What insurance is required when hiring workers?

Required Insurance When Hiring Employees in North Dakota

When hiring employees in North Dakota, businesses must secure specific types of insurance to comply with state regulations and protect both the company and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in North Dakota. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Applies to businesses with one or more employees.
• Coverage must be maintained continuously while employees are on payroll.
• Employers must report new hires to the North Dakota Workforce Safety & Insurance (WSI) agency.

Unemployment Insurance

Employers must also register for unemployment insurance through the North Dakota Job Service. This insurance provides temporary income to employees who lose their jobs through no fault of their own.

• Registration is required once you hire your first employee.
• Employers pay quarterly unemployment taxes based on payroll and experience rating.

Additional Insurance Considerations

• Liability insurance: While not always mandatory, general liability insurance protects against claims related to employee injuries or property damage.
• Health insurance: Depending on the size of your business, you may be subject to federal requirements under the Affordable Care Act (ACA) to offer health insurance.

Operational Tips

• Maintain accurate payroll records to ensure proper insurance reporting and tax payments.
• Automate insurance premium payments and reporting to avoid lapses in coverage.
• Consult with your insurance provider or broker to confirm compliance with North Dakota-specific requirements.

As of 2026, always verify current insurance requirements with North Dakota Workforce Safety & Insurance and the North Dakota Job Service to stay compliant.