Workers comp coverage required in North Dakota
All employers with employees Verified 2026-05-09.
Who must carry workers comp in North Dakota?
North Dakota workers compensation coverage is required All employers with employees
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a North Dakota employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Individuals classified as independent contractors are generally not considered employees for workers' compensation purposes, provided they meet specific criteria defined by WSI to establish an independent contractor relationship. A general contractor is responsible for ensuring that subcontractors carry workers' compensation coverage for their employees. If a subcontractor does not have coverage, the general contractor may be held liable for injuries to the subcontractor's employees.
Penalty for going without
Employers failing to provide coverage are subject to fines, penalties, and may be held personally liable for the full cost of any employee injuries or illnesses. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in North Dakota?
All employers with employees
When does the requirement kick in for a new North Dakota employer?
The clock starts on the first day the first qualifying employee is on the books. North Dakota does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in North Dakota?
Employers failing to provide coverage are subject to fines, penalties, and may be held personally liable for the full cost of any employee injuries or illnesses.
Do 1099 contractors trigger the coverage requirement in North Dakota?
Individuals classified as independent contractors are generally not considered employees for workers' compensation purposes, provided they meet specific criteria defined by WSI to establish an independent contractor relationship.
Are subcontractors counted toward the threshold in North Dakota?
A general contractor is responsible for ensuring that subcontractors carry workers' compensation coverage for their employees. If a subcontractor does not have coverage, the general contractor may be held liable for injuries to the subcontractor's employees.
What happens if I am audited and found non-compliant in North Dakota?
North Dakota typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Employers failing to provide coverage are subject to fines, penalties, and may be held personally liable for the full cost of any employee injuries or illnesses. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.