Because workers' comp is optional in South Dakota, your project requirements are the only thing that makes a contractor carry it. Spell out workers' comp and employers liability limits, and check that the COI shows them.

What to check on a contractor COI for a South Dakota project

1. Workers' comp. South Dakota doesn't make most private contractors carry it on private work, so your project requirements decide. If you require it, check that the COI shows workers' comp and employers liability limits. For an out-of-state contractor, confirm South Dakota is listed on the workers' comp policy.
2. General liability. South Dakota doesn't set a statewide floor for a general contractor license, so your project requirements set the bar. Compare each limit on the COI with what the contract asks for.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.