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:

1. 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
2. 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: