Business insurance • South Dakota roofing contractors
South Dakota Roofing Contractor Insurance: Excise Tax License and City Rules
South Dakota does not issue a state roofing or general contractor license. Roofing businesses need a contractor’s excise tax license, a tax registration for the 2% excise tax on covered gross receipts. Licensing is local: Sioux Falls, for example, licenses roofers and requires at least $300,000 of general liability and a $20,000 compliance bond.
This guide covers South Dakota roofing rules, the excise tax license, city requirements, coverage, and typical costs. Blake Insurance Group is an independent agency licensed in South Dakota, and a licensed agent can compare quotes for your roofing business.
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South Dakota roofing rules
| Requirement | Detail |
|---|---|
| State license | None for roofing or general contracting |
| Contractor’s excise tax license | Required for covered work; 2% of covered gross receipts |
| Sioux Falls | Local roofing license and exam, $300,000 general liability, $20,000 compliance bond |
| Other cities | Rules vary; some have no credential |
Sources: Contractor License Requirements (South Dakota roofing guide), SD Department of Revenue contractor’s excise tax guide.
South Dakota workers’ compensation
South Dakota’s workers’ compensation law covers most employers, with limited exceptions. Confirm your obligation and any contract requirements with the Department of Labor and Regulation (Contractor License Requirements (South Dakota roofing guide)).
Coverage most South Dakota roofers carry
- General liability: third-party injuries and property damage, such as a dropped bundle that damages a car or a leak that ruins a homeowner’s ceiling.
- Workers’ compensation: medical bills and lost wages if a crew member is hurt, including falls.
- Commercial auto: trucks and trailers used to haul crews, materials, and debris.
- Tools and equipment (inland marine): ladders, nail guns, and compressors on job sites or in transit.
- Commercial umbrella: extra liability limits on top of general liability and auto, often required on commercial jobs.
What South Dakota roofers pay
| Policy | Monthly | Annual |
|---|---|---|
| General liability | $317 | $3,808 |
| Workers’ compensation | $175 | $2,101 |
| Commercial auto | $268 | $3,212 |
| Business owner’s policy | $125 | $1,503 |
| Tools and equipment | $42 | $505 |
| Commercial umbrella | $93 | $1,111 |
Median costs for roofing contractors who quoted through Insureon, mostly businesses with fewer than five employees. Your price depends on payroll, roof types, height, claims history, and location.
South Dakota roofing insurance FAQs
Do South Dakota roofers need a license?
There is no state roofing license, but cities such as Sioux Falls license roofers, and covered work needs a contractor’s excise tax license.
How much insurance does Sioux Falls require for roofers?
At least $300,000 of general liability and a $20,000 compliance bond.
Do South Dakota roofers need workers’ comp?
The state’s law covers most employers, with limited exceptions.
Related guides
Important information
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
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