North Dakota workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the North Dakota workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from North Dakota sources, verified as of June 2026.
In This North Dakota Guide:
Is Workers’ Comp Required in North Dakota?
Yes, workers compensation is required in North Dakota for all employers from the first employee hired; coverage must be in place before any employee begins working
North Dakota Workers’ Comp Requirements at a Glance
Here are the exact North Dakota workers compensation requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employees count toward the threshold including full-time, part-time, seasonal, and occasional workers; coverage is required before the employee begins working |
| Who is exempt | Sole proprietors without employees, the employer’s spouse and children under age 22, independent contractors, licensed real estate brokers and salespeople with independent contractor agreements, corporate directors not employed by the company, contact sport athletes, household domestic workers, employees of religious organizations, federal employees, railroad employees, and certain agricultural workers (though custom operators from outside North Dakota performing custom work must have coverage) |
| Owners & officers | Sole proprietors without employees are not required to carry coverage; corporate officers who own at least 10 percent of the corporation may elect exclusion by filing an Application for Exclusion of Officers and Stockholders with WSI; LLC members may elect exclusion in writing; excluded owners and officers may purchase optional elective coverage through WSI |
| Penalty for going without | Employers without required coverage face a 10000 penalty plus 100 per day for each day the violation continues; WSI may issue a Cease and Desist Order forcing the employer to stop all operations; a general contractor or subcontractor that willfully uses a subcontractor operating under a cease and desist order faces a 5000 penalty plus 100 per day; uninsured employers are also liable for the actual cost and reserves of any claim during the uninsured period and lose tort immunity, meaning injured workers may sue the employer directly for damages |
| Monopolistic state? | Yes — must buy from the state fund |
| State fund | North Dakota Workforce Safety and Insurance (WSI) is the exclusive monopolistic state fund; all employers must obtain coverage through WSI |
How to Get Workers’ Comp Coverage in North Dakota
Employers must obtain coverage directly from North Dakota Workforce Safety and Insurance (WSI) at workforcesafety.com; there is no private carrier option and no assigned-risk pool because WSI is the sole provider and must accept all employers
What Workers’ Comp Covers in North Dakota
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical North Dakota policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit. That trade-off is the practical heart of the North Dakota workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in North Dakota
The most common way owners get the North Dakota workers compensation requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If North Dakota decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other North Dakota workers’-comp rules: North Dakota is one of only four monopolistic workers compensation states (along with Ohio, Washington, and Wyoming) where employers cannot purchase coverage from private insurers; WSI has issued over 1.8 billion in employer dividends over the past 20 years; it is unlawful for an employer to deduct any portion of the workers compensation premium from employee wages or salary;
no agreement by an employee to waive rights to compensation under Title 65 is valid; any employer whose employment results in significant contacts with North Dakota or enters into employment agreements in North Dakota must purchase coverage through WSI
Understanding North Dakota Workers Compensation Requirements
The North Dakota workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the North Dakota workers compensation requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
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Once you hit that count, North Dakota workers compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the North Dakota workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in North Dakota actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in North Dakota?
Yes, workers compensation is required in North Dakota for all employers from the first employee hired; coverage must be in place before any employee begins working
What is the penalty for not having workers’ comp in North Dakota?
Employers without required coverage face a 10000 penalty plus 100 per day for each day the violation continues; WSI may issue a Cease and Desist Order forcing the employer to stop all operations; a general contractor or subcontractor that willfully uses a subcontractor operating under a cease and desist order faces a 5000 penalty plus 100 per day;
uninsured employers are also liable for the actual cost and reserves of any claim during the uninsured period and lose tort immunity, meaning injured workers may sue the employer directly for damages
Can I buy North Dakota workers’ comp from a private insurer?
No. North Dakota is a monopolistic state, which means employers must buy workers’ compensation from the state fund rather than a private carrier. Some employers add separate stop-gap/employers-liability coverage privately.
Official North Dakota Sources & Resources
- North Dakota North Dakota Workforce Safety and Insurance (WSI): https://www.workforcesafety.com
- North Dakota Workers’ Comp Statute: https://ndlegis.gov/cencode/t65c01.pdf
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These North Dakota workers compensation requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More North Dakota Business Insurance Guides
Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.