If you skip workers compensation in North Dakota and a worker is hurt, the state can bill you the full cost of that claim plus a stiff penalty, on top of the premiums you should have paid. Coverage comes from the state fund, Workforce Safety and Insurance (WSI), and going without also strips away a protection insured employers keep: an uninsured employer loses its legal immunity, so the injured worker can sue you for damages. North Dakota can also order your work stopped and hold the people who run the business personally responsible.
Who this is for: North Dakota owners weighing the risk of going without coverage, or worried they have been uninsured for a stretch.
The short version
- You can be billed the actual cost and reserves of any injury claim that happened while you were uninsured.
- There is a civil penalty of 10,000 dollars plus 100 dollars a day for each day the violation continues.
- An uninsured employer loses its immunity, so the injured worker can sue you for damages.
- Willfully failing to secure coverage is a crime, and can be a felony if the premium owed tops 1,000 dollars.
- The president, secretary, treasurer, or person mainly responsible can be held personally liable.
What the penalties look like
North Dakota's penalties are built to recover the real cost of going without, not just to levy a token fine. If a worker is injured during an uninsured period, you can be charged the actual cost and reserves of that claim. Separately, WSI can issue a cease-and-desist order and assess a civil penalty of 10,000 dollars plus 100 dollars a day for each day the violation continues. If the failure was willful, the exposure grows: the state can collect 5,000 dollars plus three times the difference between the premium you paid and what you should have paid, and willful failure is a class A misdemeanor, or a class C felony when the premium due tops 1,000 dollars. Unpaid premiums also carry an escalating penalty that starts at 25 percent of a year's premiums and climbs for repeat years.
The main penalties at a glance
| Situation | What North Dakota can charge |
|---|---|
| Worker injured while you were uninsured | The actual cost and reserves of that claim |
| Uninsured-employer civil penalty | 10,000 dollars plus 100 dollars a day while it continues |
| Willful failure to secure coverage | 5,000 dollars plus three times the premium shortfall |
| Willful failure as a crime | Class A misdemeanor, or a class C felony if premium due tops 1,000 dollars |
| Unpaid premiums | An escalating penalty from 25 percent up to 50 percent over repeat years |
Two things owners get wrong
First, going uninsured in North Dakota does not keep you safe from a lawsuit; it does the opposite. The exclusive-remedy protection that normally routes an injury through the fund applies only to insured employers, so an uninsured employer loses that immunity and the worker can bring a damages suit. Second, the liability is personal: where the employer is a corporation or LLC, the president, secretary, treasurer, or the person with primary responsibility can be held personally liable for what is owed, so you cannot hide behind the business. The cost of coverage is almost always far less than one uninsured claim.
A Williston example
Illustrative, not a quote. A Williston roofing crew works for eight months without opening a WSI account. A worker falls and breaks an ankle. Because the business was uninsured, it can be billed for the actual cost and reserves of the claim, hit with a 10,000 dollar penalty plus 100 dollars a day, and served a cease-and-desist order. Having lost its immunity, the business can also be sued by the worker, and because the owner had primary responsibility, he is personally on the hook. Coverage would have cost a fraction of that. See our workers comp for roofers page.
Real questions North Dakota owners ask
What happens if I do not carry workers comp in North Dakota?
If a worker is hurt while you are uninsured, the state can bill you the actual cost and reserves of that claim, plus a civil penalty of 10,000 dollars and 100 dollars a day while the violation continues.
Can the state shut my business down?
It can order your work stopped. WSI can issue a cease-and-desist order against an uninsured employer, and the civil penalty runs at 10,000 dollars plus 100 dollars for each day the violation continues.
If I am uninsured and a worker is hurt, can they sue me?
Yes. North Dakota's exclusive-remedy immunity protects only insured employers, so an uninsured employer loses that protection and the injured worker can bring a lawsuit for damages against you.
Is going without coverage a crime in North Dakota?
It can be. Willfully failing to secure coverage is a class A misdemeanor, and becomes a class C felony when the premium due tops 1,000 dollars, on top of a 5,000 dollar penalty and three times the shortfall.
Am I personally responsible, or just the business?
You can be personally responsible. Where the employer is a corporation or LLC, the president, secretary, treasurer, or person with primary responsibility is personally liable for the unpaid premium and penalties.
What if I just underreport payroll?
That is treated harshly. Willful misrepresentation of payroll draws 5,000 dollars plus three times the premium shortfall, and failing to furnish payroll records can add 5,000 dollars plus up to 100 dollars a day.
What does the state policy not cover even when I have it?
WSI pays a hurt worker's benefits but does not defend you in a lawsuit. Stop-gap employers liability added to your general liability policy covers that legal defense.
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?
- 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)
- What workers comp does not cover
- Workers comp vs employers liability
- North Dakota roofer 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.