South Dakota Workers' Compensation Cost Calculator
Key facts: workers' comp in South Dakota
- Who must be covered
- Optional for most private employersOfficial agency: DLR
- Average rate
- $1.13 per $100 of payrollRank #22 of 51 (#1 = most expensive), above the $1.09 national median
- Rating organization
- NCCINational Council on Compensation Insurance · Private insurers
- Verified from official records
- October 3, 2026Rates: Oregon DCBS study, June 2025
South Dakota's Workers' Compensation Law covers all employers with only limited exceptions, but no state law requires employers to carry the insurance. The Department of Labor and Regulation highly recommends it, since an uninsured employer may be sued in civil court by an injured worker. Coverage is written in a voluntary market, with an assigned risk market as a backstop.
Rates in effect July 1, 2023 · Oregon Department of Consumer and Business Services, 2024 study (June 2025) · Nothing you enter leaves your browser
2024 study rate for all industries in South Dakota. Edit it if your policy shows a different rate.
For the class you're pricing. Insurers rate each class code's payroll separately.
Printed on your experience rating worksheet or renewal. New or small employers that don't qualify for experience rating are rated at 1.00.
Estimated premium
$11,300
per year at an EMR of 1.00
At an average mod
$11,300
per year at an EMR of 1.00
Your EMR's impact
$0
no adjustment
Effective cost: $1.13 per $100 of payroll.
At an EMR of 1.00, your claims history neither raises nor lowers this premium.
Every claim from now on counts toward your next three renewals. IncidentLog makes the first step — a complete, same-day incident report — take about 90 seconds from a job-site QR code.
Create a free accountEstimate before schedule credits or debits, premium discounts, expense constants, state assessments and minimum premiums — your insurer's quote will differ.
Who must carry workers' comp in South Dakota?
Coverage optional
Optional for most private employers
No South Dakota law requires an employer to carry it, although the Workers' Compensation Law covers all employers with only limited exceptions.
The Department of Labor and Regulation highly recommends coverage anyway: an uninsured employer may be sued in civil court by an injured worker.
Official agency
South Dakota Department of Labor and Regulation, Division of Labor and Management (DLR)
Market: Private insurers
South Dakota workers' comp rates by business type
Rate per $100 of payroll for common class codes in South Dakota, against the median of the 51 jurisdictions in the study.
| Business type (NCCI code) | South Dakota | U.S. median | Difference |
|---|---|---|---|
| Office and clerical staff (8810) | $0.16 | $0.11 | +45% |
| Retail store (8017) | $1.17 | $1.20 | −3% |
| Restaurant (full service) (9082) | $1.09 | $1.09 | 0% |
| Restaurant (fast food) (9083) | $0.99 | $1.09 | −9% |
| Hotel (all other employees) (9052) | $1.71 | $1.79 | −4% |
| Assisted living / retirement center (care staff) (8824) | $2.19 | $2.03 | +8% |
| Hospital (professional staff) (8833) | $0.69 | $0.82 | −16% |
| Electrical contractor (5190) | $2.51 | $2.37 | +6% |
| Plumbing contractor (5183) | $3.15 | $2.70 | +17% |
| Residential carpentry (up to 3 stories) (5645) | $9.15 | $8.71 | +5% |
| Roofing (5551) | $11.52 | $9.64 | +20% |
| Trucking (7219) | $6.35 | $5.72 | +11% |
South Dakota uses NCCI class codes. Your insurer applies the rate for your own classes, then your EMR.
What a bad EMR costs in South Dakota
Take $500,000 of payroll at South Dakota's $1.13 index rate: $5,650 a year at an average mod of 1.00.
- EMR 0.85
- $4,802/yr
- EMR 1.25
- $7,062/yr
- Difference
- +$2,260/yr
A claim year usually stays in the mod for three renewals, so the gap adds up to about $6,780. The mod is built from claims, and the cheapest claim is the injury caught early.
IncidentLog lets crews report an injury or near miss from a job-site QR code in about 90 seconds, so you hear about it the same shift and see patterns on your OSHA 300 log before they become claims.
Create a free accountSouth Dakota workers' comp FAQ
Is workers' comp insurance mandatory in South Dakota?
It's optional. No South Dakota law requires an employer to carry it, although the Workers' Compensation Law covers all employers with only limited exceptions. The Department of Labor and Regulation highly recommends coverage anyway: an uninsured employer may be sued in civil court by an injured worker. Source: South Dakota Department of Labor and Regulation, Division of Labor and Management.
How are workers' comp rates set in South Dakota?
Employers buy coverage from private insurance companies. The Oregon DCBS study lists NCCI (the National Council on Compensation Insurance) as South Dakota's rating organization. Your own premium then depends on your class codes, your payroll and your experience modification rate (EMR).
What is the average workers' comp rate in South Dakota?
The Oregon Department of Consumer and Business Services's 2024 study puts South Dakota's all-industry index rate at $1.13 per $100 of payroll for rates in effect on July 1, 2023, 103% of the study's national median of $1.09. That ranks South Dakota #22 of 51 jurisdictions, where #1 is the most expensive (#25 in the 2022 study). Your own rate depends on your class codes.
Sources
Official texts behind this page (4 quotes)
“There is no law in South Dakota requiring any employer to carry workers’ compensation insurance. However, it is highly recommended. An uninsured employer may be sued in civil court by an injured worker.”
Workers' compensation — South Dakota Department of Labor and Regulation (opens in a new tab) · checked October 3, 2026
“The South Dakota Worker's Compensation Law covers all employers with only limited exceptions.”
Coverage — South Dakota Department of Labor and Regulation (opens in a new tab) · checked October 3, 2026
“Effective July 1, 2023, through June 30, 2024, an overall average decrease of 6.7% was approved for the advisory loss costs in the voluntary market.”
2023 annual report, South Dakota Workers' Compensation Advisory Council — Department of Labor and Regulation (opens in a new tab) · checked October 3, 2026
“The Division of Labor and Management may provide information, answer questions and assist persons on a limited basis.”
Employer rights and responsibilities — South Dakota Department of Labor and Regulation (opens in a new tab) · checked October 3, 2026
An estimate for planning, not a quote, legal or insurance advice. IncidentLog is not an insurer or broker. Median rate across all industries: $1.09 per $100.