Marcia Hultman

Cabinet Secretary

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South Dakota Electrical Commission

Undertaking and Insurance Requirement

According to South Dakota Codified Law (SDCL) 36:16:20, an applicant shall execute and deposit with the State Electrical Commission an undertaking in the sum of ten thousand dollars, and a public liability insurance policy in a sum of not less than one hundred thousand dollars per occurrence and three hundred thousand dollars aggregate limit for bodily injury and property damage insurance with limits of not less than twenty-five thousand dollars per occurrence or a combined single limit of three hundred thousand dollars, or security approved by the commission in a sum equal to that amount, conditioned for the faithful performance of all electrical work undertaken by the electrician and the strict compliance with all the provisions of this chapter and the requirements of the commission.

The required undertaking and liability insurance shall be in force at all times with certificates of insurance on file in the commission office. No electrical contractor or Class B electrician licensed under the provisions of this chapter need furnish any additional undertaking for municipal license as such contractor or electrician. In the case of a partnership or corporation, the licensed person is exempt from insurance or undertaking requirements if the employer satisfies the requirements. In addition, a deposit shall be made with the commission in the amount of fifty dollars at the time of the execution of the undertaking and biennially at the time of renewal of the applicant's license.

Deposits shall be accumulated by the commission in a special fund to be used for the correction or completion of installations which the contractor or Class B electrician refuses or is unable to correct or complete, for uncollectable inspection fees or administrative fees, administrative costs of maintaining the fund and costs of enforcing provisions of this section.

Disbursement from the fund may not exceed ten thousand dollars per occurrence. The commission shall waive the deposit at the time of renewal of the license for electricians who have made an initial deposit under this section if at the time of renewal the fund exceeds fifty thousand dollars. The commission may prescribe forms for the undertaking and may promulgate rules in accordance with Chapter 1-26 as necessary to carry out the intent of this section.

See our Forms page for the Electrical Contractor and Class B Electricians' Bond Application.

Contact the Commission for more information.