Failure to Secure Coverage

If you have employees working for you at this time and you do not have a WSI account, you are uninsured in 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. You may also be subject to penalties and interest for failure to secure coverage. 

An employer may be liable for the actual cost and reserves of any claim attributable to the employer during the time the employer was uninsured. 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. See North Dakota Century Code § 65-04-33(4).

CEASE AND DESIST

WSI has the authority to issue a Cease & Desist Order to employers that are without workers’ compensation coverage or are in an uninsured status.   Employers may also be subject to a $10,000.00 penalty and $100.00 per day penalty for each day the violation continues.

A general contractor or subcontractor that willfully uses the services of a subcontractor precluded from operating under a cease and desist order is subject to a penalty of $5,000 and $100 per day for each day the violation occurs.

See North Dakota Century Code § 65-04-27.2.

GENERAL CONTRACTOR LIABILITY

As the general contractor, you bear the legal responsibility of ensuring that your subcontractors and independent contractors are adequately insured under Title 65. General Contractors may be held liable for the unpaid premiums and penalties of a subcontractor or independent contractor who does not secure the required coverage.

According to North Dakota Century Code § 65-04-26.2, “An individual employed by a subcontractor or by an independent contractor operating under an agreement with a general contractor is deemed to be an employee of the general contractor and any subcontractor that supplied work to the subcontractor or independent contractor. A general contractor and a subcontractor are liable for payment of premium and any applicable penalty for an employee of a subcontractor or independent contractor that does not secure required coverage or pay the premium owing. The general contractor and a subcontractor are liable for payment of premium and penalty until the subcontractor or independent contractor pays this premium and penalty. The liability imposed on a general contractor and a subcontractor under this section for the payment of premium and penalties under this title which are not paid by a subcontractor or independent contractor is limited to work performed under that general contractor.”

WSI may request a list of your subcontractors and independent contractors at any time.

To verify if a business has coverage with WSI, use the online Employer Search tool or contact WSI directly at 1-800-777-5033.

The status of an employer account is subject to change at any time.