Workers compensation in North Dakota is priced by the state fund, Workforce Safety and Insurance (WSI), which sets its own rates and is the only place to buy, so there is no shopping around. Your premium is a share of the wages you pay in each work category, with a minimum of 250 dollars per period, and unlike most states the employer carries the whole cost, because deducting any part of it from a worker's pay is illegal here. As a rough anchor, a small, low-risk employer such as an office often pays a few hundred to about 1,500 dollars a year, while a higher-risk trade like roofing can run several thousand.
Who this is for: North Dakota owners trying to understand what drives their workers comp cost and how to keep it accurate.
The short version
- Premium is a share of the wages you pay in each work category, set by WSI's own rates.
- A minimum premium of 250 dollars per period applies even with little or no payroll.
- As a rough anchor, a small low-risk office runs a few hundred to about 1,500 dollars a year; a higher-risk trade like roofing runs several thousand.
- The employer pays the whole premium; deducting any part of it from a worker's pay is illegal.
- WSI often returns dividends to employers, so many businesses get part of their premium back.
What drives your cost
Three things mostly decide your bill. The first is the work category each worker falls into, because the rate for risky work like roofing is far higher than for office work, and getting a worker into the correct category is where most pricing mistakes happen. The second is the wages you report, since premium is a share of payroll, though only up to a cap per worker set at 70 percent of the state's average annual wage, so pay above that cap is not charged. The third is the state rate itself, which WSI sets using its own classification manual rather than the national system other states use. Because WSI runs a large surplus, it has a long record of paying dividends back to employers, including a credit in recent years worth tens of millions of dollars across the state.
How the payroll system plays out
| Situation | Effect on your premium |
|---|---|
| You give a worker a raise below the cap | Higher, because premium is a share of reported wages |
| A worker earns above the 70 percent wage cap | No charge on the pay above the cap |
| A worker is in a higher-risk work category | Higher rate applied to those wages |
| WSI declares a dividend | Part of your premium can come back as a credit |
Keeping the bill accurate
Because you cannot shop the price, the savings in North Dakota come from accuracy. Make sure each worker is reported in the right work category, since a wrong category can mean paying a roofing rate for office work or the reverse. Report wages carefully so you are not overbilled, and keep clean records in case of an audit. Do not try to shift any of the cost onto workers, because that is illegal and carries its own penalties. And budget separately for stop-gap employers liability, because the state fund does not defend lawsuits and that coverage is bought from a private insurer as an add-on to your general liability policy.
A Bismarck example
Illustrative, not a quote. A Bismarck heating and cooling company reports its installers in the correct trade category and its office staff in a low-rate clerical category. When it promotes an installer with a raise that stays under the wage cap, the premium rises a little because premium tracks payroll. In a year WSI declares a dividend, part of the premium comes back as a credit. The owner pays the whole premium, takes no deduction from workers, and budgets separately for stop-gap employers liability. See our workers comp for HVAC contractors page.
Real questions North Dakota owners ask
How is workers comp priced in North Dakota?
As a share of the wages you pay in each work category, using rates WSI sets itself. You report payroll to the state fund, and there is a minimum premium of 250 dollars per period.
Do my workers pay part of the cost?
No. In North Dakota the employer pays the whole premium, and deducting any part of it from a worker's wages is illegal. This is different from a handful of states that allow a worker share.
Can I shop around for a lower rate?
No. Coverage is sold only by the state fund, Workforce Safety and Insurance, which sets the rates itself. Savings come from accurate work categories and payroll, not from comparing carriers.
Is there a cap on the wages I am charged on?
Yes. Premium is charged on each worker's pay only up to a cap set at 70 percent of the state's average annual wage, so pay above that cap is not included in the premium calculation.
What makes my rate higher or lower?
The biggest factor is the work category each worker falls into, since risky work carries a much higher rate than office work. Reporting workers in the correct category is the main way to avoid overpaying.
Does North Dakota really pay dividends back?
Often, yes. WSI runs a large surplus and has returned dividends to employers for years, so many businesses receive part of their premium back as a credit, though a dividend is declared year to year, not guaranteed.
If a worker sues me, is that covered by what I pay the state fund?
No. The state fund pays a hurt worker's benefits but does not defend a lawsuit, so that protection, called stop-gap employers liability, is a separate cost bought from a private insurer as an add-on to your general liability policy. Budget for it separately.
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?
- What happens if I don't carry workers comp?
- 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)
- Glossary: workers comp class code
- What workers comp does not cover
- North Dakota HVAC 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.