North Dakota is home to about 75,000 small businesses. The average general liability policy runs $510/yr per year, and a typical Business Owner's Policy (BOP) costs about $990/yr. Top sectors driving commercial insurance demand: Oil & gas, agriculture, healthcare, construction, drone technology.
Small Businesses
75,000
SBA estimate
Avg GL Premium
$510/yr
Solo / small business baseline
Avg BOP Premium
$990/yr
GL + property bundle
| Topic | Detail | Notes |
|---|---|---|
| Top industries | Oil & gas, agriculture, healthcare, construction, drone technology | Industry mix drives carrier risk appetite |
| Notable licensing/insurance rules | North Dakota contractor licensing requires registration with the Secretary of State and proof of insurance. Oil field operators must carry specific environmental impairment liability. | Verify with your state's regulator before opening |
| Top workers' comp class codes | Oil field workers, agricultural laborers, construction trades, drone technology operators | Class code drives WC rate (per $100 payroll) |
| Notable state rule | North Dakota is one of four MONOPOLISTIC workers' compensation states — all workers' comp must be purchased through WSI (Workforce Safety & Insurance), the state fund. Private workers' comp insurance is NOT permitted. | Compliance affects coverage eligibility |
Premium averages reflect a baseline 'main street' small business with under 10 employees, under $1M revenue, and standard risk class. Higher-hazard industries (construction, restaurants, contractors) pay 2–5× these averages.
North Dakota's approximately 75,000 small businesses operate in a state defined by its Bakken oil formation — centered around Williston and Minot — and its agricultural prowess in wheat, sunflower, and canola production. The oil boom of the 2010s and its modern resurgence has transformed communities in western North Dakota, creating significant demand for oilfield services liability, well control, and environmental impairment coverage. Fargo and Bismarck anchor professional services, healthcare, and government activity. North Dakota has also become a surprising national leader in unmanned aerial systems (drone) technology, with Grand Forks Air Force Base hosting one of the nation's premier drone testing and development facilities.
North Dakota is one of only four states in the nation with a monopolistic workers' compensation system — all employers must purchase workers' comp from WSI (Workforce Safety & Insurance), the state fund. Private workers' comp carriers cannot write coverage in North Dakota. WSI is generally considered a well-run state fund that provides competitive rates, but businesses cannot shop the private market for workers' comp. This means the entire market for workers' comp premium revenue flows to WSI. For other business insurance lines (GL, commercial property, commercial auto), the private market operates normally. Oil and gas operations require specialty energy coverage — blow-out control, well operators' extra expense, and environmental impairment liability — that WSI does not cover.
GL pays for third-party bodily injury, property damage, personal injury, and advertising injury claims. Most small businesses carry $1M per-occurrence / $2M aggregate as a baseline. Required by most commercial landlords and standard in vendor contracts.
A Business Owner's Policy bundles general liability + commercial property + business income loss. In North Dakota, BOPs typically cost only 20–40% more than GL alone, making them the standard pick for retail, office, and service businesses with under 100 employees and under $5M revenue.
North Dakota is one of four MONOPOLISTIC workers' compensation states — all workers' comp must be purchased through WSI (Workforce Safety & Insurance), the state fund. Private workers' comp insurance is NOT permitted.
💡 North Dakota Pro Tip
North Dakota does not mandate GL for all businesses, but contractor registration with the Secretary of State requires proof of insurance, and oil and gas operators must carry environmental impairment liability. Commercial landlords and government contracts in Fargo and Bismarck require GL.
North Dakota is a relatively affordable state for GL coverage, averaging around $510 per year, with BOPs averaging approximately $990 annually. Workers' compensation must be purchased exclusively from WSI (the state fund) — private workers' comp is not permitted. Oil and gas businesses carry additional specialty energy insurance costs above the general commercial baseline.
North Dakota is a monopolistic workers' comp state — all employers must purchase workers' compensation exclusively from WSI (Workforce Safety & Insurance), the state fund. Private workers' comp insurance is not available in North Dakota. There is no option to purchase coverage from a private insurer. WSI administers all claims and sets all rates.
Small business counts from SBA Office of Advocacy data; premium averages reflect 2026 carrier filings for North Dakota. Actual rates vary widely by industry classification, revenue, employees, and claims history.
Sarah Mitchell
Editorial Lead, Catastrophe & Commercial Property
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed May 2026
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.