South Dakota, otherwise known as the “Mount Rushmore State” and “Coyote State” is known for its prairies, grasslands and farmland, which cover nearly 90 percent of the state’s land. Through its agriculture, tourism, and manufacturing industries to name a few, South Dakota is ranked third in business friendliness fifth in quality of life, and seventh in the cost of business, , and according to a recent CNBC’s Top States for Business report. With all these impressive rankings, its no wonder that a small business in South Dakota prospers. Tourism is also prevalent in South Dakota, as the state generates more than $1 billion each year from visitors to that fine state. Attractions such as the Badlands, the World’s Only Corn Palace, the city of Deadwood, Mt. Rushmore, and the Crazy Horse memorial bring many tourists to South Dakota. You don’t have to look far to learn about business insurance in South Dakota. Just peruse the below information for a description of the most important small business insurance coverages.
Standard Business Insurance Coverages in South Dakota
An insurance policy held by an enterprise, also known as a BOP, is an all-inclusive small business insurance bundle that includes multiple liability coverages in a single bundle. A BOP integrates two primary coverages in a single policy: property insurance and general liability. Business owners insurance in South Dakota transfers risk away from the business owner to your insurance company by providing protection for a variety of different areas of liability, including equipment, dwellings, and legal liabilities. Common insurance claims that business owners insurance coverage protects you from include: personal injury, income loss, professional liability claims, valuable paperwork, equipment breakdown, fire, legal liability claims, employee fraud, money and securities, and property claims. The South Dakota-based business or organization might have additional components added to the original BOP coverage depending on the prospective risks of each individual business.
General liability insurance in South Dakota is carefully developed to protect small business owners from financial burden that can arise from negligent acts, omissions, or both, caused by the organization or their workers that may result in physical injury or property damage. Examples of the varieties of exposures typically covered under general liability insurance include contractual liabilities, liabilities from goods sold, and accidents on the insured premises. The damage or injury may be a result of carelessness and unintentional. General liability insurance for South Dakotans may be a single policy or can be combined with multiple policies.
A package policy, also called a bundle policy, is a type of insurance policy for an owner of a small business that combines various types of insurance into a single policy. A common package policy in the Mount Rushmore state incorporates general liability insurance (unraveled above) and commercial property (unraveled below); although a package policy may be planned to comprise nearly any type of coverage, depending on the needs of the entity. A package policy is invaluable for an owner of a small entity because it allows for a heap of flexibility to adapt to a policy particularly for the unique needs and risk exposures of the business.
Commercial Property Insurance is available to provide coverage for any type of South Dakotan commercial property, and includes, important papers, building, supplies, tools, furniture, inventory, and personal property. Commercial property insurance in South Dakota provides protection against a number of perils, such as windstorm, hail, explosion, fire, theft, vandalism, natural disasters, and lightning strikes. A number of industries can benefit from this type of insurance, including automobile body shop owners, retailers, not-for-profit organizations, product manufacturers, and businesses in the service industry.
Workers’ compensation insurance in South Dakota offers coverage against employee work-related injuries or work-related illnesses for any enterprise that has employees working for them. Workers’ compensation insurance in South Dakota is a no-fault, state-mandated insurance system designed to compensate personnel who suffer injuries or an illness during work. Because the state of South Dakota has a specific requirement for entities with employees to carry workers’ compensation, failure to carry it can expose small business owners to harsh fines and civil penalties, or occasionally, cause the organization to be liable for the cost of injuries sustained by their workers. By having workers’ compensation insurance in South Dakota, workers receive medical care and lost wages coverage in exchange for the promise that the employee will not sue the employer.
If your company owns at least one vehicle, it’s necessary to be protected by commercial auto insurance in South Dakota. Commercial auto insurance provides financial protection to business executives and their drivers in the Midwestern state of South Dakota by offering coverage for a company’s use of trucks, vans, cars, or other vehicles for professional duties. Commercial auto insurance covers damages and medical costs that result from vehicle accidents, as well as vandalism and damage from hail storms. Coverage for firms in South Dakota may include vehicles owned, rented, leased, or hired by your company, along with employee-owned vehicles used for your work-related operations. For this latter reason, it’s recommended that companies obtain a commercial auto insurance policy if employees use their own vehicle to perform transportation-related functions for the business; this is known as non-owned commercial auto insurance.
