South Dakota Commercial Property Insurance

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Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

South Dakota Commercial Property Insurance

In South Dakota, $2,227,477,000 in commercial insurance claims were paid in 2019. When you operate a business, sufficient coverage is necessary to avoid financial disaster. Commercial property insurance can pay for a loss of your assets. 

An independent insurance agent will help you find affordable coverage that won't break the bank. They have access to several carriers so that you have options. Connect with a local expert to get started. 

What Does Commercial Property Insurance Cover?

Since there are different types of assets, there are many ways to cover your property. From business belongings to actual structures, your commercial property insurance is necessary if you want adequate protection. Take a look at what is covered under a commercial property policy in South Dakota:

  • Commercial equipment: This can be anything from machinery to forklifts. Coverage will be for actual cash value or replacement cost. A deductible usually applies.
  • Commercial structure: This covers the actual building you own up to the dwelling amount listed. A replacement cost estimator is used to determine how much it would cost to repair or replace your building. Coverage can be for actual cash value, replacement cost, or depreciated value.
  • Commercial belongings: This will cover any business belongings, such as furniture, office supplies, and more. It will be for replacement cost, actual cash value, or depreciated value.  

Commercial Property Insurance Cost

Like your other business policies, commercial property insurance costs vary. There are multiple items carriers look at when figuring out your premiums, and they will mostly be specific to your operation. Check out the risk factors insurance companies use in South Dakota:

  • Local weather
  • Claims history
  • Type of property insured
  • Square footage
  • Value or replacement cost of property
  • If you rent out the commercial property to others
  • Your insurance score
  • If you have other policies in place

Here are some of the most common weather-related risks that homeowners in South Dakota should be aware of. Note that all of the following risks are covered under your homeowners policy. Take a look:

  1. Severe storms and lightning damage
  2. Flooding and water damage
  3. Wildfires
  4. Heavy snow
  5. Burglary and other property crimes

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How Much Commercial Property Insurance Do I Need?

With 86,550 small businesses in South Dakota, multiple industries need their own specific coverages. Your commercial property should be reviewed by a professional to know the values and amount of insurance necessary. In the meantime, take a look at the different types of insurance given to commercial property owners:

  • Replacement cost: This will pay in full for your commercial property's current value at the time of loss. When you have a claim, it will restore or replace your property to a like kind and quality. 
  • Actual cash value: This coverage is equal to replacement cost minus depreciation. If your commercial property is damaged, aged, or has natural wear and tear, this will be subtracted from the replacement cost amount. 
  • Functional replacement cost: This lies between actual cash value and replacement cost. It will replace or repair your commercial property with material that is less costly but just as functional. 

Who Needs Commercial Property Insurance?

If you own equipment, buildings, and more in South Dakota, you will need commercial property insurance. Even items like inventory and customer property on your premises will need protection. Take a look at the list below to see who may need commercial property insurance:

  • Business owners
  • Commercial property owners
  • If you have commercial equipment
  • If you have a property titled in a business name

Does Commercial General Liability Insurance Cover Property Damage?

In South Dakota, your general liability policy will cover a variety of aspects. Your commercial property insurance can be combined with your general liability coverage, but each will still have separate insurance limits. Like business umbrella insurance, coverage kicks in at different parts of the claims process. Take a look at the facts:

  • General liability insurance: Pays for a lawsuit arising out of bodily injury, property damage, or slander. This is usually the most accessed policy you'll own. 
  • Commercial property insurance: Pays for the replacement or repair of a commercial structure, belongings, or equipment. This does not have its own liability limit, but is in addition to your general liability coverage.
  • Commercial package policy: This is just how it sounds, a package. This package will include general liability, commercial property, and more ancillary coverages together in one policy. Typically, lower premiums and more robust coverage options will be included in a commercial package. 

How a South Dakota Independent Agent Can Help

In South Dakota, your business is a calculated balance of cash flow, services, and expenses. If you're the proud owner of property in any form or fashion, you probably need coverage. Fortunately, commercial property insurance can help. 

An independent insurance agent can guide you in the right direction where the coverage has options, and the premiums are low. They work with several carriers, so you don't have to. Connect with a local expert on TrustedChoice for custom quotes in minutes. 

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