If your North Dakota partnership has any non-partner 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 partners themselves are a different story: North Dakota treats partners like sole proprietors, meaning they are left off the policy by default and are not reported as payroll. Partners who want the state fund to pay their own on-the-job injuries can buy optional coverage, but they are never automatically on the policy.
Who this is for: North Dakota general partnerships, from two-person professional partnerships to family partnerships with employees on payroll.
The short version
- A partnership with any non-partner employee must open a WSI account and cover that person from day one.
- Partners are left off the policy by default, the same way sole proprietors are.
- Any partner who wants their own injuries covered buys optional coverage for themselves.
- You buy from the state fund only; there is no private carrier to shop in North Dakota.
- The partnership pays the full premium for employees and cannot deduct any of it from their wages.
How North Dakota treats partners
Partners are not employees under North Dakota law. That means a partnership made up only of partners, with no other staff, owes no mandatory premium. As soon as the partnership hires a non-partner employee, that employee must be covered from day one, but the partners still are not required to cover themselves. A partner who wants coverage for their own work injuries buys optional coverage, which can also extend to a spouse and children under 22. This is the same default that applies to sole proprietors, and it is the opposite direction from where many states put owners, so a partnership that later incorporates should revisit the question.
What applies to your partnership
| Your setup | Mandatory coverage? | What to do |
|---|---|---|
| Partners only, no other staff | No mandatory premium | Each partner may buy optional coverage for themselves |
| Partners plus employees | Yes, for the employees | Open a WSI account and report employee wages; partners may still opt in |
| Using 1099 help | Often yes | A helper is treated as your employee unless the common-law test is met |
Deciding whether partners opt in
Because partners start off the policy, the choice is individual. A partner doing physical or hazardous work usually buys optional coverage, since a serious job injury is exactly what the state fund pays for. A partner who works at a desk and carries solid health and disability insurance may stay off. Two reminders: opting in is done partner by partner through WSI, and the state fund never pays for a legal defense, so a partnership with employees typically adds stop-gap employers liability to its general liability policy to cover a workplace-injury lawsuit.
A Bismarck example
Illustrative, not a quote. Two partners run a Bismarck accounting practice as a general partnership with three bookkeepers on staff. The three employees are covered through WSI from their first day, and the partnership pays the whole premium. Both partners are off the policy by default; one buys optional coverage for herself because she also visits client job sites, while the other stays off and relies on personal health insurance. The partnership adds stop-gap employers liability to its liability policy in case of an injury lawsuit. See our workers comp for accountants and bookkeepers page.
Real questions North Dakota owners ask
Does our North Dakota partnership need workers comp?
If you have any non-partner employees, yes, through the state fund, WSI, from the first day. If the business is only partners, there is no mandatory premium, though partners can buy optional coverage.
Are partners covered in North Dakota?
Not by default. North Dakota treats partners like sole proprietors, so they are left off the policy unless they buy optional coverage for their own injuries.
How does a partner get their own coverage?
The partner buys optional coverage through WSI and reports their own income up to the state cap. It is decided partner by partner, so one partner can be covered while another is not.
Where do we buy coverage for our employees?
Only from the state fund, Workforce Safety and Insurance, known as WSI. North Dakota does not allow private workers comp carriers, so you open a WSI account and report your employees' wages.
Do part-time or seasonal employees count?
Yes. North Dakota has no part-time or seasonal exception, so any non-partner employee is covered from the first day and those wages must be reported to WSI.
What if we use 1099 contractors?
They often count as your employees. North Dakota treats a worker as your covered employee unless the common-law right-of-control test is met. Confirm status before relying on the 1099 label.
Does the state policy defend the partnership if we are sued?
No. WSI pays a hurt worker's benefits but does not provide a legal defense. Partnerships 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?
- I own a corporation (C-corp or S-corp): do I need it?
- 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 accountant 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.