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Is Workers' Comp Required in North Dakota?

North Dakota Workers Compensation Requirements

    North Dakota employers with any employee(s) are required by law to purchase workers compensation insurance. This includes seasonal, occasional, part-time, and full-time employees.

    Sole-Proprietors and Partners are automatically excluded from workers' compensation coverage, but they can elect to be covered on a policy. This includes spouses and children under 22 years of age. Requires ND coverage contract for inclusion.

    Corporate Officers and LLC Members are also automatically excluded from work comp coverage, but they may elect to be included. Requires ND coverage contract for inclusion.

    All companies with any full or part-time employees are required to purchase workers compensation insurance in ND.

Workers' Comp Exemptions in North Dakota

    Sole-Proprietors and Partners who include themselves on workers compensation coverage must use a payroll amount of $35,600 for rating their overall workers' compensation cost.

    Officers and LLC Members who are not excluded from coverage must utilize a minimum payroll of $35,600 in order to calculate the cost of workers comp insurance.


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How is Workers Comp Calculated?

Workers' compensation is a commercial insurance product categorized as Property & Casualty insurance (P&C Insurance). Even though workers comp is calculated using estimated payroll wages and class codes, premium is still a separate business expense from the cost of payroll. Business owners may treat the cost of coverage as an expense on their taxes.

Work comp rates for all job classification codes are always expressed as a percentage of $100 in wages. An annual policy is always subject to an audit because it was based on estimated wages and not actual wages.

Here is an example using two class codes with different estimated payroll for each class code:

Class Code Insurance Companies Rate Per $100 Estimated Annual Payroll Divide Payroll by 100
8810 Clerical $0.28 base manual rate $25,000  (25000 divided by 100) 250
8835 Home Health Care $1.75 base manual rate $100,000  (100000 divided by 100) 1000

In order to calculate the cost of the policy you only need to multiply each rate with its divided payroll. It benefits employers to re-calculate their premium as their payroll becomes larger than originally anticipated.

Class Code Workers Comp Calculator Estimated Premium
8810 Clerical $0.28 X 250 $70.00
8835 Home Health Care $1.75 X 1000 $1,750.00
Workers' Compensation Laws Vary by State

Every state has their own rules for how employees must be covered and how they must be classified for rating premium. A lot of states use state specific class codes and have different requirements for who is obligated to carry workers' compensation insurance coverage.

If you have employees that travel out of state for work, or they work in multiple states throughout the year, you may need to purchase insurance for all the states where your workers are located and working. In most cases, you can add multiple states to one policy.

Workers' Compensation Insurance in North Dakota can be purchased from private insurance companies authorized by the state to provide coverage. The Assigned Risk Pool, or State Insurance Fund, is available for employers who are unable to find coverage from a private company. WorkersCompensationShop.com can help you navigate your best options.

Policy premium is based on numerous factors including: class codes assigned to your business and employees, estimated payroll, covered states, prior policies, owner experience and previous insurance claims.

See North Dakota workers' comp insurance rules

What is Covered in North Dakota?

North Dakota workers' compensation insurance helps pay claim expenses when an employee, or a covered sub-contractor, is injured while working for your business. It also shields your business from other legal liabilities associated with injured employees. Work comp coverage includes:

Medical Costs

Workers' comp insurance pays for the medical expenses associated with claims or injured workers. The cost of an ER visit, required surgeries and drug prescriptions are some of the covered expenses included under a policy. An employee injured due to a slip and fall would be covered, for example. Covered medical costs can also include longer term expenses such as physical therapy or rehabilitation.

Employee Wages

Most business owners can't afford to continue paying employees if they are unable to work while they are injured. Workers' compensation in North Dakota will replace most of your employees missing income if they are away from work due to an injury or illness. For example, if a construction employee broke his arm and could not perform the job for 8 weeks, the coverage would make payments to the employee to help replace the lost wages.

Short-Term and Long-Term Disabilities

Sometimes an injury can cause a partial disability or a more permanent disability. Workers' compensation insurance steps in to help pay the cost of ongoing medical bills and may even replace a portion of wages lost due to the disability. If an employee had a finger amputated due to a work-related injury. The employee could be paid a sum for the loss of the finger for permanent disability as well as some temporary disability coverage while recuperating.

Occupational Illness

Some types of work environments can include occupational exposures that have unforeseen circumstances. A chemical mixing operation, for example, may expose employees to chemical irritants and cause harmful reactions that make them sick. A workers' comp policy would cover the cost of treating an illness caused while performing the job.

Funeral Expenses

Nearly 50,000 deaths happen at work each year. Many of these are in the construction and trucking industries. A workers' compensation policy is designed to cover the cost of these funerals and to provide death benefits to the employees family. State guidelines often determine the dollar amount of coverage.

Workers compensation coverage is a No-Fault system designed to prevent costly employee lawsuits related to on-the-job-injuries. Many state provisions include Exclusive Remedy rules that protect covered businesses from these lawsuits in exchange for providing workers' comp coverage for their employees.

Enjoy the benefits of our Pay As You Go Workers' Comp Options in North Dakota.

The state of North Dakota is one of the four remaining monopolistic states left in the country. Nevada and West Virginia were last two states to move from a monopolistic State Fund to an open market system allowing competition from private insurance companies. This means workers' compensation insurance can only be purchased through the North Dakota State Fund State Fund, Workforce Safety and Insurance (WSI). If you are a North Dakota employer, or you are doing work in the state of North Dakota, you will need to contact Workforce Safety and Insurance in order to purchase workers' compensation insurance coverage:

Although our Agency can't help ND employers find workers comp coverage in the state, we often help North Dakota business owners purchase other state workers' comp coverage. If you are a North Dakota employer doing business outside of the state, or you have employees who live outside the state, please contact one of our Workmen's Comp Specialists at 888-611-7467 to find affordable a workers' compensation quotes for other states.

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ND Workers' Comp Specialists

North Dakota has a unique provision for developing workers compensation rates and manual premium for coverage. Workers' compensation premiums are assessed only on the first $35,600 of wages per employee. There is no additional premium for wages or salaries over $35,600 (as of Jan 1, 2016).

Help with ND Class Codes

Like other monopolistic states, North Dakota does not utilize NCCI classification codes like most states that allow private insurance carriers to compete. This often creates problems when doing business in other states. Employers can follow this link to view the most recent North Dakota Classification Manual.

Fast Workers' Comp Quotes

We make the process of getting workers compensation quotes fast and easy. We know your time is valuable. That's why we work harder to streamline the quote process, compare your rates and coverages, and present your best options as quickly as possible. We often have your insurance quotes ready in less than 24 hours.

Compare Rates With More Carriers

We're a National Agency, and we have tons of carriers offering work comp in other states near North Dakota. We have access to over 35 insurance companies with a diverse appetite and competitive rates. Our markets know we expect the lowest rates and more credits when we request a quote.

THE RIGHT QUOTE MAKES A DIFFERENCE.

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WORKERS' COMPENSATION INSURANCE

Did you know that the cost of a workers comp policy in North Dakota can vary significantly between insurance company, underwriter, and insurance agency?
Find the best deal on workers compensation insurance.
Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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