If you are a North Dakota sole proprietor with no employees, you owe no mandatory workers compensation premium, because you are not treated as an employee and your own income is not reported as payroll. The day you hire anyone, that changes: you must open an account with the state fund, Workforce Safety and Insurance (WSI), and cover your workers from day one, though you still are not required to cover yourself. If you want the state fund to pay your own on-the-job injuries, you can buy optional coverage for yourself.
Who this is for: North Dakota sole proprietors, from solo trades and freelancers to owners about to hire their first helper.
The short version
- A solo sole proprietor with no employees owes no mandatory premium and is left off by default.
- You can buy optional coverage for yourself, which can also cover a spouse and children under 22.
- Hire anyone and you must open a WSI account and cover the worker from day one.
- You buy only from the state fund; there is no private carrier to shop in North Dakota.
- You pay the full premium for your workers and cannot deduct any part of it from their wages.
Do you need it, and do you want it?
Two different questions sit inside this. The requirement is about your workers: none, and there is no mandatory premium; one or more, and coverage is mandatory from day one. The choice is about you: as a sole proprietor you are not an employee, so the state fund would not pay your own injuries unless you buy optional coverage. Some owners in low-risk desk work skip it and rely on their own health and disability cover; owners doing physical or hazardous work often opt in, because a serious on-the-job injury is exactly what the state fund is designed to pay for.
What applies to you
| Your situation | Mandatory coverage? | What to do |
|---|---|---|
| Solo, no workers | No mandatory premium | Optional: buy coverage for yourself to cover your own injuries |
| You plus one or more workers | Yes, for the workers | Open a WSI account and report the workers' wages; you may also buy optional coverage for yourself |
| Using 1099 helpers | Often yes | A helper is treated as your employee unless the common-law test is met, so confirm status first |
If you only need proof for a client
A common reason a solo owner looks into coverage is that a general contractor or customer wants proof of insurance. In a private-market state you might buy a small owner-only policy just to produce a certificate. North Dakota works differently: because you buy from the state fund, what a contractor usually wants to see is that you have an active WSI account, or a WSI letter confirming you have no employees and owe no premium. If you have no workers and have not bought optional coverage, you may not have an account yet, so ask the contractor exactly what they need, and if it makes sense, open one. Once you have staff, it is also worth carrying stop-gap employers liability, since the state fund does not pay to defend a lawsuit.
A Minot example
Illustrative, not a quote. A Minot landscaper runs solo as a sole proprietor and owes no mandatory premium. When he lands a commercial account that requires proof of coverage, he buys optional coverage for himself so he has an active WSI account to show, and because his work is physical, that also means the state fund would pay if he is hurt on a job. When he later hires a seasonal crew member, he reports those wages and covers the worker from day one, paying the full premium himself. See our workers comp for landscapers page.
Real questions North Dakota owners ask
Do I need workers comp as a North Dakota sole proprietor?
Not for yourself if you have no employees, because a sole proprietor is not treated as an employee. The moment you hire anyone, you must open a WSI account and cover that worker from day one.
Can I cover myself as a sole proprietor?
Yes, by choice. You buy optional coverage through WSI, and the state fund will then pay your own on-the-job injuries. That coverage can also extend to your spouse and children under 22.
Where do I buy it if I hire someone?
Only from the state fund, Workforce Safety and Insurance, known as WSI. North Dakota does not have private workers comp carriers, so you open a WSI account and report your worker's wages rather than shopping for a policy.
A general contractor wants proof of coverage. What do I show?
In North Dakota, contractors usually want to see an active WSI account, or a WSI letter of good standing if you have no employees. If you have no account, ask what they need and consider buying optional coverage.
Do 1099 helpers count as my workers?
Often yes. North Dakota treats a helper as your covered employee unless the common-law right-of-control test is met. Do not assume a 1099 label removes the duty to cover them.
I do risky physical work. Should I opt in?
Many owners in physical trades do, because the state fund pays medical care and lost wages for an on-the-job injury. If you skip it, you are relying on your own health and disability insurance for a work injury.
What does the state policy not cover for me?
It does not defend you in a lawsuit. Once you have workers, adding stop-gap employers liability to your general liability policy covers your legal defense if you are sued over a workplace injury.
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 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?
- Hiring your first employee: what changes
- North Dakota landscaper 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.