If You're Self-Employed In South Dakota Do You Still Need Workers' Comp?
Workers’ compensation allows injured workers to get medical and wage benefits after an on-the-job accident without the need to sue their employer. Companies like workers’ comp just as much as employees because it protects them from being sued, which is always good.
What happens if you’re self-employed, though? You can’t sue yourself, so does that mean you do or don’t need workers’ compensation?
Self-Employment Options for Workers' Compensation
As a self-employed person, you should explore your options to get workers’ compensation for yourself. Some insurance companies will sell individual policies that will give you benefits if you get hurt while working. If you are self-employed and have employees, then your state’s laws might outright require you to purchase a workers’ compensation policy that covers your employees. While you are shopping for a policy, you might as well look for one that also covers you, the owner, which is typical.
Workers' Compensation Insurance is Not Required in South Dakota
However, here in South Dakota, the home of Whiting Hagg Hagg Dorsey & Hagg, there is actually no law recognized by the South Dakota Department of Labor and Regulation that requires employers to carry workers’ compensation insurance. If you are self-employed in South Dakota, then you are under no legal obligation to get workers’ comp insurance for yourself or your employers. Yet this does not mean this is the best idea. It is widely accepted that it is a far better investment to purchase workers’ comp insurance than risk being sued by an injured worker because, in that case, they can take money directly from you and might bankrupt your company and yourself.
If you have more questions about workers’ compensation policies and uses in South Dakota, then contact our firm at any time. We are here to help employees get full benefits and financial support after workplace accidents of all sorts and in all industries.