Insurance Coverage
If you have a question or concern regarding insurance coverage, or if you are an existing policyholder, feel free to contact our Employer Services Department via email at
wsiemployerservices@nd.gov
Who Needs Coverage
Employers Who are Required to Obtain Coverage:
An employer is defined as a person who receives the services of another
for remuneration. It includes individuals, the state, corporations and
their officers, partnerships and their partners, limited liability companies
and their managers, associations, legal representatives of a deceased
person, and receivers and trustees. Please contact our Employer Services
Department for assistance in determining if your business entity is
an employer for purposes of North Dakota law.
Under the North Dakota Century Code, workers’ compensation provides
workers with wage-loss and medical benefits for injuries sustained in
the course of employment. General liability, health, and accident insurance
are not substitutes for workers’ compensation insurance. To be insured,
you must submit an application to WSI. Please see Obtaining
Coverage.
North Dakota Law, with limited exceptions, requires
all employers to secure workers’ compensation insurance
to cover their full-time, part-time, seasonal, or
occasional employees prior to hiring.
Workers’ compensation coverage is mandatory for
most employment. There are certain exceptions:
- Licensed real estate brokers subject to certain
criteria.
- Farm and ranch labor, certain custom operations,
household domestic workers, and employees engaged
in the operation and maintenance of a place
of worship.
- Independent contractors – to be considered an
independent contractor, you may need to complete
an Independent Contractor Verification Application
provided by the North Dakota Department of Labor.
Upon the approval of the Department of Labor
or WSI, you would then be exempt under the workers’
compensation statutes.
- Federal and railroad employees.
- Children of the employer(s) who are under the
age of 22 are not required to be covered. (NOTE:
Children aged 22 and older who are receiving
compensation for employment must be reported
as an employee.)
- Newspaper delivery personnel subject to certain
criteria.
Coverage Requirements for Out-of-State Employers:
Any employer whose employment results in significant contacts with North Dakota
shall acquire coverage with WSI. However, if your workers' compensation carrier
from your home state extends coverage into North Dakota, you must provide proof
of coverage. The exception to this requirement is if your home state has a reciprocal
agreement with WSI.
If your home state will not provide coverage into North Dakota, and you have
significant contacts with North Dakota, you must secure coverage with WSI. An
employer has significant contacts with North Dakota when:
- Any employee earns, or would have been expected to earn, 25 percent or more
of their gross annual wage or income from that employer for services rendered
within North Dakota; or
- Twenty-five percent of the employer's gross annual payroll is payable to
employees for services rendered in North Dakota.
The significant contact test does not apply if there is a reciprocal
agreement in place between the state the employees are based out of and North
Dakota. North Dakota has reciprocal agreements, with certain restrictions, with
the following seven states: Idaho, Montana, Oregon, South Dakota, Utah, Washington,
and Wyoming. Please contact the appropriate state for a determination as to
whether a reciprocal agreement will satisfy coverage requirements.
If you do not have significant contacts with North Dakota, as defined above, and you can provide proof that your
workers’ compensation carrier from your home state extends coverage into North
Dakota, you are not required to obtain a WSI policy.
If you open a workers’ compensation policy with WSI,
all payroll generated in North Dakota must be reported.
Please see Obtaining
Coverage.
Failure to Obtain Required Coverage:
If you have employees working for you at this time and you do not have a WSI policy,
you are uninsured in the state of North Dakota. Since you are required,
by law, to cover your workers against injuries, you will be required to
pay premium for the period you were not insured, and you may also be subject
to penalties for failure to secure coverage. Additionally, workers may
bring suit against you as an uninsured employer for damages caused by
an injury during the period in which you were uninsured.
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