If your North Dakota business has any employees, yes, you need workers compensation, and you buy it only from the state fund, Workforce Safety and Insurance (WSI). North Dakota requires it from your very first hire, with no minimum headcount and no exception for part-time, seasonal, or occasional staff. The part that surprises owners is that you cannot shop for it, because WSI is the only seller, so the real work is opening your account correctly and covering the right people.
Who this is for: Any North Dakota owner trying to figure out whether the law requires a policy, who has to be on it, and how the state-only system changes the usual advice.
The short version
- One employee makes coverage mandatory; North Dakota has no headcount minimum and no part-time exception.
- You buy from the WSI state fund only, because private companies cannot sell workers comp in North Dakota.
- Owners are left off by default and buy optional coverage to opt in, unlike states where owners are automatically covered.
- The employer pays the whole premium; by law you cannot deduct any of it from an employee's pay.
- The state fund pays a hurt worker's benefits but will not defend you if a worker sues, so many owners add a small coverage for exactly that, called stop-gap employers liability.
When North Dakota requires coverage
The trigger is simple: your first non-exempt employee, before they start work. There is no waiting period and no size below which you are exempt, and full-time, part-time, seasonal, and occasional workers all count. A narrow set of work sits outside the mandate, most notably farm labor and household domestic service, members of the clergy and staff who maintain a place of worship, railroad workers, and certain short-haul out-of-state trucking. One catch worth knowing: a custom farming operation loses the farm exemption, and must carry coverage, if it is based outside North Dakota or runs more than 30 working days in the year. When in doubt, treat a paid worker as covered and confirm before you assume an exemption.
Who has to be covered
| Person | Covered in North Dakota? | Notes |
|---|---|---|
| Your employees (W-2) | Yes, from the first day | No headcount minimum; part-time and seasonal count |
| You, the owner | Not by default | Sole proprietors, partners, officers, and LLC members buy optional coverage to opt in |
| A worker you call a 1099 contractor | Often yes | Treated as your employee unless the common-law right-of-control test is met |
| Farm or household workers | Generally exempt | Agricultural and domestic service sit outside the mandate; you may still buy coverage |
Why the state-only system changes your plan
In most states you would compare carriers and prices. In North Dakota there is nothing to compare, because WSI is the only place to buy. That shifts where the savings are: making sure your people are reported in the correct work category, since rates vary a lot by the kind of work, and reporting payroll accurately so you are not overbilled at audit. It also means one coverage is missing from the state policy. WSI pays an injured worker's medical care and lost wages, but it does not hire a lawyer to defend you if someone sues you over a workplace injury, so many employers add a stop-gap employers liability endorsement to their general liability policy to fill that gap.
A Bismarck example
Illustrative, not a quote. A Bismarck cafe owner hires two part-time baristas. Even though nobody is full-time, North Dakota requires coverage before their first shift, so the owner opens a WSI account and reports their wages. The owner pays the full premium and cannot pass any of it to the baristas, because deducting it from their pay is illegal here. The owner also adds stop-gap employers liability to the shop's general liability policy so a lawsuit over an injury would be defended. See our workers comp for restaurants page.
Real questions North Dakota owners ask
Do I really need workers comp in North Dakota with just one worker?
Yes. North Dakota requires coverage from your first employee, with no minimum headcount. Part-time, seasonal, and occasional workers all count, and you buy the coverage from the state fund, WSI.
Can I buy North Dakota workers comp from a private insurance company?
No. North Dakota is a state-fund state, so workers comp is sold only by Workforce Safety and Insurance, known as WSI. You open a WSI account instead of shopping carriers, and there is no self-insurance option.
Do I need 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 employees must always be covered.
Are part-time or seasonal workers exempt?
No. North Dakota has no part-time or seasonal exception. Anyone who works for you for pay is generally a covered employee from day one, so their wages have to be reported to WSI.
What is not covered by the state workers comp policy?
WSI pays a hurt worker's medical bills and lost wages, but it does not defend you if you are sued over an injury. Owners add a stop-gap employers liability endorsement to their liability policy to cover that.
Does hiring my first worker change my insurance?
Yes. The first employee triggers the duty to open a WSI account and report payroll, and it is a good time to add stop-gap employers liability and confirm your general liability limits with the people you contract with.
Is farm or household help exempt in North Dakota?
Usually yes. Agricultural labor and household domestic service sit outside the mandate, though a custom farming operation based out of state or running more than 30 days a year loses that exemption. You can still buy coverage by choice.
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)
- 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
- Workers comp vs employers liability
- North Dakota restaurant 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.