If you're one of the 77,503 residents who live in Rapid City, SD, you may need commercial coverage. When you own a business, there is a lot you have to be responsible for knowing. Workers' compensation insurance is one policy that's needed and regulated.
Fortunately, an independent insurance agent can help with coverage and premium options. They do the shopping for free so that you can save time without additional expense. Get connected with a trusted adviser in minutes.
What Are the Basics of Workers' Compensation Laws in SD?
In South Dakota, 4.47 million dollars in benefits paid are by businesses that self-insure. Rapid City requires most companies with employees to obtain workers' compensation coverage at the minimum limits. Check out what it protects.
- Workers' compensation insurance: Pays for an employee's injury or illness resulting from doing their job. It may also have coverage for disability and even death.
Where Can You Purchase Coverage in Rapid City, SD?
There are three different types of workers' compensation options you can obtain in Rapid City, SD. At a minimum, you'll have to carry the state-required limits of liability for your employees. Take a look at your options regarding workers' compensation insurance.
- You can purchase workers' compensation through a private market. Local professionals represent these carriers, and they have options on policy and premiums.
- If you meet specific financial criteria, you can self-insure. This means a group of employers pool their funds to offer coverage to their staff.
- The last resort is through the assigned risk market. This group of companies will write your workers' compensation policy with a higher rate and usually lower coverage. It can only be utilized when two other private carriers have denied you.
How Experience Modification Rating Affects Your Premium in South Dakota
In Rapid City, SD, when your workers' compensation premium hits a certain number in two years, you'll have an Experience Modification Factor (X-mod) assigned. An X-mod tells carriers how to rate your policy. It works like this.
- When you have an X-mod of 1.0, it doesn't affect your premium. Every employer will start with a 1.0 X-mod, and it's the baseline.
- When you have an X-mod greater than 1.0, it is considered a debit mod. That means you had losses, and your premiums will increase.
- When you have an X-mod less than 1.0, it is the credit mod. This is the best spot because your loss history was better than expected, and you pay lower premiums because of it.
What Does Workers' Compensation Cover in Rapid City, SD?
A workers' compensation claim could last for years. Most small business owners in Rapid City, SD, won't have enough cash flow to sustain a significant loss like this. Check out what a workers' compensation policy can cover.
- Disability insurance
- The death benefit to a surviving family
- Lost wages
- Medical expenses
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Who Does Workers' Compensation Cover in Rapid City, SD?
Did you know that any contractor who does work for you without insurance can file a claim against yours? That means your commercial auto, workers' compensation policy, and more could be at risk. To avoid a potential threat, obtain insurance certificates before a job is performed. Take a look at some of the people your workers' compensation policy can insure.
- W-2 employees
- Non-exempt owners, partners, members, and officers
- 1099 contractors
How Much Does Rapid City, SD, Workers' Compensation Cost?
Rapid City, SD, business insurance costs will vary from entity to entity. There is no way of telling what your exact premiums will be without first rating your risk factors. Check out some items the companies consider when deciding your costs.
- Classification codes: These are determined by how dangerous your job duty is. The more risk involved with your task, the more premiums you'll pay.
- Loss history: Your loss history will affect your premiums. The frequency and longevity of your claims, the more expensive your costs will be.
- Experience level: The longer you have workers' compensation coverage, the better policy and rates you will get.
Your job type will determine the price of your workers' compensation policy. The National Council of Compensation Insurance (NCCI) sets the base rate per classification code. The riskier the task, the more you'll pay. Check out some examples of base rate ranges per $100 of employer payroll.
- 0035 Farms-Planting & harvesting - $1.81 low rate / $3.34 high rate
- 0042 Landscaping service - $3.05 low rate / $5.64 high rate
- 0106 Tree trimming - $6.80 low rate / $12.57 high rate
- 0917 Residential cleaning service - $3.69 low rate / $6.82 high rate
- 2121 Breweries-Craft beers - $0.74 low rate / $1.37 high rate
- 2143 Winery-Wine makers - $1.46 low rate / $2.70 high rate
- 2585 Carpet cleaning - $2.35 low rate / $4.34 high rate
- 2589 Dry cleaning services - $1.49 low rate / $2.75 high rate
- 3632 Machine shop - $1.65 low rate / $3.05 high rate
- 5022 Masonry construction - $5.56 low rate / $10.27 high rate
Most Common Workers' Compensation Claims in South Dakota
The most common losses or injuries filed on workers' compensation policies are falls and lacerations. With 964.47 million dollars in workers' compensation benefits paid by South Dakota and federal programs, the chance that you'll have a claim is high. Take a look at the top items that will help reduce injury or illness on the job site.
- Hold regular safety meetings with staff
- Assign a safety officer to keep guidelines monitored and abided by
- Be proactive in workplace safety measures to avoid injury or illness
- Have posted safety protocols for all to see and follow
- Have a risk consultant review your business policies and safety measures
How a Rapid City, SD, Independent Agent Can Help
Your Rapid City, SD, commercial insurance protection is key to avoiding financial ruin. When you own a business, there are many risk factors involved, and getting sued is one of them. Workers' compensation insurance will protect your company from an employee lawsuit.
An independent insurance agent can help you decide on policy and premium options that fit your budget. They do the shopping for free, so you get the best deal in town. Connect with a local expert on TrustedChoice.com for tailored protection today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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