If your North Dakota corporation has employees, yes, it must carry workers compensation on them through the state fund, Workforce Safety and Insurance (WSI), from the first day they work. The surprise for many owners is the officers: in North Dakota a corporate officer is treated as an employer, not an employee, so an officer is left off the policy by default, the opposite of states where officers are automatically covered. Officers who want protection can buy optional coverage, so it pays to get the setup right.
Who this is for: Owners and officers of a North Dakota C-corp or S-corp, whether a one-person corporation or a company with a payroll of employees.
The short version
- Employees must be covered through WSI from the first day, with no headcount minimum.
- The president, vice presidents, secretary, and treasurer are treated as employers and are left off by default.
- A director who is not otherwise employed by the corporation is also treated as a non-employee.
- An officer who wants their own injuries covered buys optional coverage, which can also cover a spouse and children under 22.
- The corporation pays the full premium for its employees and cannot deduct any of it from their wages.
How North Dakota treats corporate officers
North Dakota folds corporate officers into its definition of an employer, so the president, vice presidents, secretary, and treasurer are not employees and are off the policy by default. A member of the board of directors who does no other work for the corporation is treated as a non-employee too. That is why a small corporation whose only workers are its officer-owners may have no mandatory premium at all. Officers who want their own on-the-job injuries paid can buy optional coverage for themselves, which can also cover a spouse and children under 22. Everyone who is not an officer or an unemployed director, meaning your regular employees, must be covered from the first day.
Officers and employees at a glance
| Person | Covered by default? | What to know |
|---|---|---|
| President, vice president, secretary, treasurer | No, treated as an employer | Off by default; may buy optional coverage for themselves |
| Director not otherwise employed by the corporation | No, treated as a non-employee | Off by default; a director who also works for the company is an employee for that work |
| Regular employees | Yes, from the first day | No headcount minimum; part-time and seasonal count |
Should your officers opt in?
Because officers are off by default, the decision is whether to opt in. An officer doing hands-on or hazardous work often buys optional coverage, because the state fund would then pay their medical care and lost wages after an on-the-job injury. An officer who only works at a desk and carries good health and disability insurance may choose to stay off. Whatever you decide, remember two things: only a genuine officer or an unemployed director is off the policy, so an owner doing regular production work should be sure of their status, and the state fund never defends a lawsuit, so a corporation with employees usually adds stop-gap employers liability to its general liability policy.
A West Fargo example
Illustrative, not a quote. A family-run manufacturing corporation in West Fargo has three officers, plus six production employees. The six employees are covered through WSI from the first day, and the corporation pays the whole premium. All three officers are treated as employers and are off the policy by default; one officer who runs the shop floor buys optional coverage anyway because of the injury risk. The company also carries stop-gap employers liability so a workplace-injury lawsuit would be defended. See our workers comp for manufacturers page.
Real questions North Dakota owners ask
Does my North Dakota corporation need workers comp?
If it has employees, yes, through the state fund, WSI, from the first day they work. There is no headcount minimum. Officers can be left off the policy, but regular employees must be covered.
Are corporate officers covered automatically in North Dakota?
No, and this is backward from most states. The president, vice presidents, secretary, and treasurer are treated as employers and are off by default. An officer can buy optional coverage to opt in for themselves.
Which officers are treated as employers?
North Dakota names the president, vice presidents, secretary, and treasurer of a business corporation as employers, so they are not employees. A board director who does no other work for the corporation is also a non-employee.
How does an officer get covered if they want it?
The officer buys optional coverage through WSI, and the corporation then reports that officer's income up to the state cap. Officers doing physical or hazardous work often choose to opt in for that protection.
Do part-time or seasonal employees count?
Yes. North Dakota has no part-time or seasonal exception, so any non-officer employee is covered from the first day and their wages must be reported to the state fund.
Can we deduct the premium from an employee's pay?
No. The corporation pays the whole premium, and deducting any part of it from an employee's wages is illegal in North Dakota. Employees pay nothing toward their own coverage.
Does the state policy defend the corporation in a lawsuit?
No. WSI pays a hurt worker's benefits but does not provide a legal defense. Corporations with employees usually add stop-gap employers liability to their general liability policy for that.
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?
- 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)
- Workers comp vs employers liability
- What workers comp does not cover
- North Dakota manufacturer 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.