North Dakota Workers Compensation Guide

Workers Compensation Requirements in North Dakota

North Dakota is one of four monopolistic states for workers' compensation — all employers must purchase coverage from the North Dakota Workforce Safety and Insurance (WSI) state fund. Private insurance is not available for workers' comp in North Dakota. WSI administers all workers' comp claims and benefits in the state.

Workers Comp Rates in North Dakota

Workers compensation premiums in North Dakota are calculated based on payroll, job classification (NCCI or state classification codes), and the employer's experience modification factor. The average rate of approximately $1.65 per $100 of payroll is a statewide blended average — actual rates vary significantly by job classification. A clerical office worker might pay $0.20-$0.40 per $100, while a roofing contractor might pay $15-$25 per $100.

For example, an employer with $1 million in payroll at the average rate of $1.65 per $100 would pay approximately $16,500 annually before experience modification adjustments. Employers with better-than-average loss experience (experience mod below 1.0) pay less; those with worse experience pay more.

Average Workers Comp Rates by City in North Dakota

Workers comp rates vary by location within North Dakota due to differences in local injury rates, medical costs, and insurer competition. The following estimated average rates per $100 of payroll reflect blended rates across all job classifications.

City	Est. Avg. Rate per $100 Payroll
Fargo	$1.72
Bismarck	$1.65
Grand Forks	$1.62
Minot	$1.60
West Fargo	$1.68
Mandan	$1.62

Rates shown are blended averages across job classifications. Actual rates vary significantly by occupation type. Consult a licensed workers' compensation specialist for employer-specific quotes.

What Makes North Dakota Unique

North Dakota is one of only four monopolistic workers' comp states in the nation (along with Ohio, Washington, and Wyoming). All coverage must be purchased from WSI — there is no private market. This creates a single-payer system for workers' comp that can be more efficient but eliminates private market competition. North Dakota's WSI is known for proactive safety programs and reasonable rates.

Workers Comp Benefits in North Dakota

North Dakota WSI provides temporary total disability, medical benefits, and permanent disability benefits according to WSI schedules. WSI also provides vocational rehabilitation services for injured workers who cannot return to their previous employment.

Employee Rights in North Dakota

North Dakota workers receive benefits directly from WSI. Disputes are resolved through WSI's internal review process with appeal to the district courts.

How Workers Comp Premiums Are Calculated in North Dakota

Workers compensation premiums in North Dakota follow this basic formula: (Payroll / 100) × Classification Rate × Experience Modification Factor = Premium. The experience modification factor (EMR or X-Mod) compares your actual loss experience to the expected loss experience for your industry. An EMR of 1.0 is average; below 1.0 means better-than-average safety record (lower premiums); above 1.0 means worse-than-average (higher premiums).

Job classification codes are assigned based on the type of work employees perform. Accurate classification is critical — misclassifying employees into lower-risk categories can result in premium audits and significant back-premium assessments. An employer with employees in multiple classifications must track payroll by class code throughout the year.

How to Reduce Workers Comp Costs in North Dakota

North Dakota employers cannot shop for workers' comp — all coverage is through WSI. The most effective way to reduce costs is through safety performance, which affects experience-based premium adjustments. WSI offers safety consultation services and safe employer discounts. Oil field employers in the Bakken should work closely with WSI on specialized safety programs.

• Implement a formal workplace safety program — documented safety training reduces injury frequency and improves experience modification over time.
• Develop a return-to-work program — getting injured workers back on modified duty reduces temporary disability claim duration and cost.
• Report all injuries promptly — early reporting enables timely medical treatment and claims management, reducing claim severity.
• Review job classifications annually — ensure employees are classified in the correct (not simply the lowest-cost) classification code.
• Work with a loss control specialist — many insurers offer free safety consultation services that identify hazard reduction opportunities.

The information on this page is provided for general informational purposes only and reflects estimated industry averages and state requirements as of 2026. Workers compensation laws, rates, and requirements change frequently and vary significantly by employer size, industry, and job classification. Rate estimates shown are blended averages and do not represent actual quotes for any specific employer. Always consult a licensed workers' compensation insurance professional and your state's workers' compensation regulatory agency for current, employer-specific information.