Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in North Dakota

In North Dakota, most employers are required to carry workers compensation insurance to cover employees in case of work-related injuries or illnesses. This insurance helps protect your business from potential claims and ensures injured workers receive medical benefits and wage replacement.

When Workers Compensation Insurance Is Required

• Number of Employees: If your business has one or more employees, you generally must have workers compensation insurance.
• Type of Employer: Most private employers and public employers are included, but certain agricultural employers may have specific exemptions.
• Employee Classification: Properly classifying workers as employees versus independent contractors is critical, as only employees are covered under workers compensation laws.

Operational Considerations

• Business Registration: Register your business with the North Dakota Workforce Safety & Insurance (WSI) to obtain coverage or to report exemptions.
• Insurance Procurement: You can purchase workers compensation insurance through private insurers or through the state fund managed by WSI.
• Payroll Integration: Ensure payroll systems accurately track employee hours and wages to calculate premiums correctly.
• Recordkeeping and Reporting: Maintain thorough injury reports and comply with WSI reporting requirements to avoid penalties.
• Compliance Monitoring: Regularly review your coverage and employee status to stay compliant as your business grows or changes.

Exemptions and Special Cases

As of 2026, some small agricultural employers and sole proprietors without employees may be exempt from carrying workers compensation insurance. However, these exemptions are specific and require formal notification to WSI.

Summary

If you operate a business in North Dakota with employees, securing workers compensation insurance is a key compliance and risk management step. Proper classification, timely registration, and ongoing recordkeeping will support smooth operations and protect your business and workforce.