Commercial umbrella insurance begins at the point that your general liability, commercial auto insurance, or other liability coverage stops. Your business benefits from umbrella insurance since your current liability policies may have coverage limits, and may not cover all expenses if a disastrous or unanticipated event occurs. Commercial umbrella insurance in South Dakota is an urgent source of coverage that fills in the gaps and covers specific exclusions in your primary business liability coverage. Umbrella insurance is a tremendous way to have additional coverage for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in South Dakota to Consider
Errors and Omissions insurance policies provide South Dakota-based businesses and staff with protection against lawsuits and claims made by clients or customers for neglectful acts, mistakes, and oversights made while conducting business that resulted in a loss of income or production on the part of the customer or client. Errors and Omissions insurance covers legal defense and court costs, along with settlements as detailed on the insurance contract. In the medical field, immunologists require malpractice insurance, so small business owners who provide services or consulting advice, either directly or through subcontractors, need errors and omissions insurance in South Dakota.
Professional liability insurance in South Dakota provides extra protection for professionals, such as financial analysts, accountants, and general contractors, from being responsible for the complete legal cost of defending against a claim of carelessness, error, failure to perform, or omission made by a client as well as damages allocated in that claim. The coverage’s primary focus is on the financial burden on the part of the client from this type of so-called claim with respect to a product or service provided by the employee. Professional liability insurance may offer claim coverage, even if the legal actions turn out to be unproven. Professional liability insurance is required by law in some kinds of professional practices, including legal and medical, but is also required by contract in other industries.
Employment Practices Liability Insurance in South Dakota (EPLI) provides small business owners with protection against accusations of discrimination, wrongful termination, sexual harassment, breach of contract, wage law violations, false imprisonment, emotional anguish, libel, slander, mental torture, negligent hiring and promotion decisions, and defamation claims. Employment practices liability insurance is based on the laws, acts, and protection from VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act — all of which the Equal Opportunity Employment Commission (EEOC) enforces.
Fidelity Bonds in South Dakota
Fidelity bonds in South Dakota are a form of insurance purchased by owners of small entities in order to protect against losses, like fraud, embezzlement, or theft by their employees. Since reimbursement from employee dishonest practices is generally not available due to the money already being spent, fidelity bonds indicate an important safeguard for a small business owner who would otherwise have to suffer these financial losses. In many cases, the business has protection against these types of acts including employee screening, internal controls, and careful supervision, but it isn’t always enough. Losses suffered from employee thefts of money, property, or securities are all covered under fidelity bonds insurance in the Mount Rushmore state. There are three main types of fidelity bonds which include business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in South Dakota
A surety bond is a binding agreement or contract shared between three parties: the principal, obligee, and surety (insurance company). It represents the assurance they will pay a specified amount should a party fail to meet a commitment, such as satisfying the terms of the contract. A surety bond protects the recipient from loss if the contract is not fulfilled, while the surety corporation takes on the liability for nonperformance. A surety bond is normally required for payment. Owners of South Dakotan companies may need a surety bond to ensure payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be eligible for licenses. While surety bonds in South Dakota are more commonly used in the construction industry, surety bonds are also used by mortgage brokers, medical equipment and device suppliers, automobile dealers, health club owners, public notary organizations, and others. Because of the variety of small organizations that use and need bonds, there several different types and features of surety bonds in the state of South Dakota that offer a wide array of guarantees.
If you have a small business in South Dakota, you have most likely acquired a standard business insurance policy. However, it may surprise you to learn of the many different business insurance policies available in your home state that will cover not only basic liabilities, but other types of risks, such as from extreme weather conditions, fire, catastrophic events, theft, and litigation. Small businesses thrive in the state of South Dakota; therefore it’s crucial that you protect your business and its assets from a variety of unanticipated events and unfortunately circumstances. Whether you operate a financial firm in Sioux Falls or a gift shop in Rapid City, business insurance is a vital source of protection.