If your North Dakota LLC has any non-owner employees, yes, it must carry workers compensation on them, and it buys that coverage only from the state fund, Workforce Safety and Insurance (WSI). The part that trips owners up is how the members themselves are treated: North Dakota leaves LLC members off the policy by default and lets them opt in, rather than covering them automatically. So a member's own coverage is a choice, but the moment the LLC pays a non-owner worker, that worker must be covered.
Who this is for: Owners of a North Dakota LLC, whether a single-member LLC with no staff, a multi-member LLC, or an LLC running a payroll of W-2 employees.
The short version
- An LLC with any non-owner employee must open a WSI account and cover that worker from day one.
- Members and managers are left off the policy by default; there is no automatic owner coverage in North Dakota.
- WSI treats LLC members like other owners, so their pay is not reported as employee payroll unless they elect in.
- Any member who wants their own injuries covered buys optional coverage for themselves, which can also cover a spouse and children under 22.
- You buy from the state fund only; there is no private carrier to shop and no self-insurance option in North Dakota.
How North Dakota treats LLC members
North Dakota does not count LLC members as employees. Whether your LLC is run by its members or by managers, the owners are treated the same way a sole proprietor, partner, or corporation officer is: left off by default, not reported as payroll, and free to buy optional coverage for themselves. That optional coverage, authorized under the state's optional-coverage law, can also extend to the owner's spouse and children under 22 and takes effect once WSI approves it. The instant the LLC has a non-owner worker, though, that worker must be covered from day one, and the LLC pays the full premium without deducting any of it from the worker's wages.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no workers | No mandatory premium | The member is left off by default and can buy optional coverage for themselves |
| Multi-member, no other staff | No mandatory premium | Members are off by default; each can buy optional coverage individually |
| Any LLC with non-owner workers | Yes | Workers covered from day one through WSI; members still opt in separately for themselves |
Opting in, or staying off
Because a North Dakota LLC member starts out off the policy, the choice is whether to opt in. If you want your own on-the-job injuries paid, you buy optional coverage and report your own income up to the state cap; if you would rather rely on your own health and disability cover, you do nothing and stay off. Many owner-run LLCs that hire staff cover the workers and leave the members off, then revisit it if an owner is doing risky field work. Remember that the limited liability in an LLC shields your personal assets from many business debts, but it does not answer an injured worker, which is exactly what WSI is built to handle. And because the state fund does not defend lawsuits, adding stop-gap employers liability to your general liability policy is worth a look.
A Grand Forks example
Illustrative, not a quote. A two-member electrical contracting LLC in Grand Forks runs the business with one W-2 apprentice. Because the LLC has a non-owner worker, it opens a WSI account, and the apprentice is covered from day one, with the LLC paying the full premium. Both members work in the field and want their own injuries covered, so each buys optional coverage for themselves. When a builder asks for proof the business carries workers comp, the LLC can show its WSI account the same day. See our workers comp for electricians page.
Real questions North Dakota owners ask
Does my North Dakota LLC have to carry workers comp?
If it has any non-owner employees, yes, from day one, bought through the WSI state fund. If it is only members, there is no mandatory premium, though members can buy optional coverage for themselves.
Am I covered as an LLC member in North Dakota?
Not by default. North Dakota leaves LLC members off the policy and lets them opt in, the opposite of many states. You buy optional coverage if you want your own injuries paid by the state fund.
Do I need coverage for a single-member LLC with no workers?
There is no mandatory premium if you have no employees. The member is left off by default. You can buy optional coverage for yourself if you want the state fund to pay your on-the-job injuries.
How do I get coverage for myself as a member?
You buy optional coverage through WSI and report your own income up to the state cap. That coverage can also extend to your spouse and children under 22, and it starts once WSI approves your application.
Does having W-2 workers change things for my LLC?
Yes. Even one non-owner employee makes coverage mandatory from day one. You open a WSI account and report that worker's wages, while members still decide separately whether to opt in for themselves.
Can I deduct part of the premium from my workers pay?
No. In North Dakota the LLC pays the whole premium, and deducting any part of it from an employee's wages is illegal. Your workers pay nothing toward their own coverage.
Does the state policy defend my LLC if a worker sues?
No. WSI pays a hurt worker's benefits but does not provide a legal defense. LLCs 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'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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- North Dakota electrician 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.