Is South Dakota Workers’ Compensation insurance required?
No employers are required to carry workers’ compensation insurance in South Dakota, according to the South Dakota Department of Labor & Regulation. Businesses that voluntarily choose to carry workers’ comp insurance must provide medical and disability benefits to their employees.
Though workers’ comp is not required, the state highly recommends this insurance for businesses with employees. With coverage, employers provide protection for employees who are injured on the job, and also limit the financial risk to their business.
If an employee gets hurt at work, a South Dakota workers’ comp policy could help pay for:
Without workers’ comp insurance, an employer could be sued in civil court by an injured worker.
How does Workers’ Comp work in South Dakota?
A South Dakota workers’ comp policy covers medical care for employees who get injured on the job, including:
- Medical, surgical and hospital services
- Physical rehabilitation services
- Prosthetic devices and body aids
- Travel, lodging and meals when traveling to receive medical care
- Lost wages
- Death benefits
If an injury causes a serious impairment and/or affects the employee’s ability to work, South Dakota’s workers’ compensation income benefit options include:
Temporary partial disability. An employee is able to return to work but can’t work the same number of pre-injury hours.
Temporary total disability. An employee has to miss work for seven consecutive days or more due to their injury.
Permanent partial disability. An employee suffers an impairment of certain body parts, with benefits corresponding to a level of impairment determined by a medical practitioner.
Permanent total disability. An employee suffers a total disability due to their injury and is entitled to receive weekly benefits for life.
Death benefits in South Dakota include compensation for dependents and/or family members when an employee dies as the result of an injury.
Any South Dakota employer who chooses to carry workers’ comp insurance must submit a First Report of Injury form to their insurance carrier within seven days of written notice of an employee injury.
Additionally, employers are required to post information encouraging safety in the workplace.
Learn more about workers’ compensation coverage.