Protect Your Plumbing Business with Workers' Compensation in South Dakota
Part of our guide to plumbers insurance in South Dakota.
In South Dakota, plumbers with employees are required to have Workers' Compensation insurance. This coverage pays for medical bills and lost wages when employees are injured on the job. Without it, you risk financial devastation. Workers' Compensation is not just a good idea, it's the law. In South Dakota, the risk of injury is heightened by extreme weather conditions, including blizzards and hailstorms, which can lead to costly claims. Most general contractors, commercial property managers, and municipal clients in cities like Rapid City and Aberdeen require plumbers to carry at least $1 million in general liability coverage before they are allowed on a job site.
Workers' Compensation cost for plumbers in South Dakota
Illustrative monthly workers comp estimate for a small plumber operation in South Dakota. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Workers' Compensation Covers for Plumbers in South Dakota
Workers' Compensation insurance for plumbers in South Dakota covers medical bills and lost wages when employees are injured on the job, including injuries from accidents, illnesses, and repetitive strain. For example, if an employee slips on a frozen pipe in Brookings and breaks their ankle, Workers' Compensation will cover their medical bills and lost wages. However, it does not cover damage to tools and equipment, which would be covered under a separate policy, such as Tools & Equipment insurance. Another example is if an employee is injured while driving a company vehicle in Sioux Falls, Workers' Compensation will cover their medical bills, but not the damage to the vehicle, which would be covered under Commercial Auto insurance.
Do Plumbers in South Dakota Need Workers' Compensation?
In South Dakota, workers' compensation is generally required as soon as a plumber hires their first employee. This means that even small plumbing businesses with just one employee must carry Workers' Compensation insurance. Without it, plumbers risk financial devastation if an employee is injured on the job. The risk of injury is heightened in South Dakota due to extreme weather conditions, including blizzards and hailstorms, which can lead to costly claims. For example, a plumber in Rapid City may face a higher risk of injury due to the city's location in a high-risk area for hailstorms.
A Real Workers' Compensation Claim a Plumber Could Face
It was a routine job until an employee slipped on a frozen pipe in Aberdeen and broke their ankle. The employee required surgery and was out of work for several weeks, resulting in medical bills of $20,000 and lost wages of $10,000. Workers' Compensation insurance covered the entire amount, without the owner paying out of pocket. The policy paid for the employee's medical bills, including surgery and rehabilitation, as well as their lost wages, ensuring the employee received the care they needed without financial burden. The owner avoided a significant financial loss, which could have devastated the business.
What Workers' Compensation Costs for Plumbers in South Dakota
The cost of Workers' Compensation insurance for plumbers in South Dakota can vary, but estimates range from $55-$215/month. Factors that affect the cost include revenue, payroll, coverage limits, deductible, and claims history. For example, a plumber in Sioux Falls with a high-risk job, such as working at heights, may pay more for Workers' Compensation insurance than a plumber in Brookings with a lower-risk job. Additionally, the cost of Workers' Compensation insurance may be higher in remote rural areas, such as those found in western South Dakota, due to limited emergency response and increased cost of on-site incidents.
How to Get Workers' Compensation in South Dakota
To get Workers' Compensation insurance in South Dakota, plumbers should gather information about their business, including revenue, payroll, and claims history. They should also consider the coverage limits and deductible they need. Plumbers can compare quotes from different insurance providers and ask about discounts for safe work practices. For example, a plumber in Rapid City may be able to lower their premium by implementing a safety training program for their employees. In South Dakota, the cost of Workers' Compensation insurance is a small price to pay compared to the risk of financial devastation from a workplace injury, so see your rate today.
Frequently asked questions
Will my Workers' Compensation premium jump after one claim?＋
Yes, it may. After a claim, your premium may increase due to the increased risk of future claims. However, the amount of the increase will depend on the severity of the claim and your overall claims history. For example, if you have a history of safe work practices and the claim was an isolated incident, the increase may be minimal. On the other hand, if you have a history of frequent claims, the increase may be more significant.
Can I get a COI same-day for a client?＋
Yes, you can. Many insurance providers offer same-day certificates of insurance (COI) for clients. This can be especially useful for plumbers who need to provide proof of insurance to clients quickly. For example, if you have a client in Sioux Falls who needs a COI immediately, you can contact your insurance provider to see if they offer same-day COIs.
Does a sole proprietor need Workers' Compensation?＋
No, they do not. In South Dakota, sole proprietors are not required to carry Workers' Compensation insurance. However, they may still want to consider purchasing a policy to protect themselves in case of an injury. For example, if a sole proprietor plumber in Brookings is injured on the job, they may be able to receive benefits under a Workers' Compensation policy, even if they are not required to carry it.
What is not covered by Workers' Compensation?＋
Workers' Compensation does not cover damage to tools and equipment, which would be covered under a separate policy, such as Tools & Equipment insurance. Additionally, Workers' Compensation does not cover injuries that occur outside of work or that are not related to the job. For example, if an employee is injured in a car accident on their way to work, Workers' Compensation would not cover the injury.
Can I cancel my Workers' Compensation policy at any time?＋
Yes, you can. However, you should be aware that canceling your policy may leave you without coverage in case of an injury. Additionally, you may be required to provide proof of new coverage before canceling your existing policy. For example, if you are switching to a new insurance provider, you may need to provide proof of new coverage before canceling your existing policy.
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Other coverages plumbers in South Dakota should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in South Dakota change over time and vary by business. Verify current rules with the South Dakota Department of Insurance and a licensed agent before purchasing a policy.