Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in North Dakota

In North Dakota, whether you need workers compensation insurance depends on the size and nature of your business. Understanding these requirements is essential for compliance and protecting your employees.

When Workers Compensation Insurance Is Required

• Employers with one or more employees: If your business has at least one employee, you generally must carry workers compensation insurance. This coverage helps cover medical expenses and lost wages if an employee is injured on the job.
• Industry-specific exemptions: Certain agricultural employers and sole proprietors without employees may be exempt, but this varies based on your business operations.

Operational Considerations

• Employee classification: Properly classify workers as employees or independent contractors, since coverage requirements apply only to employees.
• Insurance options: You can obtain workers compensation insurance through private insurers or the North Dakota Workforce Safety & Insurance (WSI) agency, which serves as the state provider.
• Recordkeeping and reporting: Maintain accurate injury and payroll records to comply with reporting requirements and support claims processing.
• Payroll impact: Workers compensation premiums are often based on your payroll size and industry risk classification, so accurate payroll tracking is critical.

As of 2026

North Dakota requires most employers with employees to carry workers compensation insurance. Confirm your specific obligations with the North Dakota Workforce Safety & Insurance (WSI) agency, as rules and exemptions may update over time.