Get the right commercial insurance for your Sioux Falls business
Which insurance policies are recommended for Sioux Falls businesses?
General liability insurance
General liability pays for legal costs from customer accidents, along with defamation and copyright infringement claims. Commercial leases in Sioux Falls often require this coverage.
- Customer accidents at your business
- Damage to a customer's property
- Slander and other advertising injuries
Professional liability insurance
A professional liability policy covers legal costs related to claims of negligence, such as advice that caused a client to lose money. It's sometimes called errors and omissions insurance (E&O).
- Mistakes that cause financial loss
- Accusations of professional negligence
- Missed deadlines
Cyber liability insurance
Cyber insurance helps small businesses in Sioux Falls recover after a data breach or a cyberattack. Every business that handles customer information should have this coverage.
- Data breach notification costs
- Fraud monitoring services
- PR campaigns after a breach
Business owner’s policy
A BOP is an affordable way to buy general liability coverage and commercial property insurance together. It's recommended for low-risk small businesses in Sioux Falls.
- Customer slip-and-fall injuries
- Damaged business property
- Theft and vandalism
Workers’ compensation insurance
Workers' comp is not required for Sioux Falls businesses with employees, but is highly recommended. It also covers work-related injuries for sole proprietors, which health insurance may deny.
- Medical bills from job-related injuries
- Disability benefits
- Legal fees from workplace injuries
Commercial auto insurance
All vehicles owned by Sioux Falls businesses must be covered by commercial auto insurance. This policy primarily covers injuries and property damage caused by your vehicle.
- Injuries from an auto accident
- Damage caused by your vehicle
- Lawsuits from an auto accident
Errors and omissions insurance
E&O insurance protects consultants and professional services against legal defense costs from dissatisfied clients. It's also called professional liability insurance.
- Errors and oversights
- Breach of contract
- Professional negligence
Commercial property insurance
This policy covers physical damage to a Sioux Falls business's building and its contents, including any computers and equipment. You can bundle it with general liability in a BOP.
- Burglaries
- Fires
- Storm damage
Commercial umbrella insurance
An umbrella policy provides coverage once the limit is reached on your underlying general liability insurance, commercial auto insurance, or employer's liability insurance.
- Customer lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
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Which business insurance policies are required in Sioux Falls, SD?
Workers' compensation insurance
South Dakota state law does not require workers' compensation for all small businesses with employees, but does highly recommends it. If a business is not covered by workers' comp and an employee suffers an injury, the lawsuit would likely be extremely expensive.
Workers' compensation helps pay for medical expenses related to work-related injuries.
Most workers' comp policies also include employer's liability coverage, which protects the business from injury-related lawsuits.
Single-person businesses, such as sole proprietors and independent contractors, should also carry workers' comp, though they are also not required by state law. This policy can help with medical bills related to work injuries, or may be a requirement for certain contracts.
Commercial auto insurance
All South Dakota small businesses with company-owned vehicles are required to carry commercial auto insurance.
This insurance protects your business if you or your employees are involved in an accident with company vehicles while performing work-related activities and errands.
South Dakota insurance minimum requirements include:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability
Certain businesses, such as trucking businesses or those that use utility trailers or cargo trailers, may require higher limits.
In South Dakota, personal injury protection (PIP) is not required as an endorsement to your coverage, but it helps provide medical payments coverage if there's an accident, regardless of who is the at-fault driver.
Businesses that use personal, rented, or leased vehicles will need another policy called a hired and non-owned (HNOA) policy.
How much does business insurance in Sioux Falls cost?
Small businesses in Sioux Falls don't have to pay a lot for commercial insurance. Here are a few average costs for small business owners, based on policy data from Insureon customers:
General liability: $45 per month
Workers' comp: $54 per month
Professional liability/E&O: $88 per month
The cost of business liability insurance depends on factors such as:
- Type of business
- Business operations
- Number of employees
- Policy limits and deductibles
- Claims history
Top professions we insure
FAQs about Sioux Falls business insurance
How do I get a certificate of insurance for my business?
With Insureon, you can get same-day insurance in three easy steps:
- Fill out our easy online application to get quotes from top-rated insurance carriers.
- Choose the insurance option that suits your coverage needs and pay for it online.
- Download a certificate of insurance (COI) by logging into your account.
Our licensed insurance agents will help you get coverage for your Sioux Falls company that matches your specific business needs and your budget.
Most businesses can get their certificate of insurance within a few hours. With this certificate, you can demonstrate proof of insurance for contracts, bids, and other agreements.
Can my business be held liable for a data security breach?
Yes – that's why cyber insurance is so crucial. Small businesses are a common target of cyberattacks since they often have fewer security measures in place.
Small businesses are a common target of cyberattacks and ransomware attacks since they often have fewer security measures in place.
South Dakota data breach laws require Sioux Falls businesses to notify any residents within 60 days if they're exposed in a data breach. The Attorney General must also be informed if more than 250 people are impacted.
Your business could also end up paying for a data breach investigation, a PR campaign, and other costs related to a breach or cyberattack.
Cyber insurance covers these costs and provides resources so you can get back to business fast.
Does my industry affect Sioux Falls insurance requirements?
Sioux Falls requires its small businesses to register with the Secretary of State, file the appropriate documentation, and pay a $150 fee to incorporate. There may be special requirements for business insurance and bonds, depending on the type of work you do.
Additionally, certain industries, such as daycares, tattoo shops, and transportation businesses, are required to carry a license.
Here are a few examples of businesses with other obligations:
- Contractors are not required to carry contractor general liability insurance to operate in Sioux Falls, but it is highly recommended. They might need a surety bond to sign a contract or bid on a project.
- Real estate agents and brokers are required to carry $100,000 in errors and omissions insurance with a $500,000 aggregate limit.
- Notaries public in South Dakota are not required to carry insurance or surety bonds, but it's highly recommended.
- Cannabis dispensaries aren't required to carry insurance, but may want to consider additional policies to address the increased risk of the cannabis industry.
- Physicians aren't required by law to carry malpractice insurance in South Dakota, but some healthcare facilities require it.
When running a business in Sioux Falls, you need to be aware of laws and regulations for South Dakota, the city of Sioux Falls, and Minnehaha County.
How can I get help starting a small business in Sioux Falls, SD?
The City of Sioux Falls provides ample support for new and growing small businesses.
Here's a list of local organizations available to provide guidance and resources:
- The City of Sioux Falls offers zoning support, regulation guides, and assistance with applying for licenses and permits.
- SCORE South Dakota works with local Sioux Falls small business owners to provide mentorship and education.
- Greater Sioux Falls Chamber of Commerce provides education, networking, and advocacy opportunities for Sioux Falls entrepreneurs.
- Startup Sioux Falls offers events, programs, and coworking space for small businesses.
- The U.S. Small Business Administration South Dakota District assists local businesses with funding assistance, contracting support, and disaster recovery services.
Keep in mind that many lenders will require you to first obtain business insurance coverage before they will approve a loan.
How can I save money on Sioux Falls business insurance?
Small business owners can save money on insurance by comparing quotes from different insurance companies.
With Insureon, you can get free South Dakota business insurance quotes from top-rated providers by filling out one easy application.
There are a few other ways to save, such as:
- Bundle policies for a discount. The most popular option is a business owner's policy.
- Choose less expensive policy options, such as lower limits or a higher deductible.
- Focus on minimizing workplace exposures and risk management. Fewer accidents mean fewer claims, which helps keep your premium low.
Learn more about how to find cheap business insurance. You can also speak to one of Insureon's agents to discuss your insurance coverage needs.