To work as a contractor in North Dakota once a single job tops 4,000 dollars, you need a contractor license from the Secretary of State, and that license comes with insurance strings: you must show proof of general liability insurance, and if you have employees living in North Dakota you must show current workers compensation coverage from the state fund, Workforce Safety and Insurance (WSI). North Dakota does not require a state surety bond for the license, though some cities require their own local license and bond. Getting these pieces in place is what lets you take jobs over the threshold legally.
Who this is for: North Dakota contractors licensing for the first time or renewing, and anyone hiring a contractor who wants to know what they should carry.
The short version
- A contractor license is required once a single job's price tops 4,000 dollars.
- You show a certificate of general liability insurance that names the Secretary of State as the certificate holder.
- If you have North Dakota employees, you show a current WSI certificate of premium payment (proof your account is paid up).
- If you have no North Dakota employees, you show a WSI letter of good standing (a note confirming you owe no premium) instead.
- North Dakota does not require a state surety bond, though some cities require a local license and bond.
What the license requires
The contractor license is issued by the North Dakota Secretary of State, and the class you need depends on the size of the single largest project you take on. On the insurance side, you provide a certificate of general liability insurance in the exact name being licensed, listing the Secretary of State as the certificate holder. For workers comp, the rule turns on your workforce: if you have employees who live in North Dakota, you provide a current WSI certificate of premium payment, which is simply a document from WSI showing your account is active and paid; if you have no North Dakota employees and do not meet the state's significant-contacts tests, you provide a WSI letter of good standing instead. Unlike many states, North Dakota does not require a surety bond for the license itself.
License classes by project size
| License class | Largest single project it covers |
|---|---|
| Class A | Over 500,000 dollars |
| Class B | Up to 500,000 dollars |
| Class C | Up to 300,000 dollars |
| Class D | Up to 100,000 dollars |
Workers comp and your subs
Two workers comp points matter for contractors. First, the general liability certificate protects customers and third parties; it is not workers comp, so if you have a crew you still need active WSI coverage, and the two are checked separately. Second, if you hire subcontractors, collect each sub's WSI certificate of premium payment, or a letter of good standing if the sub has no North Dakota employees, before work starts, because North Dakota can bill a general contractor for premiums on an uninsured sub's workers, with an added 5,000 dollars plus 100 dollars a day if you knew the sub was uninsured. Keep that proof on file. Finally, since the state fund does not defend lawsuits, stop-gap employers liability on your general liability policy rounds out your protection.
A Minot example
Illustrative, not a quote. A Minot contractor takes on a remodel worth 60,000 dollars, over the 4,000 dollar threshold, so he needs a license, and because the job is under 100,000 dollars a Class D license fits. He gives the Secretary of State a general liability certificate naming the state as certificate holder, and because he has two North Dakota employees, a current WSI certificate of premium payment. When he brings on a tile sub, he collects the sub's WSI proof first, so he is not billed for the sub's workers. He adds stop-gap employers liability to his liability policy. See our workers comp for contractors page.
Real questions North Dakota owners ask
What insurance do I need to license as a North Dakota contractor?
You show a certificate of general liability insurance naming the Secretary of State as certificate holder, and if you have North Dakota employees, current WSI coverage. A license is required once a single job tops 4,000 dollars.
Do I need a surety bond for a North Dakota contractor license?
Not from the state. North Dakota does not require a surety bond for the contractor license itself, though some cities require their own local license and a contractor bond, so check locally.
Which license class do I need?
It depends on your largest single project: Class A covers work over 500,000 dollars, Class B up to 500,000, Class C up to 300,000, and Class D up to 100,000 dollars. Pick the class that covers your biggest job.
Do I need workers comp to be a licensed contractor?
If you have employees living in North Dakota, yes, you show a current WSI certificate of premium payment. If you have no North Dakota employees, you show a WSI letter of good standing instead.
I work solo with no crew. Do I owe workers comp premium?
No mandatory premium if you have no employees, but you still show a WSI letter of good standing for the license. You can also buy optional coverage for yourself if you want your own injuries paid.
When do I actually need a contractor license?
Once the cost, value, or price of a single job is more than 4,000 dollars. Below that threshold the state license is not required, though local rules and the insurance your clients want may still apply.
How do I avoid paying for a subcontractor's workers comp?
Before work starts, collect the sub's WSI certificate of premium payment, or a letter of good standing if they have no North Dakota employees, and keep it. Otherwise the state can bill you for the sub's workers.
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)?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
- 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.