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

The average rate of approximately $1.65 per $100 of payroll is a statewide blended average — actual rates vary significantly by job classification.

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.

Average Workers Comp Rates by City in North Dakota

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.

The Coverage Gap Every Monopolistic-State Employer Misses

North Dakota is one of four monopolistic states, alongside Ohio, Washington and Wyoming. Workforce Safety & Insurance (WSI) is the sole provider and the regulator, and state law does not permit private insurers to underwrite workers' compensation here at all. There is no shopping, no carrier comparison, and no experience-modification arbitrage between insurers.

What that structure quietly removes is employer's liability insurance. A standard private workers' compensation policy in a competitive state contains two parts: Part One pays statutory benefits to injured workers, and Part Two — employer's liability — defends the employer when someone sues over a work injury outside the compensation system. A WSI policy generally provides the first and not the second.

The fix is a stop-gap endorsement added to your general liability policy. It restores the employer's liability function that the state fund does not supply, covering situations such as third-party-over actions, where an injured employee sues a manufacturer or contractor who then pulls you in. Most North Dakota employers who have never been sued do not know this gap exists, because nothing in the WSI account setup tells them. If you carry a general liability policy, ask your broker specifically whether stop-gap is endorsed onto it — the answer is frequently no.

Coverage Comes Before the First Day, Not After

North Dakota law requires employers to insure all employees — full-time, part-time, seasonal and occasional — before they begin working. There is no headcount threshold and no grace period, so the account with WSI needs to exist before the first hire starts, not within thirty days of it.

Two related rules are worth knowing because both are absolute: it is unlawful to deduct any part of the premium from an employee's wages, and no agreement by an employee to waive rights to compensation under Title 65 is valid. A signed waiver is not worth the paper regardless of what the employee agreed to.

Penalties for operating uninsured are structured to be more expensive than the premium avoided. A non-compliant employer can be required to pay the premiums that should have been paid for all employees, plus a one-time $10,000 penalty and $100 per day for continued non-compliance. Falsely reporting worker hours or payroll carries a separate exposure of up to ten times the premium that would have been owed.

Independent Contractors Need a Verified Exemption

Independent contractors are not required to carry coverage for themselves, but the exemption is not self-declared. It must be obtained from WSI through an Independent Contractor Verification Application, and the resulting exemption is valid for one year.

The annual expiry is the practical trap. On a relationship that runs for several years, the certificate that was valid when the work started lapses quietly, and the hiring business is left without documentation for the period that matters. Collect the verification before work begins and diary the renewal date the same way you would a policy expiry — see how to verify subcontractor insurance for why this becomes expensive at audit.

Crossing State Lines Works in Both Directions — Badly

This is where monopolistic states create genuine operational problems, and remote work has made it far more common.

Coming into North Dakota. An out-of-state employer must secure WSI coverage if it has "significant contacts" with the state, which WSI defines as any of three tests: any single employee earns or expects to earn 25% or more of their gross annual wage for services rendered in North Dakota; 25% or more of the employer's gross annual payroll is payable for services rendered in North Dakota; or the employer hires an employee in North Dakota for work in North Dakota. Hiring locally triggers it outright. Where a home-state carrier extends coverage into North Dakota, proof must be provided, and reciprocal agreements may apply. North Dakota also does not permit master policies — WSI maintains individual accounts for each employer.

Going out of North Dakota. WSI is a state agency rather than an insurance company, so it cannot write coverage for exposure outside the state. It may provide limited coverage for North Dakota-based employees working out of state for not more than 30 consecutive days. Beyond that, or for any employee hired to work from another state, you must obtain coverage in that state separately. A North Dakota business that hires a remote worker living in Minnesota needs a Minnesota policy; WSI cannot cover them.

For employers whose staff travel, WSI has offered an optional All States Coverage programme at a flat annual premium, extending protection while employees work temporarily outside North Dakota. It excludes the other monopolistic states, and requires an active WSI account in good standing. Confirm current availability and pricing with WSI, as programme terms change.

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 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.

• North Dakota operates a monopolistic state workers' comp fund, so pricing isn't competitive between private carriers here — your main lever for controlling cost is your experience modification rate (EMR), not shopping insurers.

Frequently Asked Questions

Is workers' comp insurance required in North Dakota?

Yes. North Dakota requires workers' compensation coverage for employers with 1 or more employees. North Dakota is one of four monopolistic states (along with Ohio, Washington, and Wyoming) — employers cannot buy workers' comp from private insurers at all and must purchase coverage directly through the state fund, WSI.

How much does workers' comp cost in North Dakota?

The statewide blended average is approximately $1.65 per $100 of payroll, though actual rates vary significantly by job classification and claims history — high-risk classifications like construction and roofing pay substantially more than clerical or retail classifications.

Who regulates workers' comp in North Dakota?

The Workforce Safety & Insurance (WSI) oversees North Dakota's workers' compensation system, handling claims administration, compliance, and dispute resolution between employees, employers, and insurers.

What happens if a North Dakota employer doesn't carry required workers' comp coverage?

Operating without required coverage exposes an employer to civil penalties, potential personal liability for injury costs, and loss of the exclusive remedy protection that normally shields compliant employers from direct lawsuits over workplace injuries.

Does a North Dakota WSI policy include employer's liability?

Generally no, and this is the most commonly missed gap in monopolistic states. A private workers' compensation policy contains two parts - statutory benefits and employer's liability - while a state fund policy typically provides only the first. The fix is a stop-gap endorsement added to your general liability policy, which restores the employer's liability function and responds to situations such as third-party-over actions. Many North Dakota employers do not have it because nothing in the WSI setup process flags the gap.

Can I buy workers' comp from a private insurer in North Dakota?

No. North Dakota is one of four monopolistic states along with Ohio, Washington and Wyoming, and state law does not allow private insurers to underwrite workers' compensation there. Workforce Safety & Insurance is both the sole provider and the regulator, so there is no carrier shopping. Other commercial coverages such as general liability can still be bought from private insurers.

What are the penalties for going uninsured in North Dakota?

A non-compliant employer can be required to pay the premiums that should have been paid for all employees, plus a one-time $10,000 penalty and $100 per day for continued non-compliance. Falsely reporting worker hours or payroll carries a separate exposure of up to ten times the premium that would have been owed. It is also unlawful to deduct any part of the premium from employee wages, and employee waivers of Title 65 rights are invalid.

Does WSI cover my employees when they work in another state?

Only briefly. WSI is a state agency rather than an insurance company and cannot write coverage for out-of-state exposure, though it may provide limited coverage for North Dakota-based employees working outside the state for not more than 30 consecutive days. Any employee hired to work from another state, including remote workers, needs coverage in that state. WSI has offered an optional All States Coverage programme for temporary travel, excluding the other monopolistic states.

When does an out-of-state employer need WSI coverage?

When it has significant contacts with North Dakota, which WSI defines by three tests: any single employee earns or expects to earn 25% or more of their gross annual wage for services rendered in North Dakota; 25% or more of the employer's gross annual payroll is payable for services rendered there; or the employer hires an employee in North Dakota for work in North Dakota. Hiring locally triggers the requirement outright, and North Dakota does not permit master policies.

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.