North Dakota Workers' Compensation Guide
North Dakota is a monopolistic state fund. Coverage must be purchased through the state fund — no private carriers.
1
employee threshold
Monopolistic
0.85x
vs national median
Optional
When Is Coverage Required?
In North Dakota, workers' compensation insurance is required once you have one or more employees.
Sole proprietors and partners: Not automatically required — you can typically opt in through an endorsement to protect yourself against workplace injury.
Independent contractors: Not covered under your policy if properly classified. Misclassification is a common audit finding — the auditor may add contractor payroll to your workers' comp policy if they don't have their own certificate of insurance.
Where to Buy Coverage
North Dakota is one of only 4 monopolistic state-fund states (OH, ND, WA, WY). You must purchase coverage from the state fund. Private-market carriers cannot write policies here.
The state fund handles claims, sets rates, and manages the assigned risk pool. Rates tend to be more stable but less flexibly priced than competitive markets.
Apply here: https://www.workforcesafety.com
Cost in North Dakota
North Dakota's state loss cost multiplier is approximately 0.85x the national median. That's near the national middle.
Rough premium estimates by industry (per $100 of annual payroll):
- Office / clerical: ~$0.13
- Retail store: ~$1.02
- Restaurant (full-service): ~$1.57
- General construction: ~$5.78
- Roofing: ~$12.75
Consequences of Going Uninsured
Operating without required workers' comp coverage in North Dakota exposes you to:
- Civil penalties (typical range: $1,000 – $10,000 per uninsured employee)
- Personal liability for any workplace injury (medical + lost wages + pain and suffering)
- Criminal charges in serious cases (misdemeanor to felony depending on state)
- Stop-work orders that halt operations until coverage is in place
- Loss of business license
For most businesses, coverage costs a small fraction of one uninsured claim.
North Dakota-Specific Workers' Comp Details
What makes North Dakota's workers' comp system different from other states.
- North Dakota is one of only 4 monopolistic state fund states — coverage available only through Workforce Safety & Insurance (WSI). No private-market option.
- North Dakota requires coverage from the first employee.
- North Dakota's premiums are set by WSI, with rates published annually.
Reference only — verify with the North Dakota regulator.
Requirements and thresholds change. Certain industries (agriculture, domestic workers) may have different rules. Consult a licensed insurance agent or theNorth Dakota workers' compensation regulator before making coverage decisions.