S. Dakota Director: Don’t Charge Work Comp Premiums for Independent Contractors

Merle Scheiber, director of South Dakota’s Insurance Division, has issued a reminder to workers’ compensation insurers that bona fide independent contractors are not required to carry workers’ comp insurance under state statute.

Scheiber said the division has found that some workers’ compensation insurers have been charging premium for bona fide independent contractors in South Dakota.

Scheiber’s Sept. 5 bulletin reminded companies writing workers’ compensation insurance business that they must:

The division will review insurers’ processes and notices to determine their adequacy.

Examining payroll and noting the existence or absence of workers compensation policy certificates alone do not constitute an adequate process to charge premium for independent contractors.

Source: South Dakota Division of Insurance