Workers' compensation in North Dakota: Mandatory (monopolistic state fund). Coverage typically required at 1+ employee. Average premium runs $0.90 per $100 of payroll for a standard risk class. Market type: Monopolistic state fund.
Requirement Status
Mandatory
monopolistic state fund
Employee Threshold
1+ employee
Mandatory coverage trigger
Avg Cost Per $100 Payroll
$0.90
Standard risk class average
| Rule | Detail | Notes |
|---|---|---|
| Market type | Monopolistic state fund | Where you buy your policy |
| Employee threshold | 1+ employee | Trigger for mandatory coverage |
| Sole proprietor exemption | Sole proprietors and partners may elect to be covered voluntarily through WSI; they are not required to do so. | Self-employed coverage rules |
| Industry-specific rules | All industries with 1+ employee covered. Agriculture: farm workers are covered under WSI. Private workers' comp insurance is not permitted — all employers must use WSI. | Higher-hazard industries have stricter rules |
Premium rates are state class-code-based. Construction, roofing, and trucking pay $5–$20+ per $100 of payroll; clerical and office work pays $0.10–$0.40. Experience modification factors (EMR) further adjust your final rate.
North Dakota operates a monopolistic workers' compensation system through Workforce Safety & Insurance (WSI), the state's exclusive workers' comp carrier. Unlike in most states, employers cannot purchase workers' comp from private insurers — WSI is the only lawful source of coverage in North Dakota. This monopolistic structure provides consistent benefit administration and keeps administrative costs low, which is reflected in North Dakota's below-average premium rates. North Dakota's economy is driven by oil and gas extraction (Bakken shale), agriculture, healthcare, and construction. Oil field service work carries some of the highest classification rates in the state due to the serious injury and fatality exposure associated with drilling operations.
Employers from other states who send workers into North Dakota on temporary assignments must ensure WSI coverage is in place — North Dakota does not honor out-of-state private workers' comp policies for work performed within the state. This is a common compliance pitfall for multistate contractors. WSI coverage must be obtained directly from the state fund. Sole proprietors and partners are not required to cover themselves but may voluntarily enroll in WSI, which is strongly advisable for those working in hazardous occupations like oil field work, farming, or construction. WSI's monopolistic status means there is no price competition, but the state fund's efficiency and North Dakota's relatively low litigation rate help maintain competitive overall costs.
Workers' comp pays medical bills + lost wages for injured workers and provides 'exclusive remedy' protection — employees generally can't sue you for workplace injuries when coverage is in place. Operating without required WC can mean massive personal liability and state penalties.
North Dakota is one of four monopolistic states — Workforce Safety & Insurance (WSI) is the only lawful workers' comp provider. No private insurance is permitted.
North Dakota is a monopolistic state — you must purchase workers' comp from the state fund only. Private carriers cannot sell WC here. For coverage outside the state fund (employer's liability), you need a separate stop-gap endorsement.
💡 North Dakota Pro Tip
Yes. North Dakota is one of four monopolistic states — all employers with one or more employees must obtain workers' comp coverage exclusively from Workforce Safety & Insurance (WSI). Private workers' comp insurance is not permitted. Out-of-state employers sending workers into North Dakota must also obtain WSI coverage for those workers while they are in the state.
North Dakota's average workers' comp cost is approximately $0.90 per $100 of payroll, below the national average. Oil field service work, roofing, and logging carry significantly elevated rates due to hazardous working conditions, while agricultural office and retail work is much lower. Since all coverage is through WSI, there is no price competition — rates are set by the state.
Sole proprietors and partners are not required to enroll in WSI in North Dakota. However, voluntary enrollment is available and is strongly recommended for sole proprietors who perform physical work in oil field services, construction, or agriculture. Without voluntary coverage, you bear full personal financial risk for any on-the-job injury.
Compliance rules from North Dakota's Department of Labor and Workers' Compensation Commission; rate averages reflect 2026 NCCI loss cost filings and state fund rate orders.
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.