In North Dakota, the law mandates that nearly all employers obtain workers’ compensation insurance.

​In North Dakota, the law mandates that nearly all employers obtain workers’ compensation insurance to cover their employees, including full-time, part-time, seasonal, and occasional workers. This requirement must be fulfilled before any employee begins work. ​BradJohnsonInsurance.com+3North Dakota State Library+3Workforce Safety+3Workforce Safety+1OnPay+1

Monopolistic State Fund

North Dakota operates under a monopolistic workers’ compensation system, meaning that employers are required to purchase coverage exclusively through the state’s Workforce Safety & Insurance (WSI) agency. Private insurers are not permitted to underwrite workers’ compensation policies within the state. ​OnPay+6Insureon+6The Hartford+6Workforce Safety

Coverage Requirements

Employers must secure workers’ compensation insurance if they:​WorkWORLD+8North Dakota State Library+8The Hartford+8

• Hire employees to work within North Dakota.​The Hartford+2OnPay+2Workforce Safety+2
• Have employees working at a business location in North Dakota.​Workforce Safety

This obligation extends to out-of-state employers whose operations have significant contacts with North Dakota or who enter into employment agreements within the state. ​Workforce Safety

Exemptions

Certain categories of workers are exempt from mandatory coverage, including:​Thimble

• Sole proprietors​OnPay+2Thimble+2Insureon+2
• Partners in partnerships​WorkWORLD+15OnPay+15Thimble+15
• Corporate officers​TrustedChoice.com+7OnPay+7Insureon+7
• Spouses and children under 22 of the employer​OnPay+4North Dakota State Library+4Thimble+4
• Licensed real estate brokers with written independent contractor agreements​North Dakota State Library+2The Hartford+2OnPay+2
• Agricultural laborers​Thimble
• Domestic workers​Thimble (​In North Dakota, household domestic workers are exempt from mandatory workers’ compensation coverage. However, the state’s Workforce Safety & Insurance (WSI) does not provide a specific definition for “household domestic workers” within the publicly available resources.​ Generally, in various jurisdictions, the term “household domestic workers” refers to individuals employed to perform duties within a private residence. These duties often include housekeeping, cleaning, cooking, childcare, and other personal services. While this general understanding can be informative, it’s important to note that definitions may vary by state. Therefore, for precise information regarding North Dakota’s classification, it is advisable to consult directly with WSI or legal counsel familiar with the state’s workers’ compensation laws.)
• Employees of religious organizations​OnPay+2The Hartford+2Thimble+2

Penalties for Non-Compliance

Failure to secure the required workers’ compensation coverage can result in severe penalties, including:​TrustedChoice.com+3Thimble+3Insureon+3

• An initial fine of $10,000.​
• Additional fines of $100 for each day without insurance.​Thimble
• Obligation to pay premiums for the uninsured period.​North Dakota State Library

Benefits Provided

The workers’ compensation system in North Dakota offers various benefits to injured employees, such as:​

• Medical expenses coverage.​OnPay
• Wage-loss benefits, typically two-thirds of the employee’s pre-injury gross weekly wage, plus $15 per week for each dependent child, subject to statutory maximums and minimums.​Workforce Safety
• Vocational rehabilitation services.​
• Permanent partial impairment awards.​North Dakota Legislative Branch+2Workforce Safety+2North Dakota Legislative Branch+2
• Death benefits.​North Dakota Legislative Branch+2Workforce Safety+2North Dakota State Library+2

For detailed information and to apply for coverage, employers should contact North Dakota Workforce Safety & Insurance (WSI) directly.