If you have a remote worker based in North Dakota, or a worker whose job is mainly performed here, you generally must cover them with the state fund, Workforce Safety and Insurance (WSI). North Dakota looks at where the work happens and where the person was hired, not where your office sits. Because North Dakota is a state-fund state, an out-of-state policy does not satisfy the requirement here, so an employer with North Dakota exposure has to open a separate WSI account for it.
Who this is for: North Dakota employers with remote or traveling staff, and out-of-state employers with a worker based in North Dakota.
The short version
- A worker whose job is mainly performed in North Dakota is generally covered here, even if your business is elsewhere.
- An out-of-state employer needs WSI coverage when it has significant contacts with North Dakota, or hires here.
- An out-of-state policy or exemption does not transfer, so North Dakota exposure needs its own WSI account.
- You buy only from the state fund; there is no private carrier to shop in North Dakota.
- The state fund pays benefits but not your legal defense, so many owners add stop-gap employers liability.
How North Dakota decides which state applies
WSI uses a significant-contacts test for out-of-state employers. You need North Dakota coverage if any one of these is true: an employee earns, or would be expected to earn, 25 percent or more of their yearly pay from you for work done in North Dakota; 25 percent or more of your total payroll is for work done in North Dakota; or you hire a worker in North Dakota for work in North Dakota. A fully remote employee who lives and works in North Dakota is the clearest case, because the work is centered here. North Dakota can honor a reciprocal arrangement with another state in some cases, but you cannot assume your home-state policy covers the North Dakota hours, so confirm it before a claim rather than after.
Common remote setups
| Setup | North Dakota coverage? | Notes |
|---|---|---|
| Remote worker living and working in North Dakota | Generally yes | Work is centered here, so open a WSI account for those wages |
| Out-of-state employer that hires someone in North Dakota | Generally yes | Hiring here for work here is one of the significant-contacts triggers |
| North Dakota worker traveling to another state briefly | Often still North Dakota | Coverage usually follows where the job is centered and where hired |
| Worker split across states | Depends | The 25 percent pay and payroll thresholds and any reciprocal arrangement decide it |
What to do if you are out of state
If your company is based elsewhere but you hire someone who will work in North Dakota, or you cross one of the 25 percent thresholds, treat it as needing a WSI account. Open the account, report that worker's North Dakota wages, and keep your other-state policy for the workers who belong there, because that policy will not cover the North Dakota exposure on its own. It is also worth carrying stop-gap employers liability, since WSI pays a hurt worker's benefits but does not defend a lawsuit, and a remote-injury claim can still bring a suit. Sorting this out up front avoids being billed for uncovered North Dakota wages after an injury.
A Fargo example
Illustrative, not a quote. A software company headquartered in another state hires a developer who lives and works from home in Fargo. Because the developer's job is centered in North Dakota, the company opens a WSI account and reports the developer's wages here, keeping its home-state policy for the rest of the team. It also carries stop-gap employers liability so a workplace-injury suit would be defended. See our workers comp for tech companies page.
Real questions North Dakota owners ask
Do I need North Dakota workers comp for a remote employee here?
Generally yes. If the worker mainly performs the job in North Dakota or was hired here, you cover them with the state fund, WSI, even if your business is based in another state.
I am an out-of-state employer with one worker in North Dakota. What do I do?
If you hire in North Dakota or cross the state's significant-contacts thresholds, you open a WSI account and report that worker's wages. Keep your other-state policy for the workers who belong there.
What decides whether I need North Dakota coverage?
WSI uses a significant-contacts test: 25 percent or more of a worker's yearly pay for work here, 25 percent or more of your payroll for work here, or hiring a worker in North Dakota for work in North Dakota.
My North Dakota worker travels to other states. Are they still covered here?
Often yes. Coverage usually follows where the job is centered and where the worker was hired, so a North Dakota-based worker on a short trip generally stays on the WSI account. Confirm longer assignments.
Can my existing out-of-state policy cover the North Dakota worker?
Usually not on its own. Because North Dakota sells coverage through its own state fund, an out-of-state policy does not satisfy the requirement here unless a reciprocal arrangement applies.
Where do I buy the North Dakota coverage?
Only from the state fund, Workforce Safety and Insurance, known as WSI. You open a WSI account for the North Dakota wages rather than shopping for a private policy, because there are no private carriers.
Does the state policy defend me if a remote worker sues?
No. WSI pays a hurt worker's benefits but does not provide a legal defense. Stop-gap employers liability added to your general liability policy covers that defense, including remote-injury claims.
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?
- 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)
- What workers comp does not cover
- Workers comp vs employers liability
- North Dakota tech 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.