Most North Dakota businesses need workers compensation the day they hire anyone, general liability that clients and landlords insist on, and property coverage, or a bundled "package" policy that rolls property and liability together, for their space and equipment. Workers comp is the one North Dakota law forces on you, and it works unlike almost any other state: you buy it only from the state fund, Workforce Safety and Insurance (WSI), because private insurers are not allowed to sell workers comp here, and there is no minimum headcount, so your first employee triggers the duty to carry it.
Who this is for: North Dakota owners, from a one-truck contractor in Williston to a 30-person shop in Fargo, who want to know what the state requires, what their contracts require, and how to buy it without overpaying.
The short version
- Workers comp is required once you have any employee. North Dakota sets no minimum headcount and no part-time exception, so your first employee makes coverage mandatory.
- You buy it only from the state, not a private company. North Dakota is one of a few states where workers comp is sold only through Workforce Safety and Insurance (WSI), the state fund. There is no private carrier and no shopping around on price.
- Owners start out off the policy. Sole proprietors, partners, corporation officers, and LLC members are left off by default and file to opt in, the opposite of many states.
- Your workers pay nothing toward it. The employer pays the full premium, and North Dakota law makes it illegal to deduct any part of it from an employee's wages.
- Skipping coverage is expensive. WSI can bill you the full cost of an injury, add a 10,000 dollar penalty plus 100 dollars a day, order your work stopped, and let the injured worker sue you.
What North Dakota actually requires
Only a couple of these are true legal mandates. The rest get required by the people you do business with, which in practice is just as binding.
| Coverage | Required by North Dakota law? | Who needs it | What is at stake |
|---|---|---|---|
| Workers compensation (from WSI) | Yes, under Title 65, from your first employee | Every employer with one or more covered employees | Full injury cost billed back, a 10,000 dollar penalty plus 100 dollars a day, a stop-work order, and a lawsuit because you lose your immunity |
| Stop-gap employers liability (lawsuit defense) | No state mandate, but the state fund does not include it | Any employer that wants a defense if it is sued over a workplace injury | Paying your own legal defense out of pocket |
| Commercial auto | Yes, if you own or use business vehicles | Any business-owned or leased vehicle | Registration problems, uninsured liability |
| General liability | No state mandate | Required by most leases, clients, and general contractors | Lost contracts, blocked from a job site |
| Commercial property or a package policy | No state mandate | Anyone with a space, inventory, or equipment; landlords often require it | Out-of-pocket losses, lease default |
Who oversees it in North Dakota
WSI is unusual: it is the insurer, the rate-setter, and the enforcement agency all in one. It runs the state fund that sells your coverage, it sets its own rates using its own classification manual rather than the national rating system other states use, and it audits and penalizes employers who go without. Because there are no private workers comp carriers in North Dakota, there is nothing to compare on price, and unlike some state-fund states, North Dakota does not offer a self-insurance option either. WSI is the single seller for every eligible employer.
What business insurance costs in North Dakota
These are illustrative annual ranges for small North Dakota businesses, not quotes. Your real workers comp price is a share of the wages you pay in each work category, set by WSI's own rates, with a minimum premium of 250 dollars per period even if you have little payroll to report. WSI is heavily surplus-funded and has returned dividends to employers for years, so many businesses get part of their premium back.
| Business type | Workers comp (est.) | General liability (est.) | Package policy (est.) |
|---|---|---|---|
| Office or professional services | 300 to 1,500 dollars | 500 to 1,800 dollars | 1,000 to 3,500 dollars |
| Restaurant or cafe | 1,500 to 6,000 dollars | 1,400 to 4,500 dollars | 3,500 to 12,000 dollars |
| Landscaper or small contractor | 2,500 to 10,000 dollars | 1,200 to 4,000 dollars | Usually separate policies |
| Cleaning or janitorial | 2,000 to 8,000 dollars | 900 to 3,200 dollars | Usually separate policies |
| Retail store | 800 to 3,500 dollars | 800 to 3,000 dollars | 2,000 to 7,000 dollars |
The 14 workers comp questions North Dakota owners ask
Workers comp is where most of the confusion and most of the risk live, so we wrote a plain-English guide for every common situation. Start with the North Dakota workers comp overview, then jump to the one that matches your business:
- I own an LLC
- I am a sole proprietor
- I own a corporation (C-corp or S-corp)
- We are a partnership
- We are a nonprofit
- My workers are 1099 contractors
- I only have part-time or seasonal staff
- I only employ family members
- My team is remote or out of state
- What happens if I do not have it
- How much it costs
- How to get it
- What I need for a contractor license
A Fargo example
Illustrative, not a quote. A four-person heating and cooling company in Fargo runs as an LLC with two members and two field techs. Because the LLC has non-owner employees, North Dakota requires a WSI account, and the two techs must be covered before their first day. The two members are left off by default and can buy optional coverage for themselves if they want their own injuries paid. When the crew pulls a permit, the city wants proof the business carries workers comp, and because the WSI account is open the owner can show it the same day. See the trade detail on our workers comp for contractors page.
Real questions North Dakota owners ask
Do I need business insurance in North Dakota?
It depends on the coverage. Workers comp is required by state law once you have any employee, and you buy it from the state fund, WSI. General liability and property are not state-mandated, but leases, clients, and lenders usually require them.
Where do I buy workers comp in North Dakota?
Only from the state fund, Workforce Safety and Insurance, known as WSI. North Dakota does not allow private companies to sell workers comp, so you open a WSI account rather than shopping carriers. There is no self-insurance option either.
How many employees before I need workers comp?
One. North Dakota has no minimum headcount and no exception for part-time, seasonal, or occasional workers, so a single non-exempt employee makes coverage mandatory before they start work.
Do I have to cover myself as the owner?
Usually not by default. Sole proprietors, partners, corporation officers, and LLC members are left off unless they buy optional coverage for themselves. Your non-owner employees always have to be covered.
Do my workers pay part of the premium?
No. In North Dakota the employer pays the whole premium, and it is illegal to deduct any part of it from an employee's wages. State law is explicit about this.
What happens if I skip workers comp?
WSI can bill you the full cost of a worker's injury, add a 10,000 dollar penalty plus 100 dollars a day, and order your work stopped. You also lose your legal immunity, so the injured worker can sue you directly.
Is general liability insurance required in North Dakota?
The state does not make general liability mandatory for most businesses, but landlords, clients, and general contractors almost always require it before they will sign with you, so in practice you usually need it.
Why North Dakota owners choose Morrow
- We shop the right market for you. In North Dakota, workers compensation is sold only through the state fund at Workforce Safety and Insurance (WSI), with no private carriers to shop, so we help you open and run your WSI account correctly and place the stop-gap employers liability and other business coverages the state fund does not include.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related North Dakota guides
Every North Dakota business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in North Dakota (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- North Dakota contractor workers comp
This guide is general information, not legal advice. North Dakota rules and penalty amounts can change, so verify current requirements with North Dakota Workforce Safety and Insurance (WSI) or a licensed advisor before you rely on them. Last updated: July 2026.