Sioux Falls Business Insurance

Your Complete Guide to Sioux Falls, SD Business Insurance

Find the right business insurance policy for you.

With its growing population and favorable tax rate, Sioux Falls is a great place to own a business. If you are among the 15,000 small business owners in this city, you will want to protect your company’s finances with a suitable commercial insurance policy. More than $650 million is paid out in business insurance claims in South Dakota each year. Will your company be covered if disaster strikes? Independent Insurance Agents can help you identify the risks that are unique to your particular business and can recommend the appropriate coverage solutions. Find an insurance agent near you to start comparing customized quotes.

Liability Insurance for Small Businesses in Sioux Falls, SD

Liability coverage is a vital part of any commercial insurance policy. It is designed cover your business against the various costs associated with many of the liability risks your company may have. All business insurance policies will include commercial general liability insurance (CGL). This insurance includes two main components:

  • Premises liability insurance: This can cover third-party injuries, illnesses, or property damage if they occur as a result of accidents on your business premises. 
  • Product liability insurance: This can cover your Sioux Falls business if products you produce, sell, or promote cause injuries, illnesses, or property damage to consumers.

Your independent agent will ask you questions about your business and can then talk to you about other kinds of liability coverage that may be appropriate. Having the right types of coverage will ensure that your business is suitably protected against all potential liability lawsuits. Some liability insurance products your agent may recommend include:

  • Professional liability insurance: This covers individuals in professional positions for damage they may cause to others due to errors in judgement and other professional mistakes. Medical malpractice insurance is one example of professional liability insurance, but it can cover other professions like real estate agents and stockbrokers.
  • Employment practices liability insurance: This covers your business if a current or former employee accuses your company of engaging in harassment, discrimination, wrongful termination, or other illegal business practices.
  • Environmental liability insurance: This helps cover the cost of restitution and cleanup if your business causes an accident that results in pollution of the land or groundwater.
  • Liquor liability insurance: This can cover businesses that sell or serve alcoholic beverages in the event that they are named in a liability lawsuit related to injuries or damage caused by an intoxicated patron.

Every business has specific liability risks, and there are a number of different policies to meet various coverage needs. Talk to your local insurance agent to learn more.

Cybercrime Insurance for Sioux Falls Businesses

An additional type of liability insurance you may want to pay particular attention to is cyber liability insurance. This is a relatively new insurance product that was designed to cover against the growing threat of cybercrime. 

  • Number of identity theft complaints in South Dakota per year: 50
  • This state has the lowest rate of identity theft complaints in the US
  • Only 22% of businesses have a cyber/data breach response plan

As hackers discover more ways to breach data security protocols, the need for cybercrime insurance is increasing. This insurance can cover your business if cybercriminals break into your computer system and steal personal and financial data belonging to your customers. Talk to your local independent agent to learn more about how your Sioux Falls business can benefit from including cyber liability coverage in your commercial insurance portfolio.

Sioux Falls Businesses Need Property Insurance

Property crimes, fires, and accidents can cause damage to your business-owned property. So too can severe weather events, such as thunderstorms and windstorms, which are not uncommon in Sioux Falls. That is why all business insurance policies include commercial property insurance.

  • Number of federally declared disasters in SD since 1953: 65
  • Most common reasons for declared disasters: Severe Storms and Wildfires

Commercial property insurance is designed cover business-owned property such as computers, tools and machinery, inventory, and furniture. If this property is lost or damaged by a covered event, your policy can provide your business with compensation that will enable you to repair or replace these items. It is important to note that flood damage poses a serious risk for some businesses in Sioux Falls. However, property damage caused by floods is not covered by commercial insurance. If your business is at risk, be sure to talk to your independent agent for information about supplementing your coverage with a commercial flood insurance policy

Business Interruption Insurance for Sioux Falls Businesses

A major disaster can sometimes force your business to remain closed for repairs for several weeks, or even months. This can have a significant impact on your business finances. That is why, in times of crisis, business interruption insurance proves so valuable. Business interruption insurance is designed to provide your company with a continuation of income during times that it must halt operations for an extended period due to forces beyond its control. With this coverage, you can continue to pay monthly expenses, loan installments, and employee salaries so you can focus on getting your business back up and running.

Sioux Falls Employers Are Required to Have Workers’ Compensation Insurance

Workers’ compensation, often referred to as “workman’s comp,” is designed to cover the cost of injuries or occupational illnesses your employs suffer while doing their jobs. It can cover medical treatment, disability payments, and, in the worst cases, provide survivor benefits to family members following an employee’s death. Workers’ compensation insurance protects your employees while shielding your business from liability lawsuits. Rates for this coverage vary according to the risks associated with the jobs your employees do. A construction or trucking company will pay significantly higher rates than an accounting firm or clothing store.

In South Dakota, nearly all businesses that have employees are required to carry workers’ compensation insurance. Exceptions are made for real estate agents, owner-operators of trucks who are certified independent contractors, and domestic servants who work fewer than 20 hours per week and fewer than six weeks in any given 13-week period. Policies can be purchased through a commercial provider or, if your business is approved, it may self-insure. 

Employee Benefits for Small Businesses in Sioux Falls

Human resources managers have demonstrated that offering your employees benefits such as life insurance and health insurance can help you attract and retain highly talented workers. If your Sioux Falls-based business has at least 50 full-time workers, you are required by law to provide them with subsidized healthcare coverage. With so many different types of coverage available, and with the high costs associated with health insurance, shopping for a suitable healthcare plan can sometimes be daunting.

  • Average amount spent on healthcare coverage by SD businesses: $94,000
  • Ranked #1 for most expensive medical insurance costs in the US
  • Average annual cost of health care in SD: $6,331/person or $15,780/family

Your local independent agent can help you find and review a wide range of affordable policies. That way, you can make an informed decision when purchasing coverage.

Why Talk to an Independent Insurance Agent in Sioux Falls?

Building a comprehensive commercial insurance policy for your Sioux Falls business can be a complicated endeavor. Independent agents make it easy. These agents can help you identify the various risks faced by your business and can ensure that you have the right coverage in place to protect your business.

Find an insurance agent in or near Sioux Falls to learn more.

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https://www.census.gov/quickfacts/fact/table/US/PST045218

https://dlr.sd.gov/workers_compensation/default.aspx

www.city-data.com 

https://www.fema.gov/data-visualization-disaster-declarations-states-and-counties

https://www.bizjournals.com/bizjournals/news/2018/09/11/to-attract-and-retain-key-employees-offer-benefits.html