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North Dakota Small Business Insurance
Last updated: 2026 · Data reflects current estimated industry averages and state regulations.
Workers' Comp Required At
1 employee
Est. Avg. BOP Premium
$640/yr
Workers' Comp Market
State Fund Only
State Income Tax
Applies
North Dakota Is a Monopolistic Workers' Comp State
North Dakota does not allow private insurance companies to sell workers' compensation coverage. Businesses must purchase their policy directly through the state's own workers' compensation fund rather than shopping between private carriers. This is a meaningful difference from most states, where you can compare quotes from multiple private insurers — in North Dakota, pricing and terms are set by the state program.
Estimated Small Business Insurance Cost in North Dakota
A standard Business Owner's Policy (BOP) — which bundles general liability and commercial property coverage — costs an estimated $640 per year for a small business in North Dakota, based on 2026 industry average data.
What Makes North Dakota Business Insurance Unique
North Dakota is a monopolistic workers' comp state — private insurers cannot sell the coverage, and businesses must purchase it directly through Workforce Safety & Insurance (WSI), the state fund.
What a North Dakota Small Business Is Legally Required to Carry
| Coverage | North Dakota requirement |
|---|---|
| Workers’ compensation | Required at 1 employee |
| Commercial auto (business vehicles) | 25/50/25 liability plus personal injury protection (no-fault state) |
| General liability | Not required by statute for most businesses; often required by leases, contracts and some licenses |
North Dakota is an NCCI loss cost state for workers’ comp, so each insurer applies its own multiplier; comparing at least two quotes on the same payroll and class codes is worthwhile.
Our estimate of about $640 a year for a business owner’s policy in North Dakota covers general liability and business property for a low-risk small business; contractors, restaurants, and businesses with vehicles pay more, and the required coverages above are priced separately.
How to Lower Your Business Insurance Costs in North Dakota
- North Dakota operates a monopolistic state workers' comp fund, so that piece of coverage isn't shoppable between private insurers — focus your cost-saving effort on your BOP and general liability policies instead, where carriers do compete for your business.
Frequently Asked Questions
Is workers' comp insurance required in North Dakota?
Yes. North Dakota requires workers' compensation coverage once a business has 1 employee. Sole proprietors and owners without employees are generally exempt for themselves, though LLC managers and corporate officers may be included or excluded depending on their role. North Dakota is also a monopolistic workers' comp state, meaning coverage must be purchased through the state fund rather than a private insurer.
How much does small business insurance cost in North Dakota?
A standard Business Owner's Policy (BOP) bundling general liability and commercial property coverage costs an estimated $640 per year for a small business in North Dakota, based on industry average data. Actual premiums vary by industry, payroll size, and claims history.
Is general liability insurance required in North Dakota?
No, general liability insurance isn't legally mandated in North Dakota for most businesses. It's frequently required contractually, though — commercial landlords, client contracts, and certain licensed professions often require proof of coverage.
Do LLC owners need workers' comp in North Dakota?
It depends on management role. LLC managers who can sign contracts or make business decisions are typically excluded from the requirement, while non-management members working for the LLC generally must be covered. This exemption is usually capped, so larger LLCs should confirm their specific obligation.
What insurance is legally required for a small business in North Dakota?
Workers' compensation (required at 1 employee), and commercial auto liability of at least 25/50/25 for business vehicles. General liability is not required by statute for most businesses but is commonly required by leases and contracts.
Related Tools
- → Business Insurance Calculator — Estimate your coverage needs and costs
- → Workers' Compensation Calculator — Estimate your annual workers' comp premium
- → Self-Employed Health Insurance Calculator
All North Dakota Insurance Guides
Compare requirements, average costs and state rules across every line of coverage in North Dakota.
This page is provided for general informational purposes only and reflects estimated industry averages and publicly available regulatory information as of 2026. Workers' compensation laws, thresholds, and exemptions change, and industry-specific rules are complex. Always verify current requirements with North Dakota's workers' compensation agency or a licensed insurance professional before making coverage decisions. This is not legal or insurance advice